When it comes to real estate in Spain and insurance, the first thing that comes to mind is Seguro de hogar (real estate insurance) and Seguro de impago de alquiler (insurance against non-paying tenants). But few people remember that there is a third type of insurance ˗ Seguro de hogar para inquilinos (insurance for renters). This is a fairly new product on the insurance market, but its popularity and demand is growing every year. It is this special insurance that we will now talk about.
Renters Insurance in Spain: Basic Principles
Renters insurance in Spain includes a number of guarantees and covers that are also found in property insurance. However, there is an important nuance in this case: renters insurance is tailored to the needs of the renter and his family.
Let’s look at it with an example. The washing machine in the rental property breaks down. If the breakdown is not the tenant’s fault, and the machine was included in the inventory list attached to the contract, the responsibility for repair or replacement falls on the lessor. But if the machine breaks down due to the tenant’s fault, then he will bear the cost of repairs or replacement. This is where renters insurance in Spain can come to the rescue.
In addition, renters insurance may also include liability insurance, i.e. cover damage caused to third parties. Another coverage that can be critical in certain situations is the provision of substitute housing.
If, as a result of an accident (fire, flood, etc.), the rented housing becomes uninhabitable, the insurance company will not only provide other temporary housing as a replacement, but will also cover moving costs. In case of partial damage, compensation for individual expenses is possible (for example, for food or laundry services if the kitchen was damaged as a result of the accident).
Insurance coverage
Typically, renters insurance in Spain includes the following types of coverage:
- Theft, theft, theft. We are talking not only about objects, valuables and money located in housing. Theft on the street, assault and physical damage are also covered by insurance, both in relation to the tenant himself and his family members living with him.
- Fire and property damage due to fire.
- Replacing locks due to lost or stolen keys.
- Damage to wiring or electrical appliances.
- Burst water pipes, dampness and other water related damage.
- Broken windows, mirrors, glass ceramic hob, etc.
- Accidents involving art, jewelry, computers and other valuables.
- Urgent call of specialists to your home (locksmiths, electricians, plumbers, etc.).
At the request of the tenant, insurance for pets can be included in the insurance policy: both against theft or damage caused by them, and against damage caused by them to third parties (one of the cases of civil liability).
The insurance policy will also include legal protection, i.e. services of a lawyer if necessary.
Conditions for obtaining renters insurance in Spain
The most important condition is the existence of a lease agreement concluded in full compliance with current legislation. Renters insurance in Spain cannot be taken out if it is a partial rental (not the entire property is rented, but only a room or several rooms), tourist rentals or seasonal rentals.
And once again, we note that renters insurance in Spain also applies to family members living together in rented housing.
Renters insurance in Spain: companies and prices
Not all insurance companies offer renters insurance in Spain, so you may need to speak to several agents when choosing an insurance company. Among those offering this service in the Spanish insurance market are: Zurich, Mutua Madrileña, Caser, BBVA Allianz, Verti and Pelayo.
Prices for renters insurance in Spain depend on the coverage and insurance plan chosen. In general, we can say that the prices are comparable to the prices of real estate insurance. The cheapest option, which includes nothing more than civil liability, legal protection and the most basic covers (locks, glass, pipes and plumbing), costs around 40 euros per year.
The initiator of the conclusion of such insurance and the payer is the tenant himself. Renters insurance is not mandatory in Spain, but demand for this service has increased significantly in recent years. As a result, more and more insurance companies are starting to offer special insurance plans for renters.
