The Spanish property insurance policies can be just what you need and are advisable under certain circumstances, but be aware that they are often different to the home insurance policies you will have been used to “back home”. Spanish home insurance policies will often be written in Spanish, and even if they provide you with an English version as some do, if you read the small print you will find that in the event of dispute “the Spanish policy wording will prevail”. So if they made a mistake in their translation, or have missed something off, it’s your problem not theirs !

They will also often have a very low liability cover (compared to the cover you would expect and get from a UK provider), which can be as low as about EUR 100K - 200K. This is important for everyone, but even more so for anyone who is planning to rent out their property,  even just to let friends use it without charge, as if they have an accident, they can now sue you for damages in the UK, and 200K Euros will not go far under such circumstances.

Also check on things like “all risks” to see if some of your contents will be covered whilst away from the property (jewellery for example) and also the excess on the policy (the amount you have to pay before the insurance company pay anything). Be aware that with excesses there will often be more than one, so although you may see in the highlights of the policy a “policy excess” stated, there may well be a higher excess that applies to things like subsidence. Also, subsidence cover is sometimes not included at all.

Also for holiday homes etc, check to see if the policy requires you to have the property inspected regularly whilst it is unoccupied  for more than a certain period of time or take specific precautions such as turning off the water etc. There are lots of hurdles, so do try to speak to an expert.

Using a Broker who has access to a number of different policies, including UK policis written in English will present you with a good opportunity to get the right cover at the right price, and one who focuses on the Spanish market, and ideally for expats will be the best bet. ** EDITED ** Commercial post

Make sure the Broker you choose however is properly authorised to operate in Spain, either by the DGS (Spanish regulator), or their “home state regulator”. For UK companies operating in Spain this is the Financial Services Authority (FSA). There are a number of companies in Spain who are operating outside of the law in this regard, and as of July 2007 the sale of all general insurance in Spain is a regulated activity and can only be offered by companies who are regulated.

This is very good news for the consumer, especially those who are English speaking and as such do not fully understand many insurance policies they are advised to buy. It is however very bad news for any person or company promoting insurance if they are not fully authorised and regulated, as they will now be breaking the law.

** EDITED ** Commercial post

Hope this is useful.

In answer to your question about insuring your new car in Spain when you have it, the answer is yes, and you have a number of options. I assume you are buying a Spanish registered car, as some people decide to bring their British registered car to Spain. I will do my very best not to sound like an advert here (I am the MD of a UK Insurance Brokerage with Branches in Spain), but there are Brokers you can talk to who can provide you with suitable comprehensive insurance for your car, to cover you and your family. My advice is to get a policy that is written in English so you FULLY understand your cover. An independent Broker is best as they can give you access to more than just one policy, so find the best one for your needs, and the best price of course.  Alternately you can call local insurance companies but the language barrier can be a challenge and if the policy wording is in Spanish there is room for misunderstandings as I am sure you can appreciate.  However this is an option available to you. If you do use a Broker, I suggest you try and find one that speaks English and perhaps that is focussed on expats, as this will help you a great deal. Insuring your car is simple and straight forward, so nothing to worry about here.

Some things to consider when insuring a car in Spain:-

·         Are you covered whilst driving the car outside Spain (if you drive to Portugal or the UK for instance) and for what period this covers (perhaps 90 days in any one year, or a limited period outside Spain but no actual limit on the total time spent outside Spain for example)

·         What you will get paid if you have a total loss (their policy on valuing the car)

·         If the policy includes breakdown cover

·         Is the breakdown cover just applicable to Spain or also throughout Europe

·          A hire car option may also be worth considering but note this may well be an “option” rather than “standard” so do check this with them. It is advisable as if your car is off the road you have access to a hire car paid for by the insurance company

·         Is the hire car option only available in the event of  an accident, or also for “mechanical breakdown”

·         Are there any restrictions on driving and what are they, such as an “open policy” so anyone can drive, and is there an age limit on this, so for example “any driver over the age of 30” or just for the insured named on the policy

I hope this helps

Regards

Alaric Errington