What Home Insurance Do I Need for Owning Properties in Spain

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Home Insurance in Spain

If you are considering buying property in Spain, you will have to take out insurance for the same. This applies to both residents and non-residents and if you have a mortgage, banks will make sure that you have taken insurance. Insurance in Spain is quite similar to that of other countries in Europe, more or less. There are, however, some issues and differences that one should watch out for so as to be able to get a good deal from an insurance company.

To own property in Spain, the ideal insurance to take is the home insurance. This type of insurance is of two kinds: buildings cover and contents cover. You can opt for either or both.

Buildings Cover Insurance in Spain

This can also be referred to as buildings insurance. This type of insurance covers the property’s structures and all fixtures. It insures against loss or damage to property as a result of an explosion, lighting, fire, floods, frost damage, storms, earthquakes, impact from falling trees and leaking water, accidental breakage of fixed glass, theft, malicious damage, and many more.

This cover is based on the insurance value of one’s property, which is not similar to the market value for the same property, or what was paid for. The building and the fixtures are covered, but not the land where the property is located, thus explaining the difference. The insurance policy you take is founded on the costs it takes to reconstruct your property, and not how much it will cost to purchase it afresh. The ‘reconstruction’ value is calculated using the standard tables of building cost per square meter. If the property’s building specifications are high, the insurance value and the premiums as well will be high.

Contents Cover Insurance in Spain

Contents cover or insurance covers damage or loss of contents caused by similar factors as those covered by the buildings insurance. This type of insurance covers personal holdings that are not a part of the fixtures or the property. These are basically any items that are not screwed in or nailed down, for instance, jewelry, artwork, computers, and furniture. The total cost of the cover depends on how secured one’s property is. If a property has very strong security qualities such as alarms, shutters, and doors, the premiums will be lower.

When taking any of these home insurance covers, there are a number of things you need to bear in mind. One is the fact that the payment structure might be a little bit different from what one is used to. Insurance payment in Spain is done in big portions such as quarterly, annually, or biannually. This is mainly so because of the country’s structure that has an eight-week duration which gives a person an opportunity to overturn an expenditure decision if it entails a direct debit. The other thing you need to remember is that cancelation of a Spanish insurance needs to be straightforward and the insurance company should be informed two months prior to the renewal date. The intention to change should also be done in writing.