Welcome to BuyAssociation.co.uk

Spain: Household Insurance

Overview

Household insurance (seguro de hogar) in Spain generally includes the building, its contents and third party liability, all of which are contained in a multi-risk household insurance policy. Policies are offered by Spanish and foreign insurance companies and premiums are similar, although foreign companies may provide more comprehensive cover.

Building

Although not compulsory, it’s wise to take out property insurance that covers damage to a building (continente) due to fire, smoke, lightning, water, explosion, storm, freezing, snow, theft, vandalism, malicious damage, acts of terrorism, impact, broken windows and natural catastrophes (such as falling trees). Insurance should include glass, external buildings, aerials and satellite dishes, gardens and garden ornaments. Note that if a claim is the result of a defect in building or design, e.g. the roof is too heavy and collapses, the insurance company won’t pay up (yet another reason to have a survey before buying!).

Property insurance is based on the cost of rebuilding your home and should be increased each year in line with inflation. Make sure that you insure your property for the true cost of rebuilding. It’s particularly important to have insurance for storm damage in Spain, which can be severe in some areas. If floods are one of your concerns, make sure you’re covered for water coming in from ground level, not just for water seeping in through the roof. Always read the small print of contracts. Note that if you own a home in an area that has been hit by a succession of natural disasters (such as floods), your household insurance may possibly be cancelled.

Contents

Contents (contenido) are usually insured for the same risks as a building (see above) and are insured for their replacement value (new for old), with a reduction for wear and tear for clothes and linen. Valuable objects are covered for their actual declared (and authenticated) value. Most policies include automatic indexation of the insured sum in line with inflation. Contents insurance may include accidental damage to sanitary installations, theft, money, replacement of locks following damage or loss of keys, frozen food, alternative accommodation cover, and property belonging to third parties stored in your home. Some items are usually optional, e.g. credit cards, frozen foods, emergency assistance (plumber, glazier, electrician, etc.), redecoration, garaged cars, replacement pipes, loss of rent, and the cost of travel to Spain for holiday homeowners. Many policies include personal third party liability, e.g. up to €300,000, although this may be an option.

Items of high value must usually be itemised and documentation (e.g. a valuation) along with photographs provided. Some companies even recommend or insist on a video film of belongings. When claiming for contents, you should produce the original bills if possible (always keep bills for expensive items) and bear in mind that replacing imported items in Spain may be more expensive than buying them abroad. Contents’ policies contain security clauses and if you don’t adhere to them a claim won’t be considered. If you’re planning to let a property, you may be required to inform your insurer. Note that a building must be secure with iron bars (rejas) on ground-floor windows and patio doors, shutters and locks. Most companies give a discount if properties have steel reinforced doors, high security locks and alarms (particularly alarms connected to a monitoring station). An insurance company may send someone to inspect your home and advise on security measures. Policies pay out for theft only when there are signs of forced entry, and you aren’t covered for thefts by a tenant (but may be covered for thefts by domestic staff). All-risks policies offering a worldwide extension to a household policy covering jewellery, cameras and other items aren’t usually available from Spanish insurance companies, but are available from a number of foreign companies.

Community Properties

If you own a property that’s part of a community development, the building is usually insured by the community (although you should ensure that it’s comprehensively insured). You must, however, be insured for third party risks (riesgo a terceros) in the event that you cause damage to neighbouring properties, e.g. through flood or fire. Household policies usually include third party liability up to a maximum amount, e.g. €300,000.

More pages

Page 1: Overview
Page 2: Holiday Homes
Page 3: Claims

Find your perfect holiday home - over 250,000 homes worldwide to chose from

www.holidaylettings.co.uk online advertising for home owners abroad

The best villa holidays from James Villas with our hand-picked villas and all the support you need in resort, we're the number one choice

Holiday home insurance with Staysure - the over 50's experts