Home Insurance Spain for Expats

House Insurance in Spain. Key Facts, Limits & Exclusions

The legal framework, specific waiting periods, exclusions and citations every prospective policyholder should know. Sources are linked inline to the BOE (Boletín Oficial del Estado) and Spanish regulators.

Legal framework

Home insurance in Spain is governed by Ley 50/1980 Articles 45–82 (general property and Seguros Multirriesgo). It is not legally mandatory for owner-occupiers, but Spanish mortgage law (Ley Hipotecaria) effectively requires buildings cover (continente) for any mortgaged property. Apartments in a Comunidad de Propietarios are also indirectly affected by Ley 49/1960 LPH which covers communal areas — buildings cover for the individual flat is still your own responsibility.

Buildings vs contents — what each covers

Continente (buildings) covers the structure:

• Walls
• Roof
• Floors
• Fixed installations (plumbing
• Electrical
• Fitted kitchens)
• Pool
• Perimeter walls and outbuildings. Contenido (contents) covers everything that would fall out if you turned the property upside down — furniture
• Electronics
• Clothing
• Jewellery (typically up to 20% of contents sum)

The most common error is to insure at market value instead of rebuild cost; rebuild cost is typically 50–70% of market value on the Costa Blanca because land value is excluded. Under-insuring triggers the proportional rule (regla proporcional) under Ley 50/1980 Article 30 which reduces every claim payment by the same proportion you under-insured.

Extraordinary risks: the Consorcio

In Spain, extraordinary risks — flooding (inundación extraordinaria), earthquakes, severe windstorms (>120km/h sustained), terrorism, riots, falling celestial bodies — are NOT paid by your home insurer. T

hey are paid by the Consorcio de Compensación de Seguros, a public body funded by a small mandatory surcharge on every Spanish home and car policy. The Consorcio publishes a list of declared extraordinary events (e.g., DANA Valencia, October 2024) and pays directly to the insured — claim within seven days at consorseguros.es.

Standard exclusions

Beyond extraordinary risks (which the Consorcio handles), home policies typically exclude: gradual wear and tear (desgaste); damp and mould from long-term humidity rather than a sudden incident; damage caused by pets;

damage by tenants on a rented property unless landlord cover is taken out; theft when the property has been unoccupied for over 30–90 consecutive days (varies by insurer); jewellery left visible outside a safe; and any damage during construction or major refurbishment work over the Sum Insured threshold.

Holiday homes, rentals and unoccupancy

Holiday homes are accepted by Generali and most major insurers but with two key conditions: a maximum unoccupied period (typically 120–150 days/year), and a requirement to maintain installations to a reasonable standard.

For rented properties, a Seguro de Hogar para arrendatarios covers tenant contents and liability; landlords need a separate policy for landlords with rent-loss cover. Squatter (okupa) legal-expenses cover up to €6,000 is available as an add-on — eviction proceedings under Real Decreto-ley 7/2019 can take 12–24 months.

Claim notification and the seven-day rule

Under Ley 50/1980 Article 16, you must notify your home insurer within seven days of becoming aware of damage. Late notification can reduce or void payment.

Photograph damage immediately, keep all receipts, and do not start repairs until the insurer has assessed the loss (or until 48 hours after notification, after which urgent repairs to prevent worsening damage are permitted). The insurer must pay or initiate payment within 40 days under Article 18 — if it doesn't, default interest is owed at the legal rate plus 50%.