Re: Re: Home insurance in Spain


The basic principle of home insurance is that insurer undertakes to restore home to state in which it presented before event giving rise to claim took place( eg fire) Accordingly the insured value should be the re-instatement cost of home,which comprises rebuilding cost,architects and other fees,cost of removing rubble from site etc. Any mortgage on property is entirely irrelevant and market value should not be the basis because market value comprises both site value and building value(the decline in Spanish property values may have the effect of bringing market value below rebuilding cost,but this should not confuse issue-your challenge is to arrive at a reasonable testimate of what it would cost insurance company to re-instate home if it burned down(for example)
I have seen estimates of building costs varying from €300 to €700 per sq metre for rural Spain-your friend might not be too far out in quoting €700.You might have a local contact in your location who could give you an estimate of rebuilding cost,which would of course vary from region to region and standard of construction and finish of houses would also vary
I am insured with Intasure a company which insures all buildings under cover for up to €1 million automatically and therefore does not require a declaration of insured value for buildings-a declaration of value for contents is of course required.This company specialises in holiday homes and policies are in English and set out clearly what is and is not covered.The company has received mixed reviews on internet sites,some moderately unfavourable,most favourable-if you decide to consider using this company,you can arrive at a selection of reviews by simply Googling “Intasure”.The big plus with this company as I see it is that they understand clearly how holiday/expat homes are used and provide cover correspondingly.My dealings with the company have been satisfactory but I have never made a claim and I think an insurance company is really only tested when you make a claim.I am at present paying an annual premium of €165,with buildings cover up to €1 million and contents just under €6,000,with a general excess of €250,When taking out any insurance policy of course one should check carefully what is and is not covered
You have headed the thread”Home Insurance in Spain” and I have here addressed the question of home insurance.There are of course a variety of mortgage insurance policies,which give protection in the event of death,loss of job etc-a different range of policies
Best of luck in resolving your issue