Especially when we are new residents in Spain, we are unfamiliar with the local rules in terms of real estate. One of the common doubts when one rents or buys a property concerns the purchase of a home insurance. Sometimes you are unsure whether it is compulsory to have one, what the contract covers, if you are actually the one for has to pay for it, etc… This article will provide the information you need to know before contracting a home insurance in Spain.
First thing first: you do not have to get a home insurance
Some of you might be relieved that a contracting a home insurance is not mandatory. However, you might be required to get one due to the mortgage or the rental agreement. The bank that grants the mortgage may ask you to purchase one. It usually covers you in case of fire and sometimes in case of other incidents or damages. In other situations, you might be forced to take a home insurance as it implies a reduction in the mortgage payment.
When renting a property, the same situations could occur too. However, some landlords may require you to hire a home insurance. A rental agreement is a private agreement between the parties, which may stipulate any type of clause that is not contrary to the law of urban leases.
Make some thorough search before
Before hiring a home insurance, we advise you to read each and every one of the conditions of the policy. Do not hesitate to ask everything that is unclear to avoid unpleasant surprises. Be sure to understand what the insurance covers and what not. Also assess whether your activity, type of housing and specific circumstances are worth hiring it or not.
You should know that there are several types of policies: continent, content, damage to third parties, and so on. The clauses can simply refer to the value of the property. It can also include covering furniture, appliances and electronic devices, jewellery or other objects, for the chosen amounts.
Some insurances also offer repair services, with a number of annual hours of professionals to make small arrangements at home. The conditions may vary if it is a first residence or a holiday home, if it is of habitual use or if it is rented. The building you are living in may also be protected by an insurance. If it is the case, make sure what it covers to avoid duplicating coverage and wasting money in vain.
Review both the general and the particular conditions applied to your specific case. For instance, if a tap breaks and causes a flood on the apartment below, you might discover that the insurance covers the broken tap but not damages to third parties. It is essential to clear these aspects before deciding to invest in an annual policy.
The most common issues
One of the most common misunderstandings in home insurance is franchising. For example, insurance may cover damage to household furniture, but perhaps only up to a specific amount or, conversely, from a certain amount.
Another problem is the internal rates that some companies apply when calculating compensation. You may think that if you break any electronic device the insurance company will cover the entire price when they actually only offers a percentage.
Do I need an interpreter?
We have probably all been there. Feeling the frustration of not being able to understand every term of a policy is a dreading experience. The language of the contract is often too vague or not informative enough.
In addition, it is a fairly abrupt commercial sector, and sometimes commercial information is incorrect or incomplete. You should read the entire policy and not only rely on the advertising summary. Make sure you understand every single point, otherwise we recommend you to always ask anything before hiring anything.
Buying or rent in Barcelona
Once you have carefully read our tips about home insurance in Spain, why thinking about settling down? Whether you want to buy or rent a high-quality property in Barcelona you can count on us. At ChicRoom Properties, our team of experts is fully dedicated to accompany you in your property hunt. They will offer adequate options according to your expectations and provide full support all along the process. Visit our website here for browsing our catalogue of stunning properties for rent and for sale in Barcelona.
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