Building insurance and content insurance in Spain
This is a very complete and at the same time affordable insurance that insures both your property and your household in Spain but also offers civil liability coverage.
In 99% of the cases, when you buy a house in Spain, you will have to insure the property yourself. If there is an owners Association, it usually only insures the common areas, such as the common parking, elevators, corridors, communal garden, swimming pool and, in case of an apartment, the roof and facade of the apartment complex.
As a house owner in Spain, you shouldn’t insure the purchase value of your property, because it also includes the value of the ground. You only have to cover the construction value of the property itself because the land does not lose value. The best indication is an appraisal report, because the amount of the reconstruction value can vary considerably per home and per region. A general guideline is 1,000 euros per m2 built-up, but in practice this can vary between 750 – 10,000 euros per m2. It is the policyholder’s responsibility to insure the correct value.
We often get the question what the definition of building insurance is? Imagine your house upside down. Everything that sticks, such as the walls, fitted kitchen, built-in appliances, bathrooms, solar panels etc. is considered building Everything that is not attached is automatically content.
It is important to make a difference between general content such as: furniture, clothing, household appliances, electronics and valuable household effects. Items that are considered to be precious assets are: tapestry, paintings, antiques, art and silver / gold / bronze. The individual value of each object must be 2000 euros or more, or in case of a collection it has to have a total value of more than 2000 euros in total. Lastly, jewelry must be insured separately. A difference must be made between jewelry in a vault and outside a vault. The insured value of all insured content should be based on the replacement value.
Make sure the insured value is sufficient. The insurer may pay proportionally and you will receive less then you would expect in case of underinsurance during a claim.