Do you want to protect your Spanish home from risks such as damage and burglary? We explain home insurance in Spain and how you can get cover.

Spain is a popular destination for expats, with more than 12% of its population born abroad, and many people are attracted by the warm climate and good quality of life. However, to ensure that your dream life under the sun is not ruined, you’ll need to think about protection against risks such as fire or burglary.

Unlike some other types of insurance in Spain, home cover is not a legal requirement when it comes to building or contents. However, many residents take out a policy to cover their worldly goods for peace of mind. This guide explains what you need to know when it comes to choosing good home insurance cover, with sections on:

Overview of home insurance in Spain

In Spain, there are usually two types of home insurance (  seguro de hogar  ):

  • Contents insurance (  seguro de contenido  )  , sometimes known as renters/tenants insurance, protects all movable assets such as furniture and valuables
  • Buildings insurance (  seguro de construcción  )  covers immovable property, including walls, floors, ceilings and any internal equipment.

Neither contents nor buildings insurance is compulsory in Spain, although it is recommended, especially if you have expensive possessions. They can usually be purchased as a combined package, often referred to simply as home insurance. Most forms of home insurance in Spain usually include liability insurance. If not, you can usually add it as an optional item.

In 2020, the home insurance sector in Spain was worth more than  €4.6 billion  , making it the third largest non-life insurance in Spain after car insurance and health insurance. However, an estimated eight million homes across the country do not have property insurance.

The General Directorate of Insurance and Pension Funds (  Direccion General de Seguros y Fondos de Pensiones – DGSFP  ) regulates  the insurance market in Spain  . All companies must operate within the law or face heavy fines or worse.

Can you use home insurance in another country in Spain?

There are no laws in Spain that prohibit home insurance abroad, so you can do so if you have purchased an extended cover policy that includes protection abroad. Some insurers are willing to provide contents insurance that covers other countries. However, companies usually only offer buildings insurance for homes abroad if they have products designed for expats, such as vacation home insurance.

If you are moving to Spain , you may be able to transfer your existing home insurance policy to the new property if your insurance provider operates in Spain. All insurance companies in the EU/EFTA can trade in Spain as long as they comply with  EU guidelines  . However, your insurer will want to recalculate your premium based on your new property and the associated risk factors. They may also charge an admin fee. Check the terms and conditions with your current provider if you intend to do this.

Spanish home insurance companies

With the Spanish home insurance market so lucrative, it should come as no surprise that there are several insurers to choose from. Indeed, the number of companies can be confusing at first. However, be sure to do your research and make sure you get the right coverage for your home. 

Some companies offer deals specifically for expats living in Spain, such as Liberty and Caser. However, many insurance companies usually only offer policies in Spanish and this may be something you need to consider.

Many Spanish banks also sell insurance products, including home insurance, so it’s worth shopping around for them.

Home/Landlords Insurance in Spain

Property insurance (  seguro de contenido  ) is also known as renters/tenants insurance (  seguro de inquilinos  ) in Spain. That’s because it’s a common purchase among renters, who typically don’t need building insurance. However, property insurance is often sold together with building insurance to Spanish homeowners.

Property insurance in Spain is optional and the tenant is responsible for insuring their belongings. Packages tend to vary significantly between companies. However, most will have at least two levels of coverage (standard and all risk) or will offer a standard plan with the option to choose the extra coverage you need.

Standard plans protect against fire and water damage. They also often include electrical damage, theft, vandalism and liability coverage. General exclusions are limits on the total value of contents you can cover, valuables such as expensive jewellery, items kept in gardens and damage caused by accidents or negligence.

All risk insurance plans, sometimes called full comprehensive insurance, usually include almost everything. This means risks such as damage caused by negligence, removal of property from the premises, vehicles such as bicycles and boats, and emergency and legal costs. They also have higher payout limits for valuables. However, there are still limitations. For example, you won’t be able to make a claim for willful damage or damage to road vehicles, as cars require separate insurance .

Home insurance costs

As with all types of insurance in Spain, the amount you pay for your home contents cover depends on various factors, including the value and condition of your belongings, the level of cover you take out, your location, the risk factors involved with your property, and your individual insurance profile.

Typical prices are around €75-€100 per year for basic policies. Expect to pay around €125-€200 per year for all risks. It can be more if you are insuring valuables. Many companies have cost calculators on their websites, such as this one from  Liberty  .

Insurance of buildings in Spain

You can usually buy building insurance (  seguro de construcción  ) in Spain as a separate policy. Some companies may include it in the home insurance category (  seguro de hogar  ) and sell it as a basic policy option that covers the structure of the property but not the contents.

Some companies also sell certain types of building insurance, such as for flats in council houses, listed buildings or properties that have not been occupied for a long time.

Building insurance is popular among landlords who rent out unfurnished premises. Some homeowners may also insure only their building and not its contents. Spanish mortgage lenders may insist on minimum building insurance coverage.

Similar to property insurance, it is common to find several different levels of building insurance coverage. Basic plans will protect internal and external walls, ceilings, floors, attics and usually bathroom and kitchen units from fire and water damage. Some basic policies also include coverage for electrical damage and civil liability. Common exceptions are damage due to negligence, earthquakes and garden fixtures such as sheds and swimming pools.

An all risk policy will consider all of the above and may also include heating and air conditioning units, drainage systems, and fixed lighting and sound equipment. Most policies cover the cost of full renovations, while basic policies often have limits on the amount of coverage and may only pay for repairs and not replacement of some structures.

The cost of building insurance in Spain

The cost of building insurance in Spain depends on factors such as the age of the building, size, value, condition, location and materials used. The insurer may also ask you questions about any security systems you have installed, as well as the primary purpose of the building (eg primary residence, secondary residence).

Costs usually start at around €100 for basic plans, but can reach around €400-500 or more for all-inclusive insurance for a large detached property. Check costs with a calculator like this one on  Caser’s website  .

Combined home insurance in Spain

Combined insurance is the most popular type of home insurance in Spain. Commonly called simply home insurance (  seguro de hogar  ), or sometimes household insurance, it includes coverage for both the building and the property. You usually get liability coverage for this. Combined insurance is particularly suitable for owners who have bought a property in Spain in which they intend to live.

You can usually save around 10-20% by buying combined home insurance in Spain compared to the cost of buying two separate policies. Use a quote simulator like this one on  Liberty’s website  to get a quote and compare it to individual building and contents insurance quotes.

Liability insurance in Spain

Liability insurance in Spain covers your costs in the event of an incident that causes injury or damage to third parties or their property, in your home or through your property. It can cover legal costs, medical costs, property replacement costs and even burial costs in the event of a fatal accident.

In Spain, liability insurance is usually part of your home insurance. Some basic policies may not include it as standard, but you can usually add it to increase your premium. The maximum amount of liability coverage varies from around €300,000 for basic insurance policies to €1-5 million for all-risk insurance plans.

People in Spain do not usually take out personal liability insurance, unless they are running a business or have a professional activity. Not many insurance companies sell non-business liability insurance. Santalucia is a doer. If you want to take out a personal liability policy, you can get a price  calculator here  (in Spanish).

How to choose home insurance in Spain

Choosing the right home insurance in Spain is all about weighing up all the factors that are important to you. Here are some things you may want to consider in addition to the annual premium:

  • How much the company pays in the event of a claim.
  • Can you adjust your policy so you don’t pay for coverage you don’t need and lose anything you do.
  • Any bonuses, discounts or incentives, such as no-claims bonuses or gifts for new customers.
  • Company reputation: what are the customer reviews and what do online review sites say?
  • How easy is it to file a claim or cancel a contract?

In addition, you can also check how companies are doing in terms of sustainability, ethics and corporate social responsibility. You can check if a company is registered and how it works on sites like  EcoVadis  and  CSR Hub  .

Applying for home insurance in Spain

As a rule, each company has its own application procedure. However, with most large firms, you can start by filling out an offer form and work your way up. Depending on your needs, a local agent may contact you to discuss your requirements and guide you through the process.

The length of the process depends on whether you take out a combined policy with building insurance. In this case, you will usually have to provide detailed information about the property, such as age, size and condition. Your insurer may ask you to provide a professional appraisal.

To take out your insurance, you’ll usually need to provide your address, proof of identity, your NIE number and bank details for payment. The Company will send you the policy and related documents by email or post. Most policies will last at least twelve months and may automatically renew unless you cancel within the notice period.

How to apply for home insurance in Spain

If you need to apply for home insurance in Spain, you should contact your insurer as soon as possible. Your insurance company should provide clear details of the claims process when you take out the policy. Generally, you will have to call them or send them an email. Most companies require you to file a claim within seven days of the incident.

You will need to complete a claim form and include your policyholder information, policy number and details of your claim. You can send photos if you are reporting damage. In the event of a burglary or criminal damage, you will usually need to file a police report. Your insurer will likely provide you with a claims number and assign you a representative.

Simple claims are usually processed within a few weeks. If you have questions and need to provide additional information, it may take longer. According to Spanish law, you must receive compensation within three months from the date of the incident.

Termination of the contract or change of supplier

You can cancel the contract or change the insurer in Spain if you find a better offer or if you are not satisfied with the existing services. Each company has its own terms of termination. The notice period can be from 15 days to three months. If you have a fixed term policy, you may have to pay a cancellation fee unless you have good reason to cancel.

Many home insurance policies in Spain automatically renew unless you give advance notice of cancellation. As a general rule, you need to write to the company informing them of your decision and giving reasons. The insurer has the right to refuse to extend the contract if there is a good reason and to warn you in 15 days.

Filing a complaint against a Spanish insurance company

To complain to a Spanish insurance company, follow these steps:

  • The first step  is to make a written complaint to the ombudsman or the customer service department of your insurance company. Your insurer must provide you with information about its ombudsman. If not, you can find them on   the DGSFP website  .
  • Step two  . If you are not satisfied with the response or do not receive a response within two months, you can file a complaint with the DGSFP. They will assess the complaint after contacting the insurer and issue a report stating whether they believe the company has complied with the law.
  • Step three  . Your last option, if you’re still not satisfied, is to go to court. You can also go to court before filing a complaint with the DGSFP. However, keep in mind that you are responsible for legal costs.

Insurance of holiday homes in Spain

Many people own holiday homes in Spain. As a result, many Spanish insurance companies offer holiday home insurance, sometimes called second home insurance (  seguro de sefunda vivienda  ). You can also find quotes from overseas insurance firms and holiday home insurance specialists such as  IntaSure  in the UK.

Vacation home insurance usually includes the same coverage as a regular home, but you can usually insure against specific risks associated with a second home, such as protection against loss of rental income.

Useful resources

Home insurance in Spain: property, contents and liability