Did you know that 76% of homes in Spain have home insurance in place, even though it is not compulsory?
This figure from UNESPA (Social Report on Insurance 2023) reflects how widespread this type of protection is. In this article, we explain what home insurance is, what it covers, how to choose the best policy for you and the most frequently asked questions.
The culture of prevention in Spain is firmly established, for very good reason given how useful home insurance can be in almost any situation.
Despite the widespread take-up of home insurance, there are still many aspects that raise questions or are simply not well understood. That is why, at Realia, we explain everything you need to know about home insurance, its cover and how to choose the most suitable policy for your property.
What is home insurance?
Home insurance is a policy that protects your home and the belongings inside it against damage or unforeseen events.
It includes three main areas of cover:
- Buildings insurance: this refers to the structure of the property, in other words everything that forms part of the structural fabric of the home, such as the walls.
- Contents insurance: this covers the household belongings in the property, such as furniture, electrical appliances, jewellery (if declared in advance under the home insurance policy), clothing, and so on.
- Public liability: this covers material damage and personal injury caused to a third party.
A home insurance policy can include a wide range of cover options, which vary depending on the insurer and the type of policy taken out. Some of the most common are as follows:
- Fire or explosion in the home.
- Power surges or damage caused by a pipe in poor condition.
- Gas leaks, whether in your own property or in a third party’s property.
- Burglary or theft.
- Mugging outside the home.
Like many other types of insurance, home insurance policies may also allow for additional cover options, (depending on the insurer):
- IT support.
- Appliance repairs.
- Handyman services.
- Legal advice.
In fact, the growing demand for these services has led many insurers to include them by default in the standard home insurance cover.
What is buildings insurance in a home insurance policy and what does it include?
When we talk about buildings insurance in a home insurance policy, we mean all the elements that form part of the property itself. In general, these are all the fixed elements belonging to the dwelling.
Buildings insurance in a home insurance policy includes the following elements:
- Household installations: water pipes, gas pipes, electrical wiring and telecommunications cabling.
- The structure of the property: walls, floors, roofs, floor finishes and sockets.
- Decorative features: parquet flooring, wall paint, carpets, awnings, plaster ceilings and mouldings.
These optional cover options make it possible to tailor the policy to the specific needs of each home, providing added value that more and more insurers now include as standard.
Why is taking out home insurance a good idea?
The main purpose of taking out home insurance is to provide financial protection.
The areas covered by these policies can involve significant expense if you have to deal with them at your own cost.
In addition, home insurance includes public liability cover, which means having the appropriate financial and legal protection in relation to any damage caused to third parties or their properties, among other situations.
Finally, home insurance also provides peace of mind, by protecting something as valuable as the property where the family lives.
How do you choose the best home insurance policy for your property?
There is a very wide range of home insurance products on the market today. This makes it possible to choose cover that matches each customer’s needs, but it also means having to identify which options are the most suitable.
Follow these tips to find the perfect home insurance policy for your property:
- First assess the essential needs that this policy must cover.
- Look for the greatest possible level of customisation according to the type of property.
- Check the limits of cover and exclusions, and assess their advantages and disadvantages.
- Review the additional cover options and whether they can be included in the policy.
- Choose a home insurance policy with good value for money, making sure that the insurer is reputable, trustworthy and well established in the market.
Difference between buildings and contents insurance in a home insurance policy
One of the main questions people have about home insurance is the difference between buildings and contents insurance.
As mentioned above, buildings insurance in a home insurance policy refers to all the elements that form part of the property’s structure, from its installations to fixed decorative features that were not included in the original construction.
Contents insurance in a home insurance policy, therefore, covers all the goods or belongings kept in the home, whether furniture, clothing, food, electrical appliances, electronic devices, personal possessions or decorative items.
Frequently asked questions about home insurance
What should I consider when taking out home insurance?
If you are considering taking out home insurance, do not forget to assess the following points:
- Cost of the policy.
- Public liability cover.
- Buildings insurance cover.
- Contents insurance cover.
- Limits of cover.
- Exclusions.
- Available additional cover options.
- Trustworthiness of the insurer.
Can I change the cover under my home insurance policy?
You can change any aspect of the cover under your home insurance policy at any time, but you should bear in mind the following factors:
- You must notify the insurer formally of the change, so that it is actually included in your policy.
- The insurer must assess whether or not the requested cover is available under its product.
- The cost of the policy may need to be reviewed.