We have been living on an urbanisation of 36 houses near Valencia for nearly 3 years- others have been here as long as 5 years - and we are still without a cédula. We completed at the Notary having been assured that as their were only two more houses to be completed, the builder had submitted the 'Fin de Obras' to set in motion the issue of the cédulas. We took up occupation and duly arranged buildings and contents insurance through a reputable Spanish insurance company, Santa Lucia, and we have been paying premiums ever since. Yesterday we got a real shock when a friend who is purchasing a new build further down the coast rang to say that they had been told that although most insurance companies will happily take on your insurance requirements, in the event of a claim, they will refuse to pay because the house in their opinion is not legal, i.e. having no cédula. Apparently there is no obligation on the part of the insurance company to enquire as to the legality of the house, the obligation to disclose the true position is that of the proposed insured. We were advised to check with our insurance company.
Even though we don't have a cédula, we have all the services in our own names and we are paying IBI to the local Town Hall. When we enquired as to why we were paying IBI when the house had not yet been declared legal, we were told that so far as the Town Hall are concerned, the house is completely legal having been built in accordance with the building licence. We, however, cannot legally live in the house if we don't have a cédula.
Can anyone tell me whether the information we have been given is a fact with regard to all Spanish Insurance Companies or is the matter subject to the individual discretion of the insurance company concerned. If my house has been declared in existence by the Town Hall, surely I should be able to protect my property even though I may not legally be entitled to live in the property. I would welcome any comments. I don't want to go barging into my insurers and perhaps stir up a hornets nest if I have been given incorrect info.