A Spanish property needs the right insurance. The cover and the conditions differ from what you are used to at home, in ways that catch people out at exactly the wrong moment.
What cover is relevant #
Buildings insurance (seguro de hogar) covers damage to the property itself: fire, storm, water damage.
Contents insurance covers your furniture and personal possessions.
Liability insurance covers damage to third parties, for example a leak that damages the apartment below. In a Spanish apartment block this is more relevant than it sounds, because water damage between flats is the most common claim there is.
Letting cover is additional protection when you let: damage caused by guests, loss of rental income.
That last one deserves emphasis. A standard policy usually does not cover letting. It has to be explicitly stated in the policy, and a claim on a property being let under a policy that does not permit it will be declined.
Is insurance compulsory? #
Generally not by law. There are exceptions.
With a mortgage, the bank almost always requires buildings insurance. And for tourist letting, liability cover can be required depending on the region.
What to watch when arranging it #
Check that letting is covered if you intend to let. Compare cover and conditions between insurers rather than on price alone. Look carefully at the excess and the maximum payout.
Choose a policy with terms you can actually read, in English if that is what you need. A policy you do not understand is a policy you will misuse.
And document your valuable possessions properly, with photographs and receipts, because Spanish insurers can ask for extensive evidence at claim time.
A few things that differ from the UK #
Spanish policies frequently exclude damage from lack of maintenance more aggressively than UK ones, which matters on a property standing empty for months.
Many policies require the property to be occupied or checked at intervals. Read that clause, because an unoccupied property for the whole winter can fall outside cover.
Community insurance covers the building’s communal elements but not your interior. Owners regularly assume the community policy covers more than it does.
CostaConnectUK tips #
Compare Spanish insurers with international ones, because the international providers often deal better with English-language claims. Ask what the claims process actually involves before you need it. And review the sum insured periodically, because rebuild costs move.
In short #
Insurance in Spain is not complicated, but the exclusions do more work than in a UK policy. Read the letting clause and the occupancy clause specifically.
Last reviewed 2026-08-24
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