Home insurance in Spain works differently from the UK, Ireland, or the US. Many expats buy a policy and assume they are covered — only to discover gaps when they need to claim. Here are the five most common mistakes we see, and how to avoid them.
If you live in an apartment or a property within a community of owners (comunidad de propietarios), the community will have a communal buildings insurance policy. Many expats assume this covers their flat — it does not.
The communal policy covers shared structural elements only: the roof, external walls, stairways, lifts, communal areas, and shared plumbing up to the point it enters your property. Everything from the walls inward — your interior walls, flooring, bathroom fittings, kitchen, plumbing within your unit, and all your contents — is YOUR responsibility to insure.
What to do: Get your own home insurance policy covering the interior of your property (known as continente privativo) plus your contents. Ask your community administrator for a copy of the communal policy so your broker can identify any gaps.
Most people significantly underestimate the replacement value of their belongings. You need to calculate what it would cost to replace everything — not what you paid, but today's replacement cost.
A typical two-bedroom apartment might contain €15,000–€25,000 worth of contents. A furnished villa can easily reach €40,000–€60,000. If you underinsure and make a claim, Spanish insurers apply the proportional rule (regla proporcional) — they reduce your payout in proportion to the underinsurance. Insure for €15,000 when your contents are worth €30,000, and you may only receive 50% of any claim.
What to do: Walk through every room and estimate replacement costs. Do not forget clothing, kitchenware, electronics, and garden furniture. We provide a contents checklist to help.
If your Spanish property is a holiday home that sits empty for months, your standard policy may have a vacancy clause — typically stating the property must not be unoccupied for more than 30–60 consecutive days. If a burst pipe floods your property during a 3-month absence and your policy has a 30-day vacancy limit, the claim may be refused.
What to do: Tell your broker the property is a holiday home. We source policies specifically designed for extended vacancy — they cost slightly more but actually pay out when you need them.
In Spain, if your property causes damage to a neighbour — the most common scenario being a water leak from your flat damaging the property below — you are personally liable. Water damage claims between neighbours (siniestros de agua entre vecinos) are the single most frequent home insurance claim in Spain.
Many basic policies include only €150,000 of civil liability. A serious water leak that damages multiple flats below (in a multi-storey building) can exceed this. Claims of €50,000–€100,000+ for water damage to a neighbour's property, furniture, and decoration are not uncommon.
What to do: Ensure your civil liability cover is at least €300,000. If you live in a multi-storey apartment block, consider €600,000. The premium difference is minimal — often just €20–€40/year more.
Actually, this is a mistake people think they need to worry about but don't. In Spain, extraordinary natural events (floods, earthquakes, DANA storms) are automatically covered by the Consorcio de Compensación de Seguros — a state-backed insurer. A small surcharge on every home insurance policy funds this cover. You do NOT need to buy separate flood or storm insurance.
However, you DO need to have a valid home insurance policy in force — the Consorcio only pays claims through your existing insurer. No policy = no Consorcio cover.
What to do: Simply ensure you have a current home insurance policy. The Consorcio cover is automatic.
The common thread in all these mistakes is the same: policies bought without expert advice, often through a Spanish comparison site where the fine print is in Spanish and the nuances are lost. Working with an English-speaking broker who understands both the Spanish insurance market and the specific needs of expats eliminates these risks.
Want us to review your current policy? Send us your details — we will check for gaps and let you know if you are properly covered. No charge, no obligation.
See also: Home Insurance Spain | Contents Insurance Spain
Quick answers on insurance in spain
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