Does insurance cover squatters (okupación)?

Terms used

• Okupación — Okupación is squatting: someone occupying a property without the owner's permission.
• Carencia — The carencia is the waiting period after you take out a policy before you can claim.
• Defensa jurídica — Defensa jurídica is legal-defence cover in an insurance policy that pays for a lawyer and court costs, up to a cap.
• Procurador — A procurador is the court representative who files and handles paperwork in a case alongside your lawyer.
• Impago de alquiler — Impago de alquiler is insurance for landlords that covers rent a tenant fails to pay.
• Desahucio — A desahucio is a court eviction of a tenant from a property.

Key rules

• Ordinary policies: A standard home policy generally does not cover squatter damage, lost rent or legal costs.
• Specific products: Okupación products and legal-defence cover give limited help, with waiting periods, exclusions and caps.
• Tenants with contracts: A tenant who stops paying falls under rent-default cover, not squatter cover.
• Your lawyer: Under defensa jurídica you can choose your own lawyer, but fees stop at the policy cap.

Does your policy cover squatters?

Usually not. An ordinary home policy covers damage from insured events such as fire or water. Damage by squatters, lost rent and legal costs are normally excluded.

Some insurers do offer limited help. It comes from two places: a specific okupación product, or the defensa jurídica part of a home policy.

Specific okupación products

Some insurers sell these as an add-on or a separate product. Depending on the insurer, they may pay for:

• legal defence to get the squatters out
• damage caused by squatters
• lost rent for a set number of months
• sometimes alternative accommodation or lock changes

Expect limits. Many have a waiting period (carencia) before you can claim. Many apply only to homes that were occupied or let when you took out the policy. They exclude cases where you allowed the person in, and they cap the amounts. Read the exclusions before you buy.

Defensa jurídica

Defensa jurídica may pay a lawyer and a procurador (the court representative) for your actions against squatters. That can be a criminal complaint or a civil action to recover possession. It only helps if the policy expressly includes this.

Usual limits:

• a cap on costs per claim
• a waiting period of some months
• no cover for proceedings started before the cover began
• no cover for disputes with the insurer itself
• no cover for tenants with a contract, who fall under eviction or rent-default cover instead

It normally does not pay fines, damages or lost rent. You can choose your own lawyer, but fees are limited to the policy cap.

A tenant who stops paying is a different case

A tenant with a contract who stops paying is not a squatter. For that you need impago de alquiler cover. It typically pays unpaid rent, sometimes utilities and tenant damage, and the legal costs of eviction (desahucio). It pays up to a maximum number of months of rent, often 6 to 12, or a capped total per claim.

Insurers screen the tenant first. They usually want rent at no more than about 30 to 35% of net household income, a stable job or a pension, and payslips or tax returns. The timeline and documents below show the steps.

Claims usually start after one or two unpaid months, and the waiting period is typically 1 to 3 months after signing. Exclusions include:

• tenants who were not screened
• rent unpaid before the policy started
• rent above the insured limit
• unregistered or short-term tourist lets

Start legal proceedings promptly, with the insurer's lawyers.

What to do

Ask your insurer in writing whether the policy covers okupación, what the waiting period is, and what the caps are. If you want protection, compare products on those points and on the exclusions, not on price alone.

Timeline and deadlines

• Screen the tenant's income and job with the insurer: before you sign the lease

• Start eviction proceedings with the insurer's lawyers: promptly after the first claim

Documents you need

• Your tenant's employment contract showing a stable job, or proof of a pension, to pass the insurer's solvency screening for impago de alquiler cover

• Your tenant's recent payslips, or their tax return, to show the rent is not above about 30 to 35% of net household income

Frequently asked questions

Can I choose my own lawyer under defensa jurídica?

Yes, you may freely choose your own lawyer, but the insurer pays fees only up to the cap in your policy. Anything above the cap is yours to pay. Cases that began before the cover started are excluded.

Does a specific okupación product pay my lost rent?

Yes, some specific okupación products pay lost rent, but only for a set number of months. They can also cover legal defence, damage caused by squatters and sometimes alternative accommodation or lock changes. They often have waiting periods and amount caps, and exclude cases where you allowed the entry.

Does impago de alquiler cover a tenant who stops paying?

Yes, impago de alquiler cover pays unpaid rent and the legal costs of eviction when your tenant stops paying, up to a maximum number of months, often 6 to 12. It covers tenants with a contract, not squatters, and only if the tenant was screened before signing.