A question that many of our clients frequently ask us is whether or not it is compulsory to take out home insurance for their home.
As you know, the purchase of a home in Spain is a process that, without professional help, can be complex, involving not only the buyer and seller, but also the legal and administrative figures involved in the whole process and, of course, the banks that grant the mortgages.
And it is here where many times the doubt arises about the obligatory nature of this home insurance and that many times it comes together with our mortgage.
If this is your case, read on and we will give you the answer below.
Is it mandatory to take out home insurance in Spain?
To make it clear from the outset, it is NOT compulsory to take out home insurance in Spain.
However, if the question is whether it is a recommendable option, we can tell you that, especially for those who do not live in Spain, it is a very beneficial option to help maintain the home when we spend time away from home.
Why do banks require me to take out a home insurance policy in order to grant me a mortgage?
As we were saying, in Spain there is no obligation, let’s say by law, that obliges us to take out home insurance for our home.
It is true, on the other hand, that when we go to a bank to negotiate and be granted a mortgage to buy a home, things tend to change.
In this sense, most banks in Spain require borrowers to take out a home insurance policy that covers at least the value of the mortgaged property against damages, such as fire or natural disasters.
This is a condition for the approval of the mortgage loan, as the bank wants to make sure that its investment is protected.
What are the main benefits of taking out home insurance in Spain?
If we talk about the benefits of taking out home insurance in Spain, the first thing we should say is that it is a help to our peace of mind or our peace of mind in case something happens to our home.
Imagine living in another country and your home in Spain suffers serious damage, be it from a storm, a fire or any other incident. In this way we could say that we are covered.
Apart from this, which is the most general thing, we can mention other benefits such as:
- Protection against damage and theft:
Apart from possible damages, the majority of home insurance policies cover our home against possible thefts that may take place in it. The same applies if vandalism occurs in our absence as well as the aforementioned damage or damage that may occur in the home.
Home insurance can protect your home against a wide range of risks, such as fire, flood, earthquake, theft and vandalism. This can save you thousands of euros in repairs and replacements.
- Liability cover:
Home insurance can also include liability cover, which protects against third-party claims for damage or injury to your property. For example, if someone is injured in your home, the insurance will cover medical costs and any potential lawsuits.
MAM Solicitors, we help you with all the formalities involved in the purchase of your new home.
At MAM Solicitors we have over 30 years of experience helping our clients so that all they have to worry about is enjoying their stay in Spain.
Our team of specialist lawyers are ready to help you through all the steps and stages of the buying process, from checking that the property you wish to purchase is in order and complies with all the legal documentation required, to the drafting and signing of contracts and the subsequent administrative procedures and payment of taxes.
We invite you to contact us and let us help you with everything you need.
