Calculate home insurance in Spain

Whether your home in Spain is a villa, terraced house or an apartment it is a significant investment. As such, it is logical that you want to contract a suitable home insurance policy in Spain. Make sure you know what you are buying and that it meets your needs. Below we give you some information on how to calculate home insurance in Spain. Visit our page home insurance Spain page for more important general information.

Contents

How to calculate building insurance in Spain?

How to calculate contents insurance in Spain?

How to calculate building insurance in Spain?

The building’s cover should reflect how much it would cost to rebuild the property. Included in this rebuild calculation would be the cost of site clearance, architect and other professional costs and IVA (VAT in the UK).

Many insurance companies will estimate this figure for you. It will be based on the postcode for the area where you live and the number of square metres of the building. It is a guide only. Clearly, the materials used in one development might be of better quality than in another.

If you have had a property valuation done, then the rebuild figure should be in that report.

Most banks will ask for a policy that covers the amount of their mortgage. However, this may not be correct as the property may cost more or less to rebuild.

The rebuild cost is not the same as the market value. The market value is often much higher. This is because the market value will include the value of the land. It will also reflect the desirability of the area where your property is situated. If a fire destroys your property you do not have to buy the land again.

It is important to choose the right amount for the rebuild cost. If the rebuild cost is too low, then you face a double problem.

1. that the amount available to you under the insurance policy is not enough to rebuild your home.
2. If the amount you have insured the property for is a lot less than the amount to rebuild, then the insurance company may also claim the property has been underinsured. That would give them the right to further reduce the payout under the policy as you have not paid them the correct premium for the asset they insured.

How to calculate contents insurance in Spain?

There really is only one way to do this. That is to sit in the middle of the room and look around you. Add up the value of everything in the room. Then move to the next room and do the same. If you think of the value of your contents off the top of your head it will almost always be lower than the true figure. Take the time to write down the things you have in your property and give them a value.

One thing that is very important to know in Spain that is the entire kitchen comes under contents. The fitted units should be included under the contents cover and not buildings.

Like buildings insurance above if you underestimate the contents figure then you leave yourself open to possible argument of under-insurance. Under-insurance will mean that you have not paid the correct premium for the risk in your property. If that is the case, then you will not receive sufficient from the insurance to replace your losses.

Valuable items and jewellery

Pay particular attention to valuable items and jewellery. Valuable items are usually things like works of art, rugs, antiques, and collectables. Expensive sound equipment or televisions usually come under normal contents cover. List your valuables and jewellery and calculate a total. Insurance companies will often provide cover for low-value jewellery and other valuables up to a certain percentage of the total contents covered. For example, if your contents cover is 75,000 euros then one of the insurers we work with would give you an allowance of 20% of that figure for valuable items and jewellery. A maximum combines figure of 15,000 euros. If your valuable items or jewellery come to more than that then you would need to contract additional cover on the policy.

Many companies will restrict the amount of jewellery or valuable items covered as an overall total of the contents figure. So whilst it is possible to extend the cover each insurance company will have a ceiling. Often this is around 30% of the overall contents covered.

Particular items of jewellery or valuable items over a set amount will have to be listed and in some cases photos and valuations provided. Specific insurance companies have differing criteria.

Take care to calculate home insurance in Spain correctly and avoid disappointment later at a time when you need to make a claim and probably don’t need further dismay.