Millions of Spanish houses insured but without having proper coverage

EDITORIAL STAFF CASA PROPIA, AUGUSTUS 2019

Concrete figures do not exist but estimates suggest that not tens of thousands or hundreds of thousands but possibly millions of homeowners in Spain are uninsured without even being aware of this fact. After reading the first page of the insurance policy most people think they are done with reading. One trusts that the insurance broker already explained everything correctly and one knows what, how and when is covered by the insurance. This behavior is far away from being smart at all!
Most of the insurance companies hold the policyholder responsible for obtaining and providing correct information about the current status of the property. If the owner does not follow this obligation there is a massive chance that the property in question is not insured/covered properly at all. It is no secret that in Spain a huge number of houses are not 100% legally built or legally remodeled, and/or extended. Sometimes the owner made changes without permission … often just minor additions. In general such facts are mistaken as “peanuts” and disposed with the words “that’s just how it works here in Spain”. Just a few home owners are aware that it should be inquired in written from the insurance company if this or that is insured. Let the insurance company confirm in writing that their policy is OK and the property in question is 100% covered by the insurance.
Some examples of circumstances which should always be examined very carefully and, where appropriate, reported to the insurance company:
  • An unregistered or even illegal construction
  • An incomplete case in the town hall/construction authority a so-called “expediente”
  • The absence of an official habitability certificate.
  • The existence of a habitability certificate but with an expired date. 
This certificate must be renewed every ten years normally.
  • The lack of necessary permits of already realized extensions or alterations to the property.
  • Installations of gas, water and/or electrical equipment carried out by an unauthorized installation company. For safety reasons have your installations inspected by a certified specialist company and get it certified in accordance with applicable regulations.

Avoid that you could not only lose the property itself, and if you have a mortgage on the property you may be left with the mortgage debt.

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