Insurance questions when you're purchasing a Spanish property.
Insurance questions when you're purchasing a Spanish property.
Timing matters when you're buying. Your home insurance should be in force from completion day — when you sign the escritura at the notary and take ownership — and if you're using a Spanish mortgage, the lender will require buildings cover in place first. The bank will usually push its own bundled policy, but you can almost always insure independently for the same or better cover, often more cheaply.
The answers below cover when to arrange cover, the notary, what banks require, whether you must take the bank's policy, and off-plan and new-build timing.
Buyers really only need to remember two things. First, cover starts at completion — the moment you sign the escritura and the property's risks become yours; set the policy up a few days ahead with a start date matching completion so there's no gap. Second, with a mortgage, the lender needs buildings cover documented before it releases funds — but only buildings cover, and it doesn't have to be the bank's own policy. Independent cover that meets the requirement is usually cheaper and you can even switch to it later. For off-plan and new builds, the start date is handover, not the reservation.
If you're financing the purchase, the lender will require buildings (continente) cover for at least the value of the structure, for the life of the loan, and will want it documented before releasing funds. That requirement is standard — but the cover doesn't have to come from the bank. Banks routinely bundle their own home (and sometimes life) policy with the mortgage, occasionally with a small interest-rate discount attached. You're generally free to use an independent insurer that meets the requirement, which is often cheaper and better; weigh any rate discount against the higher premium when you compare. See mortgage home insurance and bank vs broker.
For a resale, cover simply starts at completion. For an off-plan or new build, the developer carries the construction risk and your cover begins when the property is handed over and registered in your name — so align the policy start with handover, not the reservation or the original contract. If completion slips, as Spanish purchases sometimes do, we adjust the start date.
To set cover up smoothly we'll need the property details (type, size, location), a sensible rebuild and contents valuation, the planned completion date, and the lender's requirement if there's a mortgage. Get those to us a little ahead of completion and the policy is live exactly when you need it — all in English. Many buyers are non-resident at purchase; see non-resident home insurance.
Plenty of buyers accept the bank's bundled policy at completion just to get the purchase over the line — and that's fine, because you're not stuck with it. You can usually switch to an independent buildings policy afterwards, as long as the replacement keeps meeting the lender's requirement; you simply notify the bank of the new cover. Many owners do exactly this once the rush of buying is over and save year after year. If a rate discount (bonificación) was attached to taking the bank's products, check what dropping them does to your rate and weigh it against the saving — we'll help you work it through.
Without a mortgage there's no lender requirement, so home insurance isn't compulsory — but it's strongly advisable from completion day, because the property's risks become yours the moment you take ownership at the notary. A fire, leak or storm the night after completion is your problem, not the seller's, so you don't want a gap.
See our guides to insurance when buying, mortgage home insurance and bank vs broker. The answered questions below cover the rest.
So it's in force from completion day — when you sign the escritura at the notary and take ownership. Set the policy up a few days ahead with a start date matching completion, so there's no gap. See insurance when buying.
Cover should be ready to start at completion; with a mortgage the lender will want buildings cover in place and documented before releasing funds, so have it arranged in advance.
Yes — typically buildings (continente) cover for at least the structure's value, for the life of the loan, to protect the lender's security. That much is a standard, legitimate condition.
Usually not — you can generally use an independent insurer as long as the cover meets the lender's requirement, and it's often cheaper and better. See bank vs broker and mortgage home insurance.
Usually yes — you can replace it with an independent buildings policy that meets the lender's requirement and notify the bank. Many owners save by doing this once the purchase rush is over. Check the effect on any rate discount first.
When the completed property is handed over and registered in your name — the developer carries the construction risk until then. Align the policy start with handover, not the reservation. See new build and off-plan insurance.
The property details (type, size, location), a sensible rebuild and contents valuation, the completion date, and the lender's requirement if there's a mortgage. We'll have the policy live for completion day.
No — insure buildings at the rebuild cost, not the purchase price, because the land isn't at risk. On the coast the price usually exceeds the rebuild cost, so insuring at purchase price means over-paying.
It's not legally required without a mortgage, but strongly advisable from completion day, since the property's risks become yours the moment you take ownership.
Exactly as for residents — arranged from abroad in English, with documents by email, in force from completion. See non-resident home insurance.
Tell us about your property and we'll recommend the right cover — in plain English, with no pressure.
