Note
What home insurance covers in Spain
Quick answer
A policy lists a sum for the building, a sum for the contents, liability cover and exclusions. If the sum insured is lower than the real value, the insurer may pay in proportion. If it is far higher, you can ask for a reduction. Read exclusions and conditions first.
Applies toOwners who want to read a policy schedule with confidence before buying or renewing.
On this page: 8 sections
§ 1The schedule
Every policy has a schedule that names the insured property, the policyholder, the period, the sums insured and the premium, and general conditions that set the rest. Read the schedule first, because it shows what you have bought. The general conditions explain the exclusions. This page belongs to the chapter on home insurance explained, and it explains the structure only, with no company named and no premium quoted.
§ 2Building and contents
The building cover protects the structure and what is fixed to it. The contents cover protects movable property. A policy may also cover liability for damage you cause to others, legal defence, and assistance such as an emergency plumber. For a holiday home, ask whether the contents cover applies when you are away and what the limits are for jewellery, cash and electronics.
§ 3The sum insured
For the building, the right figure is the cost of rebuilding, not the market price. The law applies the proportional rule when the sum insured is lower than the value of the interest at the time of the loss: the insurer then pays only the same proportion of the damage, unless the parties agreed otherwise. If the sum is notably higher than the value, either party can ask for a reduction of the sum and the premium. Ask the insurer how it arrived at the figure, and review it each year.
§ 4Exclusions and conditions
Exclusions are events the policy does not pay for. Conditions are things you must do. Both are in the small print. Common examples are conditions on locks and alarms, on vacancy, and on maintenance. If you breach a condition, the insurer may refuse or reduce the claim, so keep a record that you complied. More on cover for non-residents explains the conditions that matter for homes owned from abroad.
§ 5Excess and limits
The excess is the part of each claim you pay. Limits cap what the insurer pays for a category or an item. A low premium often goes with a high excess and low limits, so compare policies on the same terms.
§ 6Extraordinary events
Events such as exceptional floods are in Spain normally covered through a separate national mechanism that is tied to the policy. We found only the title of the official resolution on this and did not read its text. Ask your insurer in writing what happens after a flood or an earthquake.
§ 7The community policy
In a block, the common parts are normally insured by the community. Ask for the policy and compare it with yours so that there is no gap or double cover. Making a claim explained explains what to do after a loss.
§ 8Renewal
At each renewal, check the sums, the use declared and the exclusions. Tell the insurer about works or a change of use, which the law treats as a change in the risk.
FAQRelated questions
What is the difference between building and contents?
The building is the structure, fixtures and fittings, and the contents are movable things such as furniture and appliances. Each has its own sum and its own limits, and a claim is paid from the right one.
What is the proportional rule?
When the amount you insured is smaller than what the property was really worth at the time of loss, the insurer settles only a matching fraction of the damage, unless the contract states otherwise. Under-insuring therefore backfires.
Does the policy cover floods and storms?
It depends on the wording and on the extraordinary-risk cover. We did not read the consortium rules or any policy, so ask which events are covered, by whom, and with what excess.
Sources
- Boletín Oficial del Estado: Ley 50/1980 de Contrato de Seguro (consolidated text updated 3 October 2026) (official source, opens in a new window), Arts. 10, 11, 12, 16, 18, 19, 20, 25, 26, 30 and 31 readLast checked 18 October 2026
- Boletín Oficial del Estado: Resolución de 27 de noviembre de 2006 on surcharges and cover clause for extraordinary risks (BOE-A-2006-21357) (official source, opens in a new window), Title only; text not readLast checked 18 October 2026
Legal note. How the process works in general. It is not legal advice, and it never replaces an independent Spanish lawyer acting for you.