How a Spanish Home Policy Works: Rules, Rebuild Value and the Consorcio

Is home insurance compulsory in Spain?

For owner-occupiers, no — it isn't a legal requirement. But there are two important caveats:

• Mortgaged property: if your home has a Spanish mortgage, the lender will require buildings cover (continente) for the life of the loan, with the bank named as beneficiary.
• Apartments: your community of owners (comunidad de propietarios) must hold buildings insurance for the shared parts under the Ley de Propiedad Horizontal — but that covers communal areas only. Everything from your front door inwards is your responsibility.

So while it's rarely a legal obligation, going without it is a real gamble given the fire, flood, theft and neighbour-liability risks involved.

Continente vs contenido: buildings and contents

• Continente (buildings) — the structure: walls, roof, floors, fixed installations (plumbing, wiring, fitted kitchens and wardrobes), plus the pool, perimeter walls and outbuildings.
• Contenido (contents) — everything that would fall out if you turned the house upside down: furniture, appliances, electronics, clothing and valuables such as jewellery (usually subject to a sub-limit).

A homeowner normally needs both. A landlord letting an unfurnished flat may only need buildings cover.

British and Irish owners often call this house insurance or household insurance. In Spain it is a single regulated product, the seguro de hogar. This page explains the rules behind it. For what the product actually buys you, read our page on house insurance and household insurance in Spain.

The cover we arrange is the Generali Hogar Premium policy. On contents, claims are settled new-for-old — you're paid the full replacement cost as new today, not a depreciated value. As standard, it also includes family civil liability (responsabilidad civil familiar) of €300,000, extendable up to €1,000,000, which protects you if a member of your household accidentally injures someone or damages their property — and a 24-hour home emergency service for plumbers, electricians, locksmiths and other urgent callouts.

The biggest mistake British owners make: insure at rebuild cost, not market value

This is the single most common and costly error. Your buildings sum insured should be the rebuild cost (valor de reconstrucción) — not what you paid, and not what the property would sell for. Land has no rebuild cost, so on the Costa Blanca the rebuild figure is often only 50–70% of the purchase price.

Why it matters: under Article 30 of Spain's Insurance Contract Law (Ley 50/1980), under-insuring triggers the regla proporcional (proportional rule). If you insure for only 60% of the true rebuild value, the insurer pays only 60% of any claim — even a partial one.

Example: a villa that costs €300,000 to rebuild but is insured for €150,000 (50%). A €100,000 fire claim is settled at just €50,000.

Insure too high and you overpay premiums for years yet still can't claim more than the rebuild value. The fix: set the correct rebuild sum at the outset and review it annually — a good broker will calculate this for you.

Who pays for floods and earthquakes? Meet the Consorcio

Wildfire is the exception people get wrong. A forest fire is an ordinary risk, so it is paid by your own insurer and never by the Consorcio, however large the fire. Our report on Spain’s 2026 wildfire season sets out what burned in each province and exactly which policy heads settle a fire claim.

Here's a surprise for most expats: catastrophic natural events are not paid by your home insurer. "Extraordinary risks" — major flooding (such as the October 2024 DANA in Valencia), earthquakes, severe windstorms (sustained winds over 120 km/h), terrorism and riots — are covered by the Consorcio de Compensación de Seguros, a state-backed body funded by a small levy already included in every Spanish home and car policy.

You don't buy Consorcio cover separately — it's automatic. After a declared event you claim through the process at consorseguros.es. For everyday perils — a burst pipe, a storm-damaged roof tile — it's your own insurer who pays. For the full picture — how the surcharge works across all your policies, exactly what counts as an extraordinary risk, and how to claim — see our dedicated guide to the Consorcio de Compensación de Seguros.

Squatters (okupas): what insurance can and can't do

You can add squatter (okupa) legal-expenses cover of up to €6,000 to your policy, which covers the legal costs of eviction. It's well worth having: eviction proceedings under Real Decreto-ley 7/2019 can take 12–24 months. Note that holiday guests who overstay are a contractual matter — not criminal squatting — and need separate legal action. Squatter cover is one of the options we can arrange on a home insurance policy. For the full breakdown — the criminal vs civil eviction routes, what you can and can't legally do as the owner, and the 13-row chart of exactly what HU2 pays — read our dedicated Squatters' Rights in Spain homeowner guide.

Unoccupancy rules: how long a Spanish home can stand empty

If your Spanish property isn't permanently occupied, you must declare it — and the rules depend on the property type. A standard or permanent-residence property is covered in full for vacant periods of up to 30 consecutive days. A declared holiday home is allowed up to 180 consecutive days unoccupied. Beyond the declared limit, only theft cover is suspended — fire, water damage, liability and all other sections stay active. It's still sensible to turn the water off at the mains, set frost protection in winter and have the property checked periodically.

If you let the property short-term as a Vivienda de Uso Turístico (VUT), you must declare the commercial use — undeclared holiday lets are one of the top reasons Costa Blanca claims are declined, and a VUT licence makes guest-liability cover compulsory. See our dedicated page on tourist rental (VUT) insurance in Spain if you take paying guests, holiday home insurance in Spain for a second home kept for family use, landlord insurance in Spain for long-term lets, and static caravan insurance in Spain for a static or mobile home.

Apartments and community insurance

If you own a flat, your community insurance (under the Ley de Propiedad Horizontal) covers the building's shared structure and common areas — not the inside of your unit. You still need your own buildings and contents cover for everything from your front door inwards. We also arrange community insurance for comunidades de propietarios.

What's usually excluded

Common exclusions include gradual wear and tear, long-term damp and mould (as opposed to a sudden escape of water), pet damage, theft without signs of forced entry, and high-value jewellery left outside a safe. Extended unoccupancy beyond the policy limit can also suspend theft cover. Always read the conditions — or ask us to explain them in plain English.

Making a claim: the seven-day rule

Under Article 16 of Ley 50/1980 you must notify your insurer within seven days of becoming aware of damage; late notice can reduce or void a payout. Photograph everything, keep receipts, and don't start permanent repairs until the loss adjuster (perito) has assessed the loss — though you may carry out urgent work to prevent further damage. Under Article 18 the insurer must begin payment within 40 days.

What drives the premium on a Spanish home policy

The rebuild value does most of the work, followed by the contents sum, the location, whether there is a pool, and how the property is occupied through the year. As a guide, annual premiums for a Costa Blanca home with combined buildings and contents cover are roughly:

• Apartment (≈€80,000 rebuild): €180–€280/year
• Townhouse (≈€140,000 rebuild): €260–€380/year
• Villa (≈€220,000 rebuild): €350–€550/year
• Holiday / second home: add roughly 15–25% for extended unoccupancy cover
• Contents-only cover for a flat: from €120–€200/year

These are indicative figures — your actual premium depends on the rebuild value, contents sum, location, pool and occupancy. We'll calculate the correct rebuild value for you at no cost.

Full price tables and the Basic, Plus and Premium tiers sit on the product page. See home insurance in Spain pricing and cover levels for the detail. For a second home kept empty for months, see holiday home insurance in Spain for non-resident owners.

Frequently asked questions

Sources & references

• Dirección General de Seguros y Fondos de Pensiones (DGSFP) — the Spanish insurance regulator.
• Ley 50/1980, de Contrato de Seguro (BOE) — Spain's Insurance Contract Law.
• Consorcio de Compensación de Seguros — cover for extraordinary risks.

This guide is general information, not personalised advice. Cover, limits and conditions vary by policy and circumstances. For advice on your situation, contact Turner Insurance.