As a general rule of thumb, the buildings sum insured should reflect the total cost of reconstructing the property (excluding land purchase). The contents should reflect the replacement as new of the contents - our contents calculator should assist you in establishing the correct figure.
Frequently Asked Questions | Household Insurance
Household Insurance
How do I establish my sums insured?
I have a mortgage on my property and my bank insists on me buying their own buildings insurance cover, what should I do?
The bank can insist on you having buildings insurance, and that they are named as beneficiary on the Policy - we can arrange this, and note their interest in the Policy. However, they cannot and should not "force" you to buy the insurance with them, and we would strongly recommend that you do NOT purchase the cover via the bank as they do not offer any advice to clients on how best to arrange the policy, and will normally leave you to your own devices once the Policy has been sold, leaving you to deal with the dreaded call centres in the event of a claim. In addition to this is the fact that generally you will be able to get a much more competitive deal with an Insurance Broker.
I have an apartment and the Community arranges the buildings Policy. Do I still need buildings cover?
There is no clear cut answer to this as each case is potentially different. However, in our experience community insurance policies often do not cover private water pipes, and will often have low sums insured leading to problems in the event of a claim. In addition, the community policy will only cover the "original" buildings as handed over by the developer - therefore any improvements to buildings such as installation of a safe, security grilles, sun blinds etc. will NOT be covered by the community policy. Our advice therefore, is always for the client to "top-up" by buying a 1st loss buildings limit of at least € 20.000, although, we would also recommend that they consider insuring for the full reconstruction cost and accept that there is some duplication of cover.
What cover is available for my objects of value?
This depends on the type of policy which you have. Many of our policies provide upto 25% of the contents sum insured to cover objects of value (art, antiques, rugs, collections etc), with a single item limit of € 6.000. However, to be on the safe side, we would always strongly recommend that you check with us, and that you submit to us an inventory of any objects of value which you may have.
What does the third party liability cover me for?
This part of the policy is designed to cover you for claims made against you by third parties for physical or material damage which they have suffered as a result of an act or omission carried out by you or your property.
If I have a claim, how will this be handled, and how long will it take?
You simply contact us with details of the claim, and we shall handle it from their. Depending on the nature of the claim, we normally aim to get either a loss adjuster or a tradesman along to visit you within 24 hours of advising the claim. We aim to get the claim finalised within 30 days of being advised of the claim, subject of course to having been presented with all necessary supporting documentation etc.
What is meant by New for Old cover?
This means that provided your sums insured are correct, you will be reimbursed for any loss on a replacement value at to-day's cost. You should always check the policy itself for any exceptions.
What is Accidental Damage Cover?
Examples of accidental damage losses are cigarette burns in carpets, dropped fragile items, collapsing shelf which damages items etc.
What cover is available for my jewellery?
This depends on the type of policy which you have. Many of our policies provide upto 15% of the contents sum insured to cover jewellery, with a single item limit of € 3.000. However, to be on the safe side, we would always strongly recommend that you check with us, and that you submit to us an inventory of any jewellery which you may have. Most policies in Spain will provide defined risks cover for jewellery, meaning that it is covered for named perils inside of your home, and has very restricted cover outside of your home. Whilst it is not usual to find anglo-saxon style “all risks” cover for jewellery, we can arrange this for you.