Insurance in Spain. How to protect yourself and your Spanish property
It is, of course, essential to arrange suitable insurance cover for your Spanish property whether it is your main residence, holiday home or a holiday let. When exchanging contracts you will require proof that a suitable policy of buildings insurance in Spain is in place. Banks lend money on the condition your Spanish villa is adequately covered.
What type of insurance do I need for my Spanish villa?
Building insurance should cover your entire Spanish property including:
- The actual structure of the home
- Outbuildings
- Swimming pools
Ensure that the sum insured for covers the cost of rebuilding the Spanish property. Ask a local builder or surveyor to provide an insurance valuation.
If your Spanish villa is a holiday home then insurers will regard it to be a higher risk as they are often left unoccupied for long periods.
Lenders will require proof that your Spanish villa is covered by both home owners insurance and life insurance before supplying a mortgage. Home owners insurance usually covers contents but you should always find out exactly what you are covered against.
It is very important that your policy includes public liability insurance if you are planning to let your Spanish villa as a holiday home. Liability insurance will cover you for legal costs and expenses following death, injury or damage to a third party on or near your property.
Insurance in Spain or UK for my Spanish property?
Whichever policy you go for it is important that you read the small print so you understand the scope and restrictions of cover. This obviously presents a problem and unless you are fluent in Spanish it is vital to employ a translator if opting for insurance in Spain.
Policies offered by European insurers tend to be cheaper but also tend to be much more limited than UK policies. You may be better off choosing a comprehensive policy that is written in plain English and specifically designed for Spanish property.
Some of the larger UK companies such as Direct Line have moved into the market for insurance in Spain. A number of UK owned banks offer a wide range of personal products to their clients seeking insurance in Spain.
Medical insurance in Spain
One of the largest forms of cover taken out by Brits buying Spanish property is private health insurance. This allows those moving to a Spanish villa to protect themselves and dependants in the event of injury or illness.
Similarly, life insurance provides a lump sum payment on death which can be used to protect a liability (such as a mortgage on your Spanish home) and give peace and mind to relatives.
More information about insurance companies operating in Spain can be found in our Service Directory.
If suitable cover is arranged prior to leaving the UK it remains valid whilst living in your Spanish villa. Your Spanish property is a big investment and it is vital to plan for contingencies, whether you take out insurance in Spain or the UK.
