In Spain, home insurance is not compulsory for an owner without a mortgage. But for a house that is often empty, hundreds of kilometres from where you live, going without would be unwise. Here is the cover you need, and the pitfalls to avoid.
Home insurance (seguro de hogar)
It generally covers the building (continente) and its contents (contenido) against fire, water damage, storms, theft and broken glass, as well as your third-party liability. Points to check in the policy:
- that the property is declared as a second home, and the conditions if it is empty for long periods;
- the security requirements for theft cover (locks, alarm, shutters);
- legal protection, useful in particular if squatters occupy the property;
- damage caused by heavy rain and strong winds, common on the coast in autumn.
If you borrow in Spain
The lender requires at least insurance covering damage to the building. The bank will often offer its own insurance, sometimes in exchange for a better rate: compare the total cost. You do not have to take out its policies if another insurer offers equivalent cover.
In a flat
The owners' association generally insures the common areas and the structure of the building. Your insurance covers the inside of your home, your furniture and your liability, for example a leak into the flat below. Ask for the association's policy to avoid overlaps and gaps in cover.
If you let the property
Letting, and especially holiday letting, needs suitable cover: liability towards tenants, damage caused by occupants, loss of rent. Declare this activity to your insurer, otherwise they could refuse to pay out. The rules on letting are covered in our article letting your property.
Choose an insurance policy for its exclusions, not its price. Read them, or have them read, before you sign.
