Insurance information for expats living in spain

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How to calculate home insurance in Spain

Our property is often the biggest investment we make in our lives and not only could we lose it, for example, in the event of a fire, but we could also lose everything in it, such as our memories, photos or important legal documents.

It is important to have insurance, depending on your needs and your personal situation it may vary in price. If you are wondering how home insurance is calculated, this post is for you.

If you are reading this then you probably already realize that it makes sense to organize home insurance in Spain.

While we cannot replace souvenirs or photos, we can help ensure that you are adequately protected so that your property is rebuilt and the costs of reproducing your important legal documents are covered.  For the calculation of costs, we will tell you how home insurance is calculated.

The main protections of home insurance in Spain are usually split into building insurance and content insurance, you can contract them independently but it is more usual and recommended to contract both in the same policy.

How is home insurance calculated? Buildings cover:

If you want to know how home insurance is calculated in this case, you should know that to calculate the coverage of your buildings you need to calculate the cost of construction and not the resale value.

The rebuild value may be less than the market value. This is because you do not need to buy the land again, if your property is destroyed you already own it. The market value of the property is affected by many factors that do not alter the rebuilding cost, for example, the area may be very desirable.

Perhaps you have good schools nearby, some wonderful views or good connections to other towns and cities, these variables do not change the costs of rebuilding but they do affect the market value and therefore the insurance, so it is important to realize all these factors to know how home insurance is calculated.

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The costs of the reconstruction should also ensure that the house insurance includes an amount for cleaning up the debris, planning permission, architect’s fees, surveyors and VAT (VAT plus other related costs).

Insurance companies will usually calculate the estimated cost per square meter based on the code. This should take into account the quality of the construction, if the materials used are of higher quality than normal, then this should be taken into account. It is important to take this into account when considering how home insurance is calculated.

Do not be tempted to undervalue your property when taking out the insurance. If, for example, the insurance company has suggested a figure for rebuilding, do not go below that indication. There are two reasons you should not do this:

  • If you under insure and you have to make a claim, then the amount of the payout will be insufficient to rebuild the house.
  • When you take out a policy, the insurer expects the premium paid to reflect the risk you are assuming. If the property is valued at 300,000, but you are paying a premium for a policy of 150,000, then you are under-insured.
  • In that case you will have paid the insurance company a lower premium than the actual risk is worth. This would allow the insurance company to reduce the payment they should give you, so not only would your payment not be enough to rebuild your property, it could be reduced even further because you have not paid the correct premium for the risk.

In the rare case that you feel that the insurance company’s construction value is too high, we do not recommend that you reduce it, but choose another company instead.

For this reason, it is important to know how the home insurance is calculated, to avoid unnecessary payments and expenses.

how is home insurance calculated in Spain? Content insurance

To calculate the amount of coverage of the contents policy you must go from room to room adding up the value of your belongings, this is how home insurance is calculated.

Go into a room and take a look at what’s there: curtains, curtain rods, closets, clothes, dressers, beds, mattresses, shelves, etc. Add up and write down the figure. Then go to the next room and do the same.

It is particularly important to remember that your kitchen is part of the contents of your property and not part of the building’s insurance.

When it comes to collectable items, antiques and jewellery it might be necessary to have the items valued, this will depend on the individual insurance company. An insurance company may want an individual list of all items of jewellery, watches or collectables with an individual value of more than 3,000 euros.

To know how the home insurance is calculated, the objects mentioned above must be detailed by the insurance company’s policy. You may also be asked to provide an estimated value in the case of jewellery, this means that it must be appraised by a reputable local jeweller.

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Again, do not under-insure as in the event of everything being destroyed then you will not receive sufficient to replace your losses.

How is home insurance calculated: In summary

Insurance is not an emotional purchase. When you take it out, it gives you peace of mind and makes you feel more secure. This feeling increases when you remove the right level of coverage and pay the corresponding premium.

Please think about the coverage you need to avoid disappointment at what is likely to be a complicated time.

Now that you know how home insurance is calculated you should know that in Spain there is a wide variety of insurance companies to suit your needs.

At BMI Spain we can help you find the most appropriate insurance company for you and your family.

Do not hesitate in contact with us if you have any doubts about healthcare in Spain for expats, our BMI Spain team will be pleasant to help you.

European-Health-Insurance-Card-in-Spain

European Health Insurance Card in Spain: COMPLETE GUIDE

One of the most important things to carry about visiting or moving for a short time to another country is to know what healthcare you are going to receive in case you need it.

If you are visiting Spain, you should know that its health system is classified as one of the best in the world and that through the European Health Insurance Card you too can have access to its services.

Continue reading this post for a complete guide of the European Health Insurance Card in Spain.

What is the European Health Insurance Card?

The European Health Insurance Card in Spain or in any one of the 28 European Union member states, plus Norway, Switzerland, Iceland and Liechtenstein, is a free card that allows you to access public health services during a temporary stay in any of the countries mentioned.

The services provided will be under the same conditions and at the same cost as for persons insured in that country.

The cards are issued by the social security offices in your country.

What should you consider about the European Health Insurance Card in Spain?

The European Health Insurance Card does not cover private assistance such as the cost of returning flights to your home country or the loss or theft of personal items, and it does not cover private care if you are travelling for the purposes of receiving medical care.

The European Health Insurance Card does not guarantee free services because the public health system in each country is different. Services that are free in one country may not be free in another country. In Spain, public health care is free.

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Who can benefit from the European Health Insurance Card in Spain?

If you are insured or covered by one of the public social security systems of some of the Member States of the European Union, Norway, Switzerland, Iceland and Liechtenstein, you may be entitled to this card.

Until when the European Health Insurance Card in Spain is valid?

European Health Insurance Card in Spain will be valid as long as you are not resident here or in the country where you are going to use it.

If you are on holidays, studying or working temporarily you will be able to use the European Health Insurance Card in Spain while you are not registered as a resident.

However, if you are registered as a resistant in Spain, the card will lose its value and will have to comply with the rules of the Spanish health system. On the other hand, you will have the same protection and conditions as other residents in Spain.

On the other hand, if you spend more than three months in one of the countries of the European Union, Norway, Switzerland, Iceland and Liechtenstein it will be considered that you have to be registered as a resident in that country and the card will lose its validity, even if it does not expire.

If you are going to be working or studying for more than three months in any other country, you will have to communicate this when you apply for the card.

How to apply for European Health Insurance Card in Spain?

In Spain, if you are applying for the European Health Insurance Card for the first time or are receiving any social security service, you will have to go in person to the Social Security Office. In this case you will be able to stop or export them.

If this is not your case, you can apply for the European Health Insurance Card in Spain online. Once you have applied for the card, you will receive it within a period of no later than ten days.

If you cannot wait more than ten days, you can request a Provisional Replacement Certificate, which is the same as the European Health Insurance Card and is valid for 30 days. You can apply for this certificate at the Social Security Office or on the internet, but you must justify the emergency.

What does the European Health Insurance Card cover in Spain?

In Spain, public health care is free, so when you go to certain hospitals you will be offered two types of care: public and private.

You should inform them about the type of assistance you would like to receive. If you want to receive private medical assistance, remember that the European Health Insurance Card in Spain will not cover these costs.

If it is necessary to go to the health centre or hospital, check if they belong to the public health system and accept the European Health Insurance Card. You can consult at the Ministry of Health website which health centres or hospitals accept the card.

Hospitals must show the European Health Insurance Card on admission so that they do not charge as if they were private care and, except in emergencies cases, you need a medical authorization to receive hospital treatment.

What about dentist primary assistance? In Spain, except for some cases, dental treatment is not normally covered by the public health system, only in cases of prevention and specific assistance for minors.

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What if I forget the European Health Insurance Card in Spain?

In Spain doctors cannot, as part of their professional ethics, deny health care to anyone who needs it immediately.

However, the medical centre or hospital may request you to pay the bill, complete or part of it, if you do not present the European Health Insurance Card, but you can later request a refund of the invoice, although there is no guarantee that you will be able to recover the full amount.

For an emergency, your local health authority could help you with a provisional Replacement Card Certificate by fax or email.

Spain has many Insurance companies that offer the best health insurance for you. Remember that in BMI Spain we can help you to find the appropriate Insurance company that will help you to cover all your needs.

Do not hesitate in contact with us if you have any doubts about healthcare in Spain, our BMI Spain team will be pleasant to help you.

Six reasons to take your insurance though an independent

What makes mediators so special?

A personalized service. As an independent broker we are not tied to any one particular insurance company. That enables us to find the most appropriate product for you.

  1. After sale care. We don´t just help you find the right policy, we are there with you throughout the life of the insurance contract.
  2. Claims support. We will help you represent your claim in front of the insurance companies.
  3. The human touch. In a word which with each passing day is becoming more automated you have the benefit of talking a real person.
  4. Fee free service. As an independent broker receives payment from the insurance company, where the policy is taken, there are no fees to pay us for finding you the product.
  5. Breadth of offers. Working with a wide range of insurance providers and having a large client base enables us to negotiate competitive premiums and special discounts, which you can benefit from.

 

In BMI we give our personal attention to those who are looking for expat  insurance in Spain. These are some of the insurance you will with us:

We offer service:

  • On-line.
  • Face to face.
  • Telephone.

Get Insurance In Your Language.

BMI INSURANCE BROKERS has two offices; our main office located in Fuengirola – Mijas and a sales office in Nueva Andalucía – Marbella. Both offices are attended by friendly and bilingual English / Spanish speaking personnel.

 

 

 

car insurance quote

CAR INSURANCE BROKER

10 REASONS TO CHOOSE AN INSURANCE BROKER IN CAR INSURANCE

Is it cheaper to choose an Insurance broker for your car Insurance? Yes because the broker can find the best offers with the best cover and give personalized attention, ensuring that the insured person pay for what they need for theses 10 reasons:

-We defend your interests.

-Personalised advice.

-We analyse the guarantees covered.

-We handle claims for a quick and successful resolution.

-Comprehensive service for new car insurance and renewals.

-Qualified staff.

-Close to you for your best accessibility.

-Same cost for better service.

-Customer service department to resolve queries or issues.

-Independent Insurance broker.

GET A QUOTE FOR YOUR CAR INSURANCE

electric skate insurance

Electric skate / bike included in your home insurance in Spain

Due to the increase of the use of electrical skates and bikes in all over our cities and due that there is no a clear regulation in Spain, at the moment, some Town Halls (Benidorm could be an example),   require to take out a Public Liability insurance.

To anticipate this situation, some Insurance Companies have included the option to add this guarantee under the home insurance policy for your property in Spain, for the policyholder and the family unit  living in the same address.   The cover includes the Public liability insurance and also the legal protection in order to provide the maximum protection to their clients.

It depends on the kind of vehicle and the amount insured (150.000€ /300.000E) the extra cost will be approximately 20€ per year.

However, it is also possible to get an independent policy, with higher covers. In the case of bicycles (electric or not) even is  possible insure them for thief outside home, road assistance, rescue, etc.

BMI insurane Brokers give personal attention answering your questions to find the best scooter insurance that fits your needs.

Leave us your details and our specialists will call you.

Ventajas de contratar un seguro

Three reasons to buy life insurance

A proven product that everyone should protect themselves with. Life insurance is a necessary purchase that has the benefit of giving you and your family peace of mind.

There are many different types of cover that can be tailored to suit your needs and lifestyle. Life insurance not only provides financial protection in the event of death but it is also a savings product that offers benefits that are becoming ever more extensive and customisable, so it is not surprising that, after car and home insurance, it is the third most contracted insurance cover in Spain. The average profile of a person who contracts life insurance is a married male aged between 35 and 44 years old, but it is never too late or early to take out a policy.

1. Arrange a mortgage to buy a house In Spain, six out of ten homes are bought with a mortgage.

In this case, it is advisable to take out life insurance because, in case of death or permanent disability of the person who contracted the mortgage, the insurer will take over the payments to the bank and remove your partner or relatives from the economic responsibility that could be difficult to continue with. In fact, with most banks it is a pre-requisite as a guarantee before signing the mortgage. Until recently, banking entities conditioned their mortgage lending with an “obligation” to contract some linked products, such as Life insurance. But since a few years ago, with the approval of the European Parliament of the Mortgage Credit Directive, banks are prohibited by law from linking a mortgage to the purchase of insurance. You only need that your insurance company includes a clause in your policy registering your lending bank as the mortgage beneficiary. In that way, you comply with the request of the bank but you also save money. You could even save a difference of 700 euros as the products offered by the bank can be up to 300% more expensive.

2. Start a family Life insurance can also be a guarantee for those who are thinking about starting a family.

It should be taken into account that raising a child in Spain can be expensive. It has been estimated that a baby can cost 14,266 euros during its first year of life and 14,056 euros during the next two. On average, a child can represent the disbursement of 1,183 euros per month during its first three years, which represents 80.78% of the average monthly net salary of a worker. It will depend on each person’s standard of living, but before the child turns 18 the parents could have spent between 115,000 and 350,000 euros. If at any time one of the parents dies, it will be difficult for the family to maintain the same rhythm of life. In those cases, although the personal loss will be irreplaceable, life insurance could guarantee the necessary capital to meet family expenses. With Liberty Seguros, even if the insured dies in an accident along with his/her spouse and they have children younger than 18, the beneficiaries will receive double the sum insured.

3. Protect your income level Last year there were 3,796 serious occupational accidents in Spain. Of these, 618 had fatal consequences.

The possibility of suffering an accident at work or outside that causes a permanent or temporary disability exists, so it is a wise choice to protect your income level. It will depend on each policy, but the insured can receive an advance payment of the contracted capital in case of temporary or permanent incapacity that prevents them from working and, therefore, affects their income, whether as a result of an accident or illness. In fact, with Liberty Seguros, the insured will be advanced the sum insured for death if he/she is diagnosed with one of the following serious illness or needs one of the following operations: cancer, heart attack, cardiovascular accident, kidney failure, bypass surgery, paralysis and transplant of vital organs, in accordance with the terms established in the special conditions of the policy.

 

Sources: (2018, May) Profile of life insurer buyer in 2017. In: ICEA. (2018, February) Almost 42% of retirement pensions in Spain are lower than the SMI. In: El Economista. (2018, February) Occupational Accident Statistics 2017 in Spain. In: GTG. Paola, M. (2017) How much does it cost to have a child? In: La Vanguardia. (2013) A burial costs an average of 3,545 euros. In: OCU.

https://www.libertyexpatriates.es/opencms/opencms/noticias/Three-reasons-to-buy-life-insurance.html

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When the community has a policy. Do I need home insurance in Spain?

A community policy in Spain is designed to protect the property of the community.

That is the overall building structure and communal areas. However, it does not usually cover your own windows and doors, nor your contents such as clothes and electronic goods, or the kitchen, as examples.

Therefore, your contents will not be covered by a community policy.

Furthermore, if there is a leak from a pipe in your property, that subsequently damages the property below for example, then you are most likely liable to pay for any damage done to your property and your neighbours.

The community policy will cover communal pipes and pipes in communal areas, but it will not cover damage caused from broken pipes within your home. They are your responsibility.

As a result we would recommend that as a minimum you take out a first loss home insurance policy in Spain to protect you in such cases as well as contents cover.

funeral in spain

What happens if one of our family in Spain passes away?

We live in a wonderful country with fantatsic weather and an enviable lifestyle, which means we normally give little thought to what happens if one of our family in Spain passes away.

Would you know what to do? Who do you advise? What is the legal procedure? What if the recently deceased wanted to be returned to their native country for burial?

These are all questions we should give some thought to before something happens.

During a traumatic time, not knowing the answers to the above questions will only add to the distress and frustration at a time when it would be most unwelcome.

It is not just a case of writing a Spanish will. Although that is very important. You should make someone aware of what you would like to happen to you should you pass away.

Funerals are organised very quickly in Spain, typically 24 to 48 hours leaving little time to organise everything. If the deceased had wanted to be returned to their native country then organising transport to that country is going to be complicated and expensive, unless it has been planned for.

When someone dies a doctor is called to confirm the death and issue the death certificate. From then you are normally put in touch with local funeral directors. How much does a funeral cost? Do you know what this process involves? What is your grasp of the local language like? Will they understand and respect the wishes of the deceased? Do you know what you will be asked to sign?

If the answer is any of these questions is “I don’t know” then please read on.

You might want to consider putting in place arrangements that will avoid all of the potential problems of having to make quick decisions, in a foreign language at a highly emotional time by making arrangements now.

There are generally two ways you can organise profesional help now for these difficult times of life that face us all in the future.

It is possible to organise funeral arrangements now that fit with your family’s particular requirements. One way is to make a monthly payment to a company that will take care of these funeral arrangements and the costs for you if you pass-away.

The alternative is to decide make a one off payment to a Company that will take care of your funeral in due course, fixing the Price now.

The advantage of the monthly payment option is that you don’t pay for the full funeral cost up front. The payments are revised from time to time to take into account your age so they will increase as the years go by. You have the flexibility to change the company providing the service if you feel the premiums are too expensive or the cover is no longer appropriate.

The benefit of paying a one off amount is that you do not have to worry about an increase in premiums as you get older, or an increase of costs of a funeral.

With a 24 hour contact number, in a language you understand you can feel comfortable that at such a delicate time someone who does speak the local language will be there to help you through.

These types of policy include a variety of options including the following:

  • No medical
  • Up to 8 people on the same policy
  • Mortuary expenses
  • Funeral arranagements
  • Repatriation if included in the policy

If you would like to discuss either or both of these products further please contact us at our Mijas or Marbella office.

Are you self employed and think private medical insurance in Spain is too expensive?

Well, you might be pleasantly surprised!

 

One of our insurance partners, who specialise in providing private medical cover, is offering the self-employed and their immediate family a very competitive product.

 

Not only are the premiums very attractive but you may be entitled to off-set up to 500 euros of annual premium against your tax liabilities, making the product even more affordable

 

This is full private medical insurance. No co-payments when you visit the doctor or have a diagnostic test. You pay the monthly premium and that is it.

 

It also includes 20.000€ of emergency worldwide cover and no grace periods except in the case of pregnancy.

 

The normal underwriting conditions apply and there must be a minimum of three members in the scheme to qualify for this product.

 

Remember, with the possibility that up to 500 € of premiums can be used in your tax calculations the actual cost could be even less.

 

Below is a table to help you calculate the cost

 

 

Age

Monthly Premium per person

0 to 19 years 39.01 euros
20 to 49 years 47.73 euros
50 to 54 years 56.91 euros
55 to 59 years 68.39 euros
Older than 59 years 108.33 euros

 

 

This offer is only available until the 31st July and if you are interested in knowing more about this offer or would like to take out a policy don,t hesitate to contact me

 

Kind regards

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Types Car insurance in Spain and some additional extras

There are various types of car insurance in Spain available and the purpose of this article is to go through some of the differences.

Whilst we all want to pay a low price for our car insurance in Spain make sure it includes what you would expect. You only find out if your insurance is any good when you make a claim.

In Spain there is a legal requirement to insure your vehicle. Whilst a basic policy may allow you to circulate on the road it probably won’t offer you the cover most people would want from an insurance policy.

The policies available include:

  • third party only,
  • third party, fire and theft,
  • third party, fire, theft and total loss and
  • fully comprehensive with or without an excess.

In addition to these main products, it is possible to add an array of add-ons to tailor the insurance to the client’s needs.

Let’s start with the main policies for car insurance in Spain:

Third Party

This is the legal minimum required in Spain. With this type of cover you are insured if you damage another person’s vehicle, for example. In simple terms, if there is a claim and it is deemed your fault the insurance company will pay out. The other driver will have their vehicle repaired.  However, any damage to your vehicle will have to be paid by you.

This type of policy only covers third party damage. Whilst it is the cheapest type of policy it could leave you with a large repair bill.

A basic third party policy will also not cover your vehicle in the event of theft or damage by fire.

Third Party Fire and Theft

This level of car insurance in Spain provides the legal minimum of third party insurance. In addition, you have the added benefit that if the vehicle is destroyed by fire or stolen that you are covered.

Third party, fire, theft and total loss

One more step up and you can also include total loss cover. This is not fully comprehensive cover. The difference here is that the additional of total loss cover on top of the third party protections explained before. In the event of the insurer declaring the vehicle a write-off (not worth repairing) then they will pay out an agreed sum to the policy holder. However, if you damage the vehicle but it is not a total loss then you will have to pay to repair the damage.

Fully Comprehensive

If your car is new or fairly new, then you will probably want to consider fully comprehensive car insurance in Spain. Not only do these policies cover your obligations in respect of damage to others it also includes protection for your own damage. So even if an accident is deemed your fault you will have a level of protection for your vehicle.

If for example, you drove into the back of another car then it will almost certainly be deemed your mistake. As a result, your insurance company will liaise with the other person’s company to repair their vehicle. In addition, your insurance company will organise the repair of your vehicle.  All you have to do is pay the excess. This the amount you pay to repair your vehicle before the insurance company pays. If the damage to your car is less than this amount, then it will not be worth making a claim and you can pay for the repair. If, however, it the repair bill is higher than the excess then the insurance company will pay the difference.

The level of excess is agreed by you with the broker at the outset. For a new car it is possible to ask for an excess of zero. The insurance company would then pay all the cost of the damage, even if the accident was your fault. However, in order to reduce the price of car insurance in Spain most people opt for an excess of between 100 and 300 euros. Clearly the higher the amount of excess the lower the premium.

Accident and breakdown assistance, windscreen protection and courtesy cars.

These days a lot of insurance companies include these services as standard. However, not all insurance companies do. If they are included, we do not recommend removing them and if they are not we suggest you ask for them to be included.

It is illegal to tow a car in Spain. Therefore, if you do not have accident or breakdown recovery you will have to pay. The tow truck may drive you first to the cash machine before taking you to your destination or the garage to ensure payment.

If a stone hits your windscreen, then your visibility may be effected or the crack may gradually get worse. If it is included in your insurance you can usually make an appointment or possibly roll up to a specialist windscreen replacement centre, such as Carglass. They will repair or replace your windscreen and organise with the insurance company directly to receive payment.

We are all reliant on our vehicles to get to work, to take the children to school or to do the weekly big shop.  If it is going to be in the garage for a number of days whilst it is being repaired, then if you don’t have a courtesy car you will have to rent one.  In some tourist areas this can be difficult in the summer and also very expensive.

Remember if the accident was not your fault then you do not pay for the repairs to your vehicle.