Home Insurance in Spain: How does it work ?

Whether a new tenant or new homeowner in Spain, the home insurance question will come up as soon as you realise it’s necessary for your peace of mind.

What are the benefits and special characteristics of home insurance given you have chosen Spain as your new home base?

There is no obligation to insure your property in Spain if you are a tenant; however, there is an obligation for homeowners to be insured against fire (it’s up to you to verify whether the homeowner has the proper policy in such case).

If you’ve just purchased your property with a loan, then it will be mortgaged and, thus, insurance is mandatory to cover at least the risk of fire.

Whether a homeowner or tenant, taking out home insurance in Spain brings peace of mind as it covers your property in the event of theft, reimburses you for any damage caused by a water spill or pipes that leak into your neighbour’s home as well as damages caused by a storm, for example... In short, there are so many situations where it’s best to have the support of professionals who will be able to advise you rather than negotiate who pays what with your potentially annoyed neighbour or landlord!

And don’t forget what’s most important about this guarantee, also known as “multi-risk home”, is that it covers the civil liability of the people who live in the insured home. Civil liability covers any material damages or bodily harm caused to third parties by the insured party and beneficiaries.

Which home insurance should I choose?

Just as in the UK, you’ll find several home insurance in Spain on the private market. In general, irrespective of the insurer, they are categorised as “Basic-Standard-Full”. So, beyond the risks of fire and vandalism/theft which are common to all options, you may expand your home insurance policy to even include your personal possessions based on your needs.

Note that all home insurance policies, even the most basic ones, automatically include civil liability, legal assistance and 24/7 accident assistance.

I’m co-renting.  Can I be covered by the same insurance as my co-tenant?

It is possible for 2 co-tenants to be covered by the same insurance policy as long as both of their names are clearly stipulated in the contract.

How can you take out a home insurance policy in Spain?

Just as in the UK, whether you’re a tenant or homeowner, you must prove your identity to the insurer: passport or N.I.E number.

You must also provide your bank details (a Spanish bank account is not necessary). Finally, it is important to verify the accuracy of the information declared: home address, surface area, number of rooms, outbuildings...

How much personal possessions cover do I need?

It pays to make good calculations. In fact, home insurance premiums are established based on the information you provide to the insurer which means that information must be as close to reality as possible. And if you would like cover for the actual value of your personal possessions, we advise you make a precise inventory. It is up to you to then make an objective declaration (without omitting any outbuildings, pools or valuables, for example) so the insurance company can calculate your premium in proportion to the value of the personal possessions you wish to cover.

How can I lower my insurance premium?

There are several ways to lower your home insurance premium. Proving that your home has a reinforced door, “burglar proof” windows or an alarm will lower your home insurance premium. And if you have several insurance policies with the same company (home, automobile, health...), they will usually offer a “loyalty” discount.

What are the risks for tenants without home insurance?

Problems with the neighbours because of a leak or with the homeowner if your cat runs the living room carpet, for example... Without home insurance, tenants will never be compensated for any material damages caused. Beyond potential material damages to the home, not having home insurance also means you have no civil liability protection: so an “uninsured” tenant will have to pay all costs of any bodily harm or material damage caused to third parties!