A GUIDE TO BUILDINGS & CONTENTS INSURANCE FOR PROPERTY IN SPAIN & PORTUGAL.
BUILDINGS INSURANCE GUIDE
SPAIN & PORTUGAL
A COMPREHENSIVE GUIDE TO BUILDINGS INSURANCE IN SPAIN
What is buildings insurance?
Buildings insurance is something you will need if you have purchased a Spanish property by way of a Mortgage or Bank loan. Banks and mortgage lenders in Spain will insist that you have buildings protection cover in the way of an insurance policy. The buildings insurance will provide protection to the banks so that they know that if something were to happen to your buildings or property, the insurance will provide rebuilding costs. Therefore, the risk the bank is taking, by lending you the money against that property, is properly protected.
We would advise all property owners NOT to use Building insurance policies offered by your local Bank in Spain. These tend to be very expensive and poor cover. The local Spanish Banks are only interested in protecting their loan or mortgage to you. Some Banks are pressurising clients, by way of a mortgage penalty, to take out their own insurance products. If this does occur, please report it, as this has now been deemed illegal in Europe.
Buildings & contents insurance in Spain.
Most Insurance Companies in Spain offer a combination of Building and Contents insurance for all types of property. By combining the two on the same policy, premiums tend to be cheaper than just having buildings insurance. Buildings insurance only, will usually apply to those people that just need the building insured as they are renting a property unfurnished, or if there are no contents in the building.
Catastrophic events – rebuilding insurance.
The costs of rebuilding your property, in the event of a catastrophic event, or repairing the building after a storm or flood, earthquake, tsunami and similar events, and what we would call an “Act of God," would normally be covered under the Consorcio de Compensation de Seguros.
WHAT DOES BUILDINGS INSURANCE IN SPAIN COVER?
A building is defined as follows: -
All foundations, load bearing walls, floors, walls partition walls, ceilings or roofs, doors, windows, built in wardrobes including glass panes inserted in them, awnings and shutters.
Private Garages, parking spaces or storage rooms, even when located outside the space delineated for the home, constituting an integral part of the building where the home is located or situated in the same plot or on the same terrain as the home, and with construction features similar to that of the main building.
Installations such as water, heating, sanitary ware, air conditioning, electricity and gas installations, including the connections to general distribution networks. Solar energy, wind energy and telephone installations, provided they are located on the property on which the home is located.
These are the elements required to operate the heating, refrigeration, air conditioning and sanitary installations such as boilers, accumulators, radiators and refrigeration and cooling devices, provided they have been fixed and are permanently installed in the building.
These include such things as stairs stair lifts, lifts, and radio and television antennas and receiving antennas.
Integral Parts of the home.
Fixed, decorative or ornamental items attached to the floors, ceilings or walls, such as paint, wallpaper, fabric, carpet or parquet, etc., that form part of the home and belong to the insured.
Outdoor property insurance cover.
Any garden areas, fences and earth retaining walls independent from the building , as well as sports areas, swimming pools and fixed installations such as pool pumps and changing rooms are included.
If the insured is the co-owner of the property, the insurance cover also includes the coefficient that may affect the undivided property.
Garages and Parking spaces.
Garages and parking spaces that belong to the insured and are located outside the insured home or building, may be included as part of the building insurance, provided they are expressly declared in the contract and are located in the same city or town.
Any modifications made to the home in order to make it more suitable for use by disabled or handicapped persons will be included.
Building refurbishment work.
If the insured is the tenant and/or usufructuary (someone who has the right to live there) the buildings cover shall include (up to the sum insured on the insurance schedule or contract) fixed decorative or ornamental elements attached to the floors, ceilings and or walls, such as paint and wallpaper, fabric, carpets or parquet etc., as well as the fixed installations for exclusive use that form part of the home and were installed at the expense of the insured tenant with the consent of the owner of the building or home.
Material Damage or loss to the property.
The property will not be covered for more than you have insured it for. That might sound obvious, but if you are under insured or over insured, there are consequences, so make sure you are insured for the correct amount.
Fire Insurance cover.
Fire is covered if a fire is started by accident, unknown individuals or negligence on the part of the insured or by individuals he or she is liable for.
Explosion insurance cover.
Direct material damage caused to the insured property by an explosion is covered. The internal explosion of boilers, water heaters, fixed installations and piping is also included.
Lightning strikes on the property that cause any form of material damage belonging to the insured property is covered.
Risks due to forces of nature.
These are covered as long as the claim resulting from risks such as rain, wind, hail, snow or frost are not considered extraordinary under the current legislation, and that these events are abnormal for the season and the area in which the insured home is located.
CONSCORCIO DE SEGUROS | WATER DAMAGE INSURANCE | FLOODING INSURANCE IN SPAIN
CONTENTS INSURANCE IN SPAIN | HOLIDAY HOME INSURANCE IN SPAIN
RENTERS & LANDLORDS INSURANCE IN SPAIN | MOBILE HOME INSURANCE IN SPAIN
CARAVAN INSURANCE IN SPAIN | ALL RISKS INSURANCE IN SPAIN
JEWELLERY AND VALUABLES INSURANCE IN SPAIN
OVER AND UNDER INSURING YOUR PROPERTY IN SPAIN
HOME INSURANCE INDEX.