Frequently asked questions.
Change your locks!!! This is not a frequently asked question but advice.
- If it is a new build property then not only do you now have a set of shiny new keys but so might half a dozen estate agents, builders, plumbers, site foremen and other tradesmen.
- If it is a second hand property then not only do you have a set of keys to the property but so do half a dozen estate agents, possibly the old owners friends in case they got locked out, one or two rental agents who have looked after the property, several family members who holidayed there, etc… etc…
- If it’s your property and you have previously let the property then please change the locks. How many people now have a copy of the key to your front door?
We know of people who having moved all their newly purchased furniture into their recently completed Spanish property went for a well earned lunch. On their return the property had been emptied and there was no sign of a break in!! New fridge, television, beds, the lot. If there is no sign of a break in then most insurance companies will only pay out a very minimal amount if anything at all.
Do I have to have my Spanish home insurance with my mortgage lender?
This is a commonly asked question and nearly always the answer is no, you don’t.
You can choose who to have your home insurance with. Like all the Spanish banks they are keen to sell their product or the product of their insurance provider and many staff and managers receive a financial incentive from these sales. It is not against the law for a bank to ask you to have home insurance but it is against the law for a bank to insist you have their product or their agent’s product. Often, the Spanish banks own insurance products are more expensive than shopping for them from a third party. Many bank employees will argue that you must have their product and you cannot cancel it. Nearly always this is either a misinformed member of staff or someone over zealously trying to protect their insurance business. If they insist you have the insurance with them you may need to remind them of the law.
I have no idea what home insurance cover I have as the bank never sent me a policy document. How can I find out?
In our experience banks or their insurance agents rarely send these documents to you. What you might receive is a receipt by post stating the premium has been paid, the policy number and a very brief description of the amount of cover. If you do not live in Spain permanently you will find that generally they will not post the documents to the UK. To obtain the policy and terms and conditions you will have to call into the bank branch in Spain or send an email. If you are not in Spain then you will need to provide them with a Spanish postal address for them to send it to or pick it up on your next visit.
Please be careful. Very few times do we hear of a bank employee asking a client about the home cover they require when selling it. This means they have no idea what security measures you have at the property, level of contents etc… Sometimes they will sell you buildings cover that will repay a mortgage you might have with them but nothing else. Please check any existing policy carefully and that it meets your needs.
How do I calculate the amount of buildings insurance I need?
This should not be confused with the market value. The market value includes the property itself as well as the land upon which the property is built. If the property was destroyed you will not need to buy the land again. You will need to budget for the rebuild costs, clearance of the site, submission of documents etc… The figure can be found in the valuation you had carried out when you bought the property. If you believe this is now out of date then ask your neighbours if they mind telling you or even better we suggest asking a professional valuer to update the valuation.
How do I calculate the amount of contents insurance I need?
Well, this one is easier. You should walk slowly from one room to the next taking note of what you have in your house and applying a value to it. Once you have gone through the house you can add up the figure and that’s your contents insurance requirements. With Spanish home insurance don’t forget to include the kitchen units etc… in the contents cover whilst the bathroom generally falls under the buildings cover. (Check with your provider).
Is rising damp covered?
If you have only recently bought a property in Spain you may not realise this can be a problem here. Many properties, especially in Andalucia do not have any damp proofing and with single brick walls, concrete floors and a wet winter damp can be a problem. Some companies will cover rising damp but only if certain damp proofing measures were taken when the property was built. Again, if this is a major concern for you then please check with the provider.
Will the company provide the terms and conditions in English?
Several companies will now provide a copy of the terms and conditions in English. This will be a translation of the Spanish terms and conditions and in the event of any discrepancy the Spanish version will be the one used to settle any disputes whether with the insurer directly or in a court of law.
Is Spanish home insurance the same as UK home insurance?
Yes and no. What we mean is that in the main, i.e. if the house burns down and is destroyed and you asked for fire damage cover then a claim proceeds. If someone clearly forces entry to your property and steals something covered by the policy then there is also a justifiable claim. However as you would expect, the insurance policies in Spain have been designed and developed in a Spanish market place, subject to Spanish insurance law, Spanish insurance companies experience of claims from policy holders and Spanish customer market forces. This means that you might not get an exact replica of the home insurance policy you have in the UK. For example, you might find it difficult or expensive to obtain accidental contents cover or it could be more limited. However, you can generally get terms and conditions in English to help you decide on what is and what is not covered.
I have been told I cannot cancel with my existing provider. Why not?
Insurance law in Spain is different to the UK as it differs from Germany or France. This is why you should always make sure you understand what you are buying. One of the differences is the insurance providers in Spain have a clause in their policies that states that either the client or the insurance company can cancel the policy before the renewal date but only if they give written notice at least two months beforehand. Example, if your policy expires on the 30th December then the insurer or their agent must have received your cancellation instructions on or before the 30th October. This must be an originally signed letter and not a fax or email (they may decide to accept either a fax or email but are not obliged to). Send the signed letter ‘certificado’ and keep a copy of the signed letter attached to the ‘certificado’ receipt for safe keeping.
Can I take out home insurance for a Spanish property with a UK insurance company?
Yes you can. The benefits are that they speak your language and the policy may be more UK client focused. Most will only insure second/holiday homes so if you are permanently resident in Spain you will need to use a Spanish insurer. Several Spanish insurers now have terms and conditions in English as well as English speaking staff.
