Home Insurance

Home Insurance

Whilst not obligatory in Spain, most people choose to insure their home - it's usually the biggest investment they make in their lives.

Also, in the event that your property has a mortgage, the bank will usually insist on the building being insured, and the bank's interest being noted in the policy. Be aware that banks cannot insist that you use their insurance provider, and in any case, it's far better to shop around.

Many variables will be taken into account when it comes to insuring your home. When the home is overseas and in a country which you are not so familiar with, you need to be sure that all aspects are covered in your insurance policy. The following checklist should help you make sure you get the correct cover;

• Sums insured - many issues with claims are caused by incorrect sums being covered in the first place. So make sure that your buildings are insured on a full reconstruction basis, and contents and personal effects on a replacement-as-new basis.
• Security - make sure you describe your security system to insurers accurately, as if you declare that the property is fitted with an alarm which is not connected and you are burgled, then insurers can either turn down the claim or reduce your payout.
• Scope of cover - policies in Spain tend to be on "defined risks basis" as opposed to British "all risks" policies. Make sure you choose the right policy for your circumstances.
• Objects of value and jewellery - if you need cover for these items, make sure your Insurer is aware of this and provide them with an inventory of the items to be insured, together with a valuation for each item.
• Liability - Spanish policies tend to have far lower limits than overseas policies, but the "blame culture" is changing in Spain, and courts are seeing an increase in claims and settlements, so make sure your policy provides an acceptable limit.
• Use of the property - if your property is also available for rental to third parties, make sure that your insurer is aware of this.