Landlord insurance in Spain

Landlord insurance in Spain is available to protect the policyholder from the costs and financial losses incurred as a result of non-payment of rent by the tenant. Additionally, the policy will assist with eviction proceedings resulting from non-payment. The insured receives the full amount of rent due but unpaid by the tenant. This will continue each month that the rent is unpaid until the situation is normalised with the tenant, the tenant is evicted or the maximum amount of cover you contracted under the policy is reached.

Contents

• Contact me about Landlord Insurance in Spain
• How much does Landlord Insurance in Spain cost?
• Non-payment of the rent
• Defence and claims related to the tenancy contract
• Acts of vandalism
• Losses as a result of fire
• What is needed to contract Landlord insurance in Spain?

Landlord Insurance Spain Principal Coverage

The principal covers under the policy include, unpaid rent as well as unpaid bills such as water and electric. Also covered is the loss of rental income in the case of a fire. You will have access to legal defence in respect the legal process if the tenant does not pay. The coverage also includes vandalism of the propertyas well as lock replacement.

Defence and claims related to the tenancy contract

When you rent out your property in Spain it is necessary to make a formal agreement. If there is a breach of the contract you can contact the insurance company. The insurance company will defend you and file claims in your name. For example, in the event your tenant does not pay the rent. Another example might be unpaid utility bills that have been specified in the tenancy agreement.

expenses incurred by the insured due to their involvement in administrative, judicial, or arbitration proceedings. The insurer will also provide legal assistance (both in and out of court).

• Legal defense or claims related to the insured’s rights in court regarding conflicts tied directly to the active rental agreement for any properties listed in the policy and governed by the Urban Leasing Law. This includes eviction lawsuits for non-payment, expiration of the contract, or unauthorized construction
• The insurer will provide the insured with access to a lawyer for telephone consultations. The lawyer will advise on general rights as a landlord and recommend the best course of action to protect those rights and prevent disputes.

Non-payment of the rent

The main reason people contract this type of insurance is to protect against non-payment of rent. The insurance company will pay the unpaid rent to you. It is necessary to start the legal eviction process with which the insurance company will assist you, to receive payment under this cover.

When you take out this type of policy you stipulate the maximum number of months of rent you want to be covered. For example, you might want cover for 12 month’s rent or you could choose as long as 24 month’s rent. The decision on how many months of rent you would like covered will depend partly on the premium and also how long the court process to evict the tenants might take in your area.

Acts of vandalism

This coverage applies once the property owner regains possession of the property and confirms that the tenant caused damage to the structure. The maximum limit is 100% of the amount insured with a 300 euro excess. Additionally, the owner can claim up to 200 euros in cleaning expenses after the eviction.

Losses as a result of fire

Definitions:

• Fire: The burning and blazing with flames that can spread, affecting objects that were not meant to be burned at that place and time.
• Explosion: A sudden and violent release of pressure or vacuum caused by gas or vapors.
• Lightning strike: A violent discharge caused by a disturbance in the atmosphere’s electric field.

What is covered?
The policy covers losses suffered by the insured due to the loss of rental income from the property in question if the rental contract is forcibly terminated because the property becomes completely uninhabitable as a direct result of fire, explosion, or lightning strike. An incident is considered to have occurred if fire, explosion, or lightning strike results in the property becoming entirely uninhabitable.

How much does Landlord Insurance in Spain cost?

The cost of Landlord insurance in Spain is very competitive. Imagine trying to collect unpaid rent on your own. Would you know how to do it correctly so as not to jeopardise your legal position? Is your own family lawyer specialised in this type of law? How much would they charge (per letter!)

The premium depends on whether the landlord has a portfolio of more than 5 residential properties or not. Other factors also include the rental being paid. To get a quote click the button below and send us the details and we will obtain a quote for you. Example, a landlord who rents out their flat for 500 euros per month would pay an annual premium of 279 euros. That works out at just 23 euros per month! (2024)

What is needed to contract Landlord Insurance in Spain?

In the past, before you can contract Landlord insurance in Spain, the insurer will need you to provide various documents about the financial state of the proposed tenant. Copies of payslips, work contracts, pension income etc. However, all you need now is to complete a quotation form by clicking the button below. If you like the quotation provided then the tenant will need to sign a short authority form (we provide you with the standard form) and the insurance company now use an algorithm and financial checks on the tenant using their fiscal identification number to assess whether they will accept the risk. The result is a lot less paperwork and much quicker answers as to whether the insurance will be issued.