Which insurances are actually compulsory in Spain?

Few insurances in Spain are genuinely compulsory. Most requirements come from your bank or from specific regulation rather than from the law itself. Knowing the difference saves you buying cover you do not need and skipping cover you do.

Legally compulsory #

There is no general obligation to insure a property in Spain. There are situations where insurance becomes a requirement.

Buildings insurance with a mortgage. Take a Spanish mortgage and the bank will almost always require buildings insurance (seguro de hogar), covering fire, storm and water damage.

The obligation comes from the bank, not the law, and you can usually choose your own insurer. Some banks attach conditions or offer a rate discount for taking their policy, which is worth pricing against an independent quote. The discount frequently costs more than it saves.

Motor insurance. Genuinely compulsory by law for anyone owning or importing a car in Spain: third party liability cover (seguro de responsabilidad civil). Nothing to do with the property, but relevant as soon as you have a car there.

Not compulsory, but standard #

Alongside the compulsory items sit the policies most owners take anyway.

Contents insurance for damage to or theft of personal possessions. Liability insurance for damage to third parties, which in an apartment block is the one that earns its keep. Letting cover for damage caused by guests and the risks that come with letting. And legal expenses cover for disputes over ownership, letting or contracts.

Cover and conditions vary considerably between insurers, more so than in the UK market.

Insurance and letting #

Letting can bring additional requirements. Some municipalities require liability cover for tourist letting, and the regional rules differ.

Separately from any legal requirement, letting without cover that permits it is a bad idea. A standard policy generally excludes letting, and a claim on an excluded activity gets declined.

Practical points #

Establish what your bank actually requires rather than what it offers. Price the bank’s policy against independent quotes. Check whether your region requires liability cover for letting. And make sure any policy explicitly permits letting if you intend to let.

In short #

Almost nothing is compulsory. The mortgage requirement and motor insurance are the two real ones. Everything else is a judgement about risk, and the liability and letting cover are the two most worth having.