Property insurance in Spain

Real estate in Spain is in high demand — many residents of Europe and the USA come here, enticed by the warm sea, a large number of sunny days per year, good healthcare, and relatively affordable living by European standards. But owning your own home implies a great responsibility, so it’s important to anticipate all force majeure situations.

For this reason, it’s useful to know about such a service as property insurance. Let’s say right away: under no circumstances should the importance of the insurance policy be underestimated — it provides a financial buffer against natural disasters and other risks. Let’s delve into all the nuances of home insurance in Spain and answer the question — is insurance necessary?


Property Insurance in Spain




Home Insurance in Spain

Property insurance in Spain is carried out on a voluntary basis. Except for purchasing property on a mortgage, when signing an insurance contract is a mandatory condition for the disbursement of funds. However, banks are not allowed to impose their insurance on clients. The only condition: the insurance from any of the available companies must cover the necessary volume. The bank has the right to offer favorable conditions for purchasing their insurance product in the form of a reduced percentage.


The insurance package will help protect your property from many potential risks:

  • Floods and other natural disasters.
  • Fires and smoke damage.
  • Robbery — will help protect against criminal actions.
  • Damage from third-party actions, acts of vandalism.


Property Insurance in Spain


What does home insurance in Spain cover?

  1. Building structure and its elements: foundation, walls, floors, roofing, engineering networks — “continente”.
  2. Personal belongings located in the house or apartment. Furniture items, household and digital appliances, kitchenware, jewelry, and clothing — “contenido”.
  3. The first and second points in terms of damage from your side towards third parties — “responsabilidad civil”.


The basic insurance package covers damage from fires and natural disasters.

Some insurance companies do not limit themselves to the basic list of risks and offer an “all-inclusive” insurance. Such an insurance package implies that if damage is caused as a result of force majeure not directly specified in the contract but not excluded from the package according to the company’s insurance code, the insurer pays compensation.

Insurance of various types of risks in Spain is widespread and developed both among the native population and among the numerous relocators. Thinking of moving? Consider the possibility of exchanging housing for property in Spain without overpayment.


Property Insurance in Spain


Many national insurance companies operate in the country. In every populated area of Spain, you can see signs with company names and the word “seguros” — these are the offices of insurance agents. Typically, insurance agents enter into contracts with several insurance companies and sell policies for many types of insurance on behalf of different organizations. In the same office, a client can conclude several different types of insurance contracts against various risks, having the opportunity to choose the insurance company, the amount of insurance payments, and, accordingly, the cost of the insurance package. With the help of an insurance agent, you can include exactly those risks that are required. You can pay for the cost of insurance in cash or from your bank account: quarterly, every six months, or once a year.

Each residential space has its own characteristics depending on the type of property. Whether it is used as a permanent residence or rented out to third parties — the insurance package should protect the property from risks.

At times when you invest money in buying a house or apartment, property insurance becomes an indispensable factor. Our real estate agency “M2 Real Estate” can help with the purchase of housing in Spain. The site only has verified listings from real property owners who undergo strict moderation.


Property Insurance in Spain


Types of Home Insurance in Spain

There are several types of home insurance available in the country:

  • Insurance against technical accidents — this pact is designed to protect the home from flooding caused by engineering communications. Pipe bursts, flooding of neighbors, etc.
  • Fire insurance — the insurance coverage is aimed at compensating for damage caused to your housing in case of fire, as well as payments for the restoration of the structure, repairs, and affected items.
  • Insurance against natural disasters — guarantees payments for the restoration of your property in case of natural calamities: earthquakes, floods, hurricanes.
  • Household property insurance — this insurance payment is aimed at compensating for damaged personal property located in the house: furniture, household appliances, electronics. Compensation for damaged or stolen items.
  • Civil liability insurance — protects you from possible risks associated with compensating for damage. Expenses for legal assistance, medical services to a person injured as a result of your property’s actions, or items on it.
  • Theft insurance — the insurance implies protection of the home from burglary and theft. Covers damage to property and expenses for replacing stolen items.


Property Insurance in Spain


How much does home insurance cost in Spain?

Home insurance in Spain is associated with not very high expenses. On average, the annual contribution is from 3 to 5% of the total value of the real estate. The price of the insurance package is not fixed and depends on a number of factors:

  • The cadastral value of the house.
  • Rate plans set by the bank.
  • Provision of additional services.
  • The cost of items and equipment inside the house.


Property insurance in Spain will be cheaper if the house is equipped with fire and security alarms, has reliable doors, and grilles in window openings.


Property Insurance in Spain


The average cost of insurance contributions looks as follows:

  • Defensa Juridica — legal insurance for the homeowner: lawsuits against neighbors, utility services (from 60 euros).
  • Seguro de hogar — insurance against natural disasters, flooding from neighbors, robbery (from 140 euros).
  • Responsabilidad civil — civil liability insurance, unintentional harm to third parties (from 100 euros per person).
  • Seguro de impago de alquiler — insurance against non-payment of rent by the tenant for renting housing (from 500 euros, the cost depends on the rental price in euros per month).


The amount also depends on the chosen insurance company, risks, characteristics, and types of housing (year of construction, number of floors).

In the event of an insurance case, the consideration period should not be more than 40 days.


Is it necessary to insure an apartment in Spain?

Owning property in Spain is a serious investment and a responsible step. If an accident occurs in your home that is not dependent on you, i.e., an insurance case occurs, you contact your insurance company, which immediately sends a specialist to assess the extent of the damage. It is not surprising that every owner strives to protect their home from all possible problems.

A huge advantage of Spanish insurance is the remote format. The owner may be absent from the country at the time of the insurance case. To resolve problems, it is enough to contact your insurance agent by phone and remotely assess the damage. The insurance company takes care of all organizational moments. After the expertise is conducted and completed, the client receives payment to the bank account specified in the contract.


Property Insurance in Spain


To receive quality services, it is important to carefully choose the insurance company. Thoroughly study Spanish legislation and carefully familiarize yourself with all the points of the insurance contract. This way you will protect your property and avoid financial expenses.

You can change the insurance company if you deem it necessary. For this, it is necessary to notify the insurance company within two months before the expiration of the insurance policy. The policyholder has the right to refuse the company’s services at any time, but this does not oblige the insurance company to return part of the paid insurance premium.


And finally — a checklist on how to secure your property in Spain:

  • Install an alarm — an effective way to protect against intrusion into the dwelling.
  • Install surveillance cameras. You will be able to control online what is happening with your property.
  • Install additional locks on windows and doors. This will make it difficult for outsiders to enter your dwelling.
  • Sign a contract with a licensed security service.
  • Install protective grilles in window openings.