Protecting Your Holiday Home or Property Investment in Marbella, Spain
You've finally taken the plunge and decided to buy property in Marbella and live the dream. In some cases, you might have decided to take advantage of renting out your holiday let to reap the benefits of a lucrative ROI. Whatever the reason, the last thing on your mind through all of this excitement is property insurance in Spain. We're here to remind you, and help guide you on why you need property insurance to protect your interests and ensure your dreams don't turn into a nightmare.
Here's the good news - property insurance in Spain tends to be much cheaper than in other countries including the UK. This gives you the opportunity to compare a collection of quotes from potential providers. There are many providers situated throughout the Costa del Sol, and in Marbella as well. The next check mark on the list once you choose your provider is choosing the right policy. It is important to be certain that you understand what's covered, and of course, what restrictions are involved. The fact of the matter is there are many different policies, so now we must determine which one of those policies fits your needs.
What Coverage do you need for your holiday home in Spain?
Depending on the type of dwelling your Spanish holiday home is will depend on the types of insurance you should consider. For example, if you have a Spanish home on the campo or finca: or your Spanish home is part of a complex or apartment block will present different options.
Building insurance - This type of insurance generally covers the structure of you Spanish home including garages, gates, fences and walls. Some Spanish policies will exclude swimming pools, so make sure to check because you want your swimming pool covered as well - replacing cracks or the pump can be very costly. This type of insurance should cover you against the costs of repairs, rebuilding, debris removal or professional help after such events like a fire, major storm, earthquake, burst pipes and floods. Make sure your building insurance also covers permanent fixtures in the building, like fitted kitchens and bathrooms.
Community Living - Urbanisations or Complex - If you own a holiday home in a complex or urbanisation, your fees may include community building insurance - but you must make sure. Not only that; buy you must make sure you are covered for the little things as well. Generally in a community building insurance coverage will be limited to communal areas like walkways, windows or pipes. This likely won't cover your fixtures or fittings, which at the end of the day will be very costly for you.
One of the biggest mistakes you can make is "assuming"; don't assume everything is covered because you pay fees. Remember that anything is possible including rare scenarios like accidental flooding. Imagine for one moment that your neighbour accidently left the tap running, and no one was around to notice that both apartments flooded causing extreme damage. You're thinking you can simply put in a claim with the community building insurance, only to find out that you weren't actually covered for fixtures or fittings inside your apartment. Avoid these types of scenarios by researching and never assuming.
Contents insurance - This type of insurance is highly recommended because it covers everything you would take with you if you moved home. Contents insurance will typically include general content like furniture, and electrical equipment; in the event of a fire, flood or even theft contents insurance can come in really handy.
One very important thing to remember is that Spanish property insurance policies do not usually cover personal valuables. This is because most holiday properties are left unoccupied for long periods of time. If you do take valuables to your holiday home, make sure to insure them under an "all-risks" section in the main household policy. If your Spanish home is used for holiday letting, then choose a policy that covers damage done to your contents from vacationers. So, if the holiday renters damages furniture or even the TV, you are covered.
Choosing a Policy that Includes Public Liability
If you are planning to let your holiday home including public liability insurance is really important. Liability insurance covers you for legal costs or expenses following an unfortunate death or injury to third parties in and around your property. If you let out within a complex, the community buildings policies is very limited when it comes to public liability insurance. The amounts paid out will vary, but most are much lower than expected - leaving you very vulnerable when an injury claim far surpasses the coverage.
It is even advisable that you opt for liability insurance even if you have no intentions of renting out. Remember, even when it comes to close friends or distance relatives, you can never be too careful about who you might lend your holiday home to. If you have a swimming pool make sure to include this in your liability insurance, this protects you in the event of an accident.
Finally, and if applicable, don't forget to include employers liability insurance in your policy. If you plan on hiring a Gardner, caretaker, cleaner or any type of domestic help, it can protect you against legal action.
Arranging for Holiday Home Insurance in SpainOne of the most popular questions asked regarding insurance is how to go about getting it and setting it up. There are a few ways you can do this:
- The bank - You can arrange for a policy through a Spanish bank. All Spanish banks offer several types of insurance. It is one of the cheapest ways to attain the insurance you need, but you won't be assigned a personal agent like in most other cases. Also, you must pay special attention to the small print.
- Insurance broker who speaks your language in Spain - Brokers are plentiful here, and many speak several different languages. Ask friends who live here already or who once were in the same situation as you. It's sad to say but sometimes you may discover the friendly service disappears once you pay for your policy. You don't want to deal with this in the event you have to make a claim.
- Get Insurance at home - there are several insurance companies that deal with overseas property, it's just a matter of finding the right one. Expect the premiums to be a lot higher, but at least you can rest easy because all documentation is in your language to start with.
Finally, and in conclusion - one big tip refers to the language barrier you might face in Spain. If you speak absolutely no Spanish, you might want to hire a translator or seek out a professional realtor or even solicitor. You simply cannot take the chance or be too trusting when it comes to your financial future.
Avoid the mistakes, take precautions, get the right insurance coverage, and enjoy your time in the sun!