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How to calculate home insurance in Spain

 

Our Property is usually the biggest investment we make in our lives and not only could we lose it, for example, in the event of a fire we could also lose everything in it. Our memories, photos, important legal documents.

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

Whilst we cannot replace the memories or photos you can make sure that you are suitably protected so your property is rebuilt and the costs involved in reproducing your important legal documents are covered.

The main protections of home insurance in Spain are usually Split into building insurance and contents insurance.

 

Buildings cover:

To calculate your buildings cover you need to calculate the rebuild cost 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 a number of factors that do not alter the rebuild cost. For example, the area may be very desirable. Perhaps it has good schools nearby, some wonderful views or maybe good connections to other towns and cities. These factors affect the market value but they don’t change the rebuild costs.

The rebuild costs should also make sure your home insurance in Spain includes an amount for clearing away debris, planning permissions, architect and surveyors fees and IVA (VAT plus other connected costs.

The insurance companies themselves will calculate an estimated cost per square metre based on the post code but this is very general. You need to bear in mind the quality of the build. If the materials used were of higher quality than normal then this needs to be factored in.

Do not be tempted to undervalue your property when taking out the insurance. If, for example, the insurance company has suggested a figure for rebuild, 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.
  • You leave yourself open to a claim of under insurance. When you take out a policy the insurer expects the premium paid to reflect the risk they are taking. If the property is valued at 300,000 but you are paying a premium for a policy worth 150,000 then you are underinsured. You will have paid the insurer a lower premium than the actual risk is worth. This would enable the insurer to reduce the payout to you. So not only would your payout not be sufficient to rebuild your property it could be further reduced because you have not paid the correct premium for the risk.

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

How to calculate your contents insurance in Spain

The best way to calculate the amount you need for your contents cover in your Spanish home insurance policy is to go from room to room adding up everything. Go into one room and take a look at what is in there. Curtains, curtain rail, wardrobes, clothes, chest of drawers, beds, matresses, shelving etcetera. Add it up and write down the figure. Then move to the next room and do the same.

It is particularly important to remember that your kitchen forms part of the contents of your property and not part of the buildings insurance.

When it comes to collectable items, antiques and jewellery it might be necessary to have the ítems 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. These should be itemised in the policy. You may also be asked to provide a valuation i fan individual ítem excedes a certain amount. In the case of jewellery this usually means getting it valued by a reputable local jewellers.

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

In summary

Insurance is not an emotional purchase. It doesn’t make us feel good to buy it but it does give peace of mind. However, it only does that if you take out the appropriate level of cover and pay the relevant premium.

Please think about the cover you require to avoid disappointment at what will probably be a very difficult time.

 

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

Decorativa

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.