Living in Andalucía - Home Insurance

Home Insurance

Whilst not obligatory in Spain, most people choose to insure their home, which in most cases is the biggest investment they make in their lives. Also, in the event that your property has a mortgage the Bank will usually insist on the buildings being insured, and the banks interest being noted in the Policy. It should be noted that Bank's cannot insist on you using their Insurance Provider, and experience shows that it's far better to shop around.

There are many variables when it comes to insuring your home - in particular when the home is overseas and in country in which you are not so familiar. The following checklist should help you make sure you get the correct cover;

Sums Insured - many problems with claims can be traced to having incorrect sums insured in the first place. So make sure that your buildings are insured on a full reconstruction basis, and contents and personal effects on a replacement as new basis.

  • Security - make sure you accurately describe your security to Insurers, as if you declare that the property is fitted with an alarm and this is not connected and you suffer a burglary, then Insurers can either turn down the claim or reduce your payout.
  • Scope of cover - Policies in Spain tend to be on defined risks basis as opposed to the anglo saxon "all risks" policies. Make sure you choose the right policy for your circumstances.
  • Objects of value and jewellery - if you need cover for these items, make sure your Insurer is aware of this and you provide them with an Inventory of the items to be insured together with values for each item.
  • Liability - Spanish policies tend to have far lower limits than overseas policies, but the "blame culture" is changing in Spain, and courts are seeing an increase in claims and settlements, so make sure your policy provides an acceptable limit.
  • Use of the property - if your property is also available for rental to third parties, make sure that your Insurer is aware of this.