Before you start: home insurance ins and outs
Check whether your new property is eligible. In general, all property types are covered, from cottages, villas, and apartments to static caravans. Areas prone to natural disasters make insurers wary. Flooding is the most common problem in Spain, although it’s rare. Ask your property lawyer if you’re concerned.
Then figure out what you need to cover in your policy. Do you have grounds, sports equipment (like a pool, golf buggy or tennis courts) or specific contents you want to include? Doing an accurate contents valuation is key to getting the right price for your coverage.
Then check that you’ve done all you can to secure your home. Could you fit an alarm, update your locks, install a safe or join a neighbourhood watch scheme? When a home insurer sees you doing due diligence to keep your property safe, they will factor that into their quote.
Now all that’s left is to find a few appropriate quotes. If you have a Spanish mortgage, the bank may insist that you at least take out buildings cover. However, even if your mortgage provider suggests one particular insurer, you are not bound to them and may get a better deal if you shop around.
01 International Home Insurance
Who’s it for? People relocating to Spain to live in the property.
This can be either buildings insurance, contents insurance or buildings and content insurance combined. Buildings insurance only will cover any damage to your property (and your mortgage provider may insist on this type of coverage), whereas contents insurance only makes sure all the items you keep in the house are covered. The latter is useful if you have unusual items you want covered or if you want your policies to come from two different insurance providers. The most cost-effective and secure policy is combined buildings and contents cover. You may want to include emergency travel or temporary accommodation costs so that if you need to get your home repaired, you can either pay to fly home or live somewhere else for the period of building works.
02 International Holiday Home Insurance
Who’s it for? People with second homes that stay empty for long periods, second homes they intend to let, or investment properties.
Many home insurance policies won’t cover damage that occurs if a property is left vacant between 30 or sometimes up to 60 days. A holiday, or second home insurance policy can include buildings insurance and contents insurance but waives this stipulation. If you further intend to rent the property for either long or short term lets, than additional malicious or accidental damage and theft insurance, insurance against loss of rental income, public liability and employers liability insurance to cover people working at the property for you, like a cleaner for instance, and also insurance against legal disputes with tenants might be advisable bolt-ons.
03 Other types of insurance to consider
You may well want to protect your mortgage payments with mortgage insurance. This can cover your loan repayments if you become unwell or lose your income.
Life insurance is an important consideration especially if you share the responsibility for your assets with somebody else.
Private health insurance is another thing to bear in mind. There is a comprehensive subsidised health care system in place for Spanish residents and EU nationals. However, medical insurance would help you to see a bilingual doctor, get quick access to senior consultants, or have a cosmetic or other procedure not covered by the state.
Vehicle insurance, as in all EU countries, all roadworthy vehicles in Spain must have, at the very least, third party liability insurance.
If any of your circumstances change; changing a lock or replacing a window might make all the difference when it comes to annual costs and payouts.
Time to sign
When you’ve tailored the right international home insurance policy for your new property in Spain, then make sure you’ve read the terms and conditions carefully, that you’re aware of any exclusions, and that you can afford your excess.
Rates are usually cheaper if you make an annual payment. Be sure to let your insurer know if any of your circumstances change; changing a lock or replacing a window might make all the difference when it comes to annual costs and payouts.
