House Insurance Policies in Spain
There are different kinds of house insurance that you can have in Spain, and it is compulsory to have one in some cases. In this post we will explain which clauses and covers you must include in your policy in order to suit the multiple needs and requirements of the bank (if you have a mortgage) or your own.
If you have bought a second residence in Spain but you just come a couple of times a year, having a building and contents insurance policy with the minimum covers should be enough.
Another possibility is to insure your property for more than the minimum required amounts; this would be convenient if you come to Spain for long periods of time or if the property is also used for other family members, so the property is occupied for longer during the year.
We advise our clients to take out a house insurance policy for their own property as, normally, the community insurance does not cover any damage you may have inside your property or that you might cause to a neighbour’s property. Of course, it depends on the terms of the community insurance. If you want to be sure, please ask the president of the community or the administrator for a copy and forward it to us, so that we can review it.
We also know that many of our clients have a mortgage on their Spanish property. In Spain is compulsory to have a house insurance policy in case the house has serious damages. The only two compulsory clauses that must be stated in the insurance are the following: first, the fire cover which must be enough to pay the mortgage off, and second, the Right Cession Clause, that means that the beneficiary of the policy must be the bank you have the mortgage with.
The minimum required amount to insure the property is based on the valuation carried out by the bank at the time of approving the mortgage.
You are not obliged to keep your house insurance with one specific company. You can change from one company to another if you wish. The only thing you need to do is give two months written notice to the insurance company to cancel your current policy.
Our team at ABC Solicitors will be more than happy to help you check if your current house insurance policy is correct and enough to suit your needs, and also to see if we can find you a cheaper policy. We could also talk to your bank on your behalf to check if everything is in order with your house insurance.
Please do not hesitate to contact us at any time, we are always happy to hear from you.