It is possible that your holiday home in southern Costa Blanca could be subject to risks in your absence, including theft, vandalism, squatters or ‘okupas’, fire, water leaks, weather and storm damage.
Insuring your holiday home protects your property against accidental, deliberate, or unknown risks.
A holiday home insurance is split into two elements, buildings and contents cover.
Building Insurance – A compulsory policy if you have a mortgage or loan with a Spanish bank, it covers your property’s structure, building, and outbuildings against things such as burst pipes, subsidence, storm damage, fire, flood, and earthquake. It also takes care of the rebuilding or repair work bills.
Contents Insurance – It insures the contents inside and outside your property that are not nailed down, such as carpets, curtains, electrical equipment, electronics, furniture etc. The kitchen is also a part of a property’s contents because it has replaceable and removable items. Swimming pools, golfing equipment and carts, as well as pushbikes are included in contents insurance.
This combines building and contents policy and is a smart way to keep the insurance premium down.
If you are rent your holiday home it’s best to consider some extra cover policies for your property.
Public liability insurance or third-party insurance provides the homeowner with a variety of protections if a guest or a tenant suffers a personal injury or accident whilst renting or as a guest in your property in Spain. It will help you pay the associated legal costs and expenses. Liability insurance is tailored to your requirements and covers the property in anticipation of any potential incidents that could take place during the tenants’ stay.
Employers’ Liability Insurance – It covers the staff including cleaners and gardeners.
There are periods of non-occupancy in a holiday home, which implies a higher risk from vandalism, theft, burglaries, squatters, burst water pipes and other perils. It is crucial to have suitable insurance protection to deal with phases of non-occupancy.
It will help cover loss of rental income if your property is damaged and becomes uninhabitable. You can claim back the rental income loss for the period it takes for repairing the house.
This policy will cover you if you or your guests and tenants accidentally ruin an item of value, work of art, an expensive carpet, or an item of sentimental value in your property.
The premium for this policy will be calculated according to the location of your property and the risks associated with the area, and the items that you want to cover.
This will help pay any legal fees if you have a dispute with tenants.
At Karsan we can help with the Spanish rules and regulations that deal with insurance and claims. Please note that rental insurance, letting insurance, and landlord insurance in Spain are very similar holiday home insurance policies that we can provide.