Home Insurance in Spain

Home Insurance in Spain, What You Should Know 

What is Home Insurance?

Home insurance or Homeowner’s insurance is coverage of property and its contents against damage or loss or unforeseen dangers that may be caused by human being such as burglary, terrorism, theft, riot, strikes, etc. and by natural calamities and disasters like cyclones, fire, flood, earthquakes, storm, etc. 

Is Home Insurance Mandatory in Spain?

Home insurance is not mandatory in Spain but as discussed above, it does provide you safety against several unpredicted risks and dangers in the future. 

What are the Risks that can be Encountered at Home?

There are many things in a home that can be hazardous and may cause the destruction of personal assets along with the property. There are other external reasons also for damage that may be caused to the property. Gas explosions, fire, thefts, damaged electrical appliances, etc. are some of the most common reasons why insurance is important. Natural calamities although are rarer but having coverage ensures that you won’t be impacted financially.

Spanish administration advises both the owner of the property and the tenant to insure their belongings. 

Types of Insurance Available

Broadly there are two types of insurance available:

Comprehensive Insurance – This type of home insurance would cover a variety of things including the building, personal belongings, and other structures on the property. Comprehensive insurance is costly because it covers everything on the property. 

Multi-risk Insurance – This type of home insurance covers a specific list of accidental events or situations. Only the mentioned things on the list will be insured. This type of home insurance costs lesser than the comprehensive one.

What are the Things that Should be Taken into Account When Underwriting a Home Insurance?

Amongst the most important factors that need to be taken into account when underwriting a homeowner’s insurance include:

  • The situation of the property. For instance, a flat somewhere in the middle of the building is lesser expensive than one on the first floor. They have a lesser risk of theft compared to the one on the first floor.
  • Surface area of the property should be mentioned in the insurance in meters squared. Other spaces such as parking lot, storeroom and common areas should also be mentioned.
  • The original date of construction of the house, details of when it was last renovated. The types of modification done to the heating system, electrical wiring and installations, and the water system. Regular improvements in the house are significant in avoiding any problems.
  • An old house with outdated facilities is usually not covered by the insurance. You must check with the insurance company about the type of compensation you would be liable for in case any damage happens, before taking insurance.
  • The address or the location of the property is also important. Its distance from the local police station, fire stations, etc. is also taken into account during the evaluation of home insurance.
  • Insurances often have exclusions in the fine print. You must ask them about such exclusions before signing a cheque for them.

Type of Insurance Recommended for a Home Occupant 

You may get insurance for your belongings if they are expensive. Other than that, the assets and the property belong to the owner and it is not worth it that you pay a premium for someone else. However, since you will be using their assets and the property, you must be careful and use them responsibly.

What is the Type of Insurance to Take When Buying an Off-Plan Home?

Off-plan property is considered as work-in-progress because construction work is yet to finish. Homeowners are not required to take any type of insurance during this phase. It is the developer that is liable to insure the under-construction property. 

There are many more aspects of getting home insurance and it depends on the person or company that is trying to get their property insured. For more details on home insurance, you can get in touch with us. We will explain everything about home insurance and get you the best deal that fits your requirement. You can get in touch with us on the below details. 

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