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Insuring your home
As in any country, it is sound practice to carry homeowner’s insurance protecting you against damage to the building itself, damage or theft of its contents, and against claims from others who may sufFer injury or damage resulting from your ownership.
This is especially important when you are absent from your Spanish property for long periods, but be alert to clauses in your contract that render your insurance invalid if you are away from the property for more than a stated period of time. Often, by paying an extra premium, you can be covered even though you are absent much of the time.
Both Spanish and international insurers offer various policies at various prices. Make enquiries among older residents to find a company that has given good service.
As in most countries, you fill out a form in which you put a value you wish to insure on your house and its contents. Remember that, should you choose to insure your property for only half its real value, the insurance company, which makes its own evaluation, will pay you only half the value of any individual items that are stolen or damaged. People sometimes think they can insure half and then get full value when only two or three items are stolen or damaged, but this is not so.
The company will also ask you to report on whether your property will be unoccupied for lengthy periods, how old the building is, how many doors and windows there are, whether they are guarded by iron-barred rejas, if there is a burglar alarm system, and so on. If you do not respond truthfully to these questions, there can be grounds for a later denial of any claim you make. Your premiums will vary according to your situation.
Be sure to read the fine print in your policy. Often, insurance against theft of the contents of your property will not pay unless entrance has been forced and there is evidence for this. If a “guest” at one of your parties makes off with your wife’s jewels, you will not be paid. If there is no copy of the contract available in your language, have someone translate for you.
What will insurance cost you? Policies and conditions vary, but you can estimate that about one euro per year per thousand euros of value will cover the building itself against damage by natural causes or fire or explosions, if the building is located in a town. An older house in the country, far from fire-fighting services, would cost more to insure.
Insurance of your furniture and household effects will be somewhere around €2.50 per thousand euros of value if you live in an apartment; up to €3.50 per thousand if you live in a detached villa. This covers fire and theft.
If one of your steps collapses and the postman breaks his leg, or you leave the bathtub water running until your downstairs neighbour’s apartment is flooded, they can claim compensation from you as the owner. You can cover yourself for claims up to €50,000 for less than €20 a year
Most Spanish companies offer a comprehensive policy covering the building, the contents and third party claims. One company quoted a figure of€1,200 per year for comprehensive coverage of a villa and contents valued at €240,000. An apartment or townhouse would be less costly.
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