If you are looking for home insurance Spain has a vast range of products available to you and using an independent broker is a good way to find the right product.
Our property, even if it is a second home, is usually a significant investment and one that needs protecting. Whether you have just bought your dream villa or are looking for home insurance for a holiday apartment in Spain then you want to make sure the product meets your needs for a sensible price.
It is not just homeowners who should consider home insurance in Spain. If you are renting, then you should consider home contents insurance in Spain.
Below we provide some useful information when you are considering what to include in your Spanish home insurance policy. The list below is not exhaustive but we believe highlights the main covers people are looking for. Contact us if the information you need is not below.
You can always ask for a quote by completing the Spanish home insurance quote form or calling our office.
TIP: If you have just bought a property in Spain then there are two very important matters to sort out immediately. One is to buy an appropriate home insurance policy and two change the locks. If it is a new build then how many agents, builders or project managers have a copy of that key? If the property you are buying is second hand it might not just be the old owners who are returning to a foreign country or moving to a faraway town that had keys. The property may have previously been used for holiday lets.
Home Insurance Spain
Having just bought your property in Spain make sure you have insured it and remember to change the locks!
Use of the property
It is important to make sure when you insure your property in Spain that the broker knows what you are going to use the property for. The risk factors for the main residence are different to say a property rented out to other people.
If you are looking for home insurance for a holiday rental property, then again that risk is different to home insurance in Spain for a property let on a long-term basis.
The most common uses are: main residence, second home, owner of a property rented long term to another, owner of a property rented as a holiday let, renting a property from someone else.
Sometimes it could be more than one of these. For example, you might be using the property for your own use but some months you rent it out for holiday lets. In this case, you need to select the option that is deemed the higher risk. So for this example, it would be home insurance for a holiday let in Spain.
Type of property
In order to obtain a quotation it is necessary to provide the type of property you are insuring. For example, is in an independent villa/chalet in Spain. Perhaps it is an apartment and in which case the insurance company will want to know if it is on the ground floor, the top floor or somewhere inbetween.
Buildings cover in Spain
The rebuild cost and not the market value is the figure you use for buildings insurance. If you bought your villa for 650,000 euros it does not mean it costs that amount to rebuild. Included in the price you paid is the land it sits on, its location, the views, the infrastructure, the desirability of the area and many other factors. Should a fire destroys your property those will not need replacing.
If you obtained a valuation when you purchased the property it will probably include the value to rebuild in the report. If you have a mortgage on the property the bank may have advised you of the minimum amount of insurance.
Most insurance companies will calculate an estimated rebuild cost for your property using a simple multiple of square metres to a value given to the postcode. If you feel this amount is too low then you can increase it. However, we do not recommend you reduce it as this could leave you open to what is known as underinsurance.
The types of cover could be fire, lightning, explosion, water damage, location of water leaks, vandalism, blocked pipes etc…
Contents cover in Spain
To calculate the value of your contents insurance in Spain the best way is to sit in the middle of each room and slowly look around you noting everything and giving it a value. One good description we saw about what to include in your Spanish contents insurance is to imagine turning your property upside down. Everything thank would fall to the ceiling would count as contents. This is not entirely true but would cover most things and makes a very good starting point.
In Spain, you also need to include the entire kitchen under contents, including the fitted units. So also add how much it would cost to replace the full kitchen, units and electrical items.
Typical covers that could be included are theft, water damage, electrical damage, replacement keys/locks, valuable items, and jewellery. You can protect items left in storerooms but there is usually a limit on the total and also an individual limit per item.
Sometimes called cosmetic damage it is an option to include in your home insurance in Spain. This is a value specified in the Spanish home insurance contract. The amount can be used, where for example, some kitchen tiles are damaged by a fire and have to be replaced. However, the colour or pattern is not available anymore. In this case, the kitchen wall might look a bit odd with two different tones of wall tile. The aesthetic damage cover provides a limited sum to pay for or put towards replacing all the wall tiles.
It is possible to include an option for aesthetic damage cover for the buildings element of the policy. It is possible to include a separate amount for the contents element.
Valuable items Antiques, jewellery
Some Spanish home insurance companies allow more flexibility than others when it comes to insuring antiques, artwork, valuable watches and jewellery.
You may find that the company automatically includes a set percentage of the contents cover to protect these types of items. However, you need to make sure that that is enough and if not top up your home insurance in Spain.
Often companies have a single-item limit. If one of your items or a collection has a higher value than that limit you will often need to provide a photo and valuation and have the item/collection listed in the policy.
Do not confuse valuable items with expensive television sets, for example. Those fall under normal contents cover. This section of your policy usually relates to tapestries, works of art, expensive rugs and antiques. Then there is a separate section for jewellery and watches.
Your home insurance in Spain can include cover for accidental damage. The level and terms of cover will depend on the conditions available from the particular insurance company. Look closely at what is and what is not covered. Check the exclusions.
Most Spanish home insurance companies now provide cover for food lost because of defrosting as a result of the electricity company cutting the supply, for example. Some also cover accidental leaks of the coolant or a malfunction. There is often a limit as to how old the refrigerator is for the cover to remain valid.
Your home insurance in Spain will usually have some amount of third-party or public liability cover included. Often you have the option to increase this. If you are renting your property out then you may wish to consider upping the public liability cover of your Spanish home insurance.
Your public liability may also include claims against damage caused by your pets unless they are deemed a dangerous dog in which case additional cover is required.
Spanish home insurance can also include the services of a handyman. This level of cover varies from company to company but could include: repairing an internal door that has come off a hinge, hanging a picture, or repairing the sealant of a shower. There is often a limit to how many times you can call out the handyman. Each company will have a long list of what is and what is not included.
This could be useful if you do not live in Spain all the time and have limited contacts.
it is sensible to keep your home in Spain as safe and secure as possible. In respect of how additional security items reduce your annual premium, it is often not by very much. However, if you have a lot of valuables or a high total for contents then the insurance company may insist on you having certain security measures. For example, a security door or an alarm connected to a security company or other security measures before they will agree to issue a policy.
How much does home insurance in Spain cost?
There are a significant number of factors that influence the cost of your Spanish home insurance. The age of the property, the size in square metres, its location, the security measures in place (see security measures above) the cost to rebuild the property, the value of your contents and the amount of jewellery or other valuable items such as antiques, just to name a few. The best way to find out is to fill in a short form online and request a home insurance quote in Spain.
Landlord Insurance Spain
If you are renting your property out on an annually renewable contract then you can protect your income with a Landlord insurance policy. This product does not work for holiday rentals or contracts that are not annual renewable (11 months for example).
If you are interested in this product then visit the page Landlord Insurance Spain.