Home Content Insurance In Spain - Globaloptimizer.com

Do you want to protect your Spanish home from risks like burglary and damage? We will explain home insurance in Spain and how to obtain it.

Spain is a popular expat destination, with over 12% of the population being foreign-born, and the warm climate and high standard of living draw many people. You’ll need to consider safeguarding against risks such as break-ins or fire damage to stop your dream life in the sun from turning sour.

Unlike some other kinds of insurance in Spain, home insurance is not a legal requirement for either the building or the contents. Many residents, however, purchase a policy to protect their worldly possessions for peace of mind. This guide will help you learn all you need to know about selecting good home content insurance coverage.

Introduction To Home Insurance In Spain

In Spain, there are two types of home insurance (Seguro de Hogar):

Contents insurance (Seguro de contenido) – It is also known as renters’ or tenants’ insurance, and it covers all movable assets such as furniture and valuables.
Building insurance (Seguro de construcción) includes fixed properties such as walls, floors, ceilings, and any internal fixtures.

In Spain, neither contents nor building insurance is required, but they are highly recommended, especially if you own expensive property. They are usually available as a package deal, commonly referred to as home insurance. In Spain, most types of home insurance typically include liability insurance coverage. If not, you can usually add it as an add-on.

In 2020, the home insurance sector in Spain was worth more than €4.6 billion, making it the third-largest non-life insurance sector in Spain after car insurance and health insurance. However, an estimated eight million homes in the country lack contents insurance.

The Spanish insurance market is regulated by the DGSFP – Directorate General for Insurance and Pension Funds (which translates to Dirección General de Seguros y Fondos de Pensiones). All businesses must follow the law or risk facing large fines or worse.

Is It Possible To Use Home Insurance From Another Country In Spain?

There are no laws in Spain prohibiting you from using home insurance from another country, so you can do so if you have bought an extended coverage policy that has overseas protection. Some insurers are willing to offer international contents insurance. On the other hand, companies typically only provide building insurance for houses abroad if they have products tailored to expats, such as holiday home insurance.

If you are relocating to Spain, your existing home insurance policy may be transferable to your new home if your insurance provider operates in Spain. All insurers from the EU/EFTA can operate in Spain as long as they follow certain EU regulations. However, your insurer will wish to recalculate your premium based on your new property and its risk factors. They may also charge an administrative fee. If you are thinking about doing this, check the terms with your current provider.

Spanish Home Insurance Companies

With the lucrative home insurance market in Spain, it shouldn’t be a surprise that there are numerous insurers to choose from. Indeed, the sheer number of companies can be perplexing at first. However, make sure to do your homework and get the right coverage for your home. Home insurance providers in Spain include:

Some companies, such as Liberty and Caser, cater specifically to expats living in Spain. However, many insurers only offer Spanish policies, which you should consider.

It pays to shop around because many Spanish banks sell insurance products, including home insurance deals.

Home Contents/Renters Insurance In Spain

In Spain, contents insurance (translates to seguro de contenido) is also known as renters’ insurance (seguro de inquilinos). This is because it is a popular purchase among renters who do not typically require building insurance. However, contents insurance is frequently sold to Spanish homeowners in conjunction with building insurance.

Contents insurance is optional in Spain, and it is the responsibility of the tenant to insure their belongings. Packages vary significantly between companies. Most, however, will offer a minimum of two levels of insurance (all-risk and standard), or they will offer a standard plan combined with the option of adding additional coverage as needed.

Standard plans cover fire and water damage. They frequently include electrical damage, theft, vandalism, and civil liability coverage. Exclusions are common and include limits on the total value of contents that can be covered, valuable items such as expensive jewelry, items kept in gardens, and damage caused by negligence or accidents.

All-risk plans, also known as fully comprehensive insurance, typically cover almost everything. This includes risks such as negligence-related damage, property removed from the premises, vehicles such as bicycles and boats, and emergency and legal expenses. In addition, they have higher payout limits on valuables. However, there are still constraints. You cannot, for example, make a claim for intentional damage or damage to road vehicles because cars require separate car insurance.

Home Contents Insurance Costs

The cost of your home contents insurance in Spain is determined by a variety of factors, including the condition and value of your belongings, the level of coverage you choose, risk factors associated with your property, your location, and your individual insurance profile.

Basic policies typically cost between €75 and €100 per year. All-risk coverage should cost between €125 and €200 per year. If you are insuring valuable items, this may be higher. Many businesses, such as Liberty, have cost calculators on their websites.

Building Insurance In Spain

Building insurance (Seguro de construcción) is typically available in Spain as a standalone policy. Some companies may list it as home insurance (also known as Seguro de Hogar) and sell it as the basic policy option, which covers the structure of the property but not the contents.

So, some companies also sell specific types of building insurance, such as for apartments in communal buildings, listed buildings, or properties that have been vacant for an extended period of time.

Building insurance is popular among landlords who rent unfurnished apartments. Some homeowners may choose to insure only their structure and not their contents. Spanish mortgage lenders may require building insurance coverage.

Building insurance coverage is typically available on several levels, similar to contents insurance. Basic plans will safeguard against fire and water damage to internal and external walls, ceilings, floors, lofts, and, in most cases, bathroom and kitchen units. Electrical damage and civil liability coverage are also included in some basic policies. Damage caused by negligence, earthquakes, and garden fixtures such as sheds and swimming pools is common exclusions.

All-risk policies will cover all of the above, as well as heating and cooling units, sanitation systems, and fixed lighting and sound equipment. Most policies will cover the cost of a full rebuild, whereas basic policies frequently have coverage limits and may only cover the repair rather than the replacement of certain structures.

Costs Of Building Insurance In Spain

The cost of Spanish building insurance varies depending on factors such as the building’s age, size, value, condition, location, and materials used. The insurer may also inquire about any security systems you have installed, as well as the primary purpose of the building (e.g., primary residence, secondary residence).

Basic plans typically cost around €100, but all-inclusive insurance on large detached properties can cost around €400-€500 or more. Costs can be calculated using a calculator like the one on the Caser website.

Combined Home Insurance In Spain

In Spain, the most common type of home insurance is combined insurance. It is commonly referred to as home insurance (Seguro de Hogar) or household insurance, and it includes both building and contents coverage. This usually includes liability insurance. Combined insurance is ideal for owners who have purchased a home in Spain with the intention of living in it.

When comparing the costs of two individual policies, you can typically save 10-20% by purchasing combined home insurance in Spain. To get a quote and compare it to individual building and contents insurance prices, use a price simulator like this one on the Liberty website.

Liability Insurance In Spain

In Spain, liability insurance covers your costs if an incident occurs that causes damage or injury to third parties or the property they own, either in your home or caused by your property. In the event of a fatal accident, it can cover legal fees, medical expenses, property replacement costs, and even funeral expenses.

Liability insurance is typically included in home insurance in Spain. Certain basic policies may not include it as a standard, but it is usually available for an additional premium. The maximum liability coverage on basic insurance policies ranges from around €300,000 to between €1 million and €5 million on all-risk plans.

Individual private liability insurance is not common in Spain unless you own a business or work in a professional capacity. Non-commercial liability insurance is not widely available from insurance companies. Santalucia is one of them. If you want to get a quote for a personal liability policy, use the calculator here (in Spanish).

How To Choose Home Insurance In Spain

Making a choice for the right home insurance in Spain is all about weighing the various factors important to you.

Aside from annual premium fees, here are some other things to think about:

The amount paid out by the company in the event of a claim.
If you can tailor the policy so that you aren’t paying for coverage, you don’t need and aren’t missing out on anything you do.
Any bonuses, discounts, or incentives, such as no-claim bonuses or new customer gifts.
What is the company’s reputation like in terms of customer feedback and online review sites?
How straightforward is it to file a claim or cancel a contract?

You can also look at how companies fare in terms of ethics, sustainability, and corporate social responsibility. Check sites like EcoVadis and CSR Hub to see if the company is listed there and how it performs.

Applying For Home Insurance In Spain

Each company, as is customary, has its own application process. However, with the majority of the large firms, you can begin by completing the quote form and proceeding from there. Depending on your requirements, a local agent may contact you to discuss your needs and walk you through the process.

The length of the process is determined by whether you purchase a combined policy with building insurance. If this is the case, you will typically be required to provide extensive information about the property, such as its age, size, and condition. Your insurer may request a professional valuation.

To obtain insurance, you will typically be required to provide proof of ID, an address, your NIE number, and bank account information. The policy and associated documents will be sent to you via email or regular mail. Most policies are for at least a year and may renew automatically if you do not cancel within the notice period.

How To Claim Home Insurance In Spain

If you have to file a claim for home insurance in Spain, you should do so as soon as possible. When you purchase your policy, your insurance company should provide you with detailed information about the claims process. Typically, you will need to call or email them. Most businesses require that you file a claim within seven days of the incident.

You have to fill out a claim form and provide information about the policyholder, the policy number, and the nature of your claim. If you are reporting damage, you may send photographs. A police report is usually required in the event of a burglary or criminal damage. Your insurer will most likely assign you a claims number and a claims representative.

Simple claims are usually settled within a few weeks. It may take longer if there are any questions, and you must provide additional information. According to Spanish law, you should be reimbursed within three months of the incident.

Canceling A Contract Or Changing Provider

If you are able to find a better deal or are dissatisfied with your current service, you can cancel your contract or switch insurers in Spain. Each business has its own set of termination terms and conditions. The notice period can last anywhere from 15 days to three months. If you purchased insurance for a set period of time, you might be required to pay an exit fee unless you have a valid reason for canceling.

Many home insurance policies in Spain tend to automatically renew unless you cancel them in advance. Typically, you will need to inform the company of your decision and provide reasons in writing. If the insurer has a valid reason, they can refuse to renew the contract and give you 15 days’ notice.

Making A Complaint About An Insurance Company In Spain

To file a complaint against a Spanish home insurance company, follow these steps:

Step One – Submit a written complaint to your insurance company’s Ombudsman or Customer Service Department. Your insurer should provide you with contact information for its Ombudsman. If not, they can be found on the DGSFP website.
Step Two – If you are dissatisfied with the response or do not receive one within two months, you may file a complaint with the DGSFP. After contacting the insurer, they will assess the complaint and issue a report stating whether they believe the company complied with the law.
Step Three – If you are still dissatisfied, your final option is to go to court. Before filing a complaint with the DGSFP, you can also go to court. Keep in mind, however, that you will be responsible for court costs.

Holiday Home Insurance In Spain

Many people have vacation homes in Spain. As a result, many Spanish insurance companies provide holiday home insurance, also known as second home insurance (Seguro de sefunda Vivienda). Offers are also available from expat insurance companies and holiday home insurance specialists like IntaSure in the UK.

So, holiday home insurance typically includes the same coverage as standard home insurance, plus you can usually insure against specific risks associated with second homes, such as rental income protection.

Useful Resources

DGSFP – Directorate-General for Insurance and Pension Funds (Direccion General de Seguros Fondos de Pensiones) – It regulates the Spanish insurance industry.
Acierto – It is an insurance comparison website
Home insurance terms & conditions – It is a sample document detailing general conditions

Frequently Asked Questions

How Much Does It Cost To Get House Insurance In Spain?

Is Home Insurance Mandatory In Spain?

Home insurance is not required in Spain, but it is strongly recommended. And don’t overlook the significance of civil liability insurance. In fact, home insurance covers your liability for third-party damages. In any case, the co-common property’s areas must be insured.

Is It Worth Getting Home Contents Insurance?

It is a good idea to purchase home contents insurance to protect your belongings from theft, fire, and other risks such as accidental damage. So, if something happens to destroy or damage your possessions, replacing them can be very expensive.

What Insurance Do You Need For Spain?

One of the main requirements for a short-stay visa to Spain is proof of travel insurance that covers the entire Schengen area. The document must demonstrate that your insurance has a minimum coverage of €30,000. It should also cover any medical incident, including repatriation, in the event of death.

Is Insurance Free In Spain?

Spanish healthcare is widely available throughout the country. It is open to the public, free of charge, and available to all Spanish citizens. People who work contribute to the public healthcare system on a monthly basis.

Is Healthcare Free In Spain For Non-Citizens?

Anyone working and living in Spain has access to free public healthcare. On some Spanish islands, however, you may have to travel around to find a state healthcare provider. Due to the decentralized nature of the Spanish healthcare system, you will need to check the conditions in your own area before using healthcare services.

How Long Can You Stay In Spain If You Own A House There?

Yes, thanks to the golden visa scheme, you can obtain residency in Spain after purchasing a home. Since 2013, non-EU citizens who buy a property in Spain can obtain a 2-year residence permit (which can be renewed) if the property investment is at least € 500.000.