What the building's community insurance covers and special charges (derramas)

Terms used

• Comunidad — The comunidad is the owners' association of a building, which runs and pays for the shared parts.
• Derrama — A derrama is an extra charge owners pay, split by share, when the community needs money beyond its regular fees.
• Franquicia — The franquicia is the excess: the part of a claim the insurer does not pay.
• Continente — Continente is insurance for the building structure and fixtures of your own unit, as opposed to your belongings.

Key rules

• Community policy: It insures the common elements, not the inside of your flat unless the policy says so.
• Your own cover: You need your own continente and contents insurance.
• Excess: Who pays the franquicia depends on the policy and community agreements, not on a fixed law.
• Derrama: Uninsured damage, excesses and budget shortfalls can lead to a derrama split by your share.

The community policy insures the building, not your flat's interior

The comunidad's policy covers the common elements. Your own policy fills the gaps. Common elements are the structure, roof, facade, stairs, lifts, shared installations and garden.

The usual risks covered are fire, explosion, water damage, storms and glass breakage. The policy normally includes the community's civil liability too, and sometimes legal defence.

Private parts are covered only if the policy says so. Ask the administrator for a copy of the policy and read what it lists.

What you need to insure yourself

The community policy does not cover the inside of your unit. You need your own cover for the building side of your flat, called continente. It should include:

• Interior finishes: paint, plaster, floors and tiles.
• Internal pipes and wiring.
• Built-in wardrobes, fitted kitchens and bathroom fittings.
• Doors, windows and glass.
• Water damage from internal pipes.

Contents are not covered by the community policy either. Furniture, appliances and valuables need your own contents cover.

Who pays the excess

The excess is called the franquicia. It is the part of a claim the insurer does not pay. The property law does not say who bears it. The policy terms and the community's own agreements decide.

In practice, the community usually pays when the damage is in common elements. The owner responsible usually pays when the damage starts in a private unit. A community agreement can split it differently, so ask the administrator whether your building has one.

When you can face a derrama

• Works and repairs.
• Damage the insurance does not pay.
• Excesses.
• A shortfall in the budget, including one caused by owners who have not paid their fees.

You pay in proportion to your coefficient, which is your share of the building. A bigger flat usually means a bigger share.

How owners approve the work

Ordinary maintenance and mandatory works generally need a simple majority of the owners present and of the coefficients present. Works that are not mandatory generally need a higher majority. Some new installations need three-fifths. The majority depends on the type of work, so ask the administrator before you vote.

Reforms in 2019 and in 2022-2023 made some works, including energy efficiency works, easier to approve.

What to do

1. Ask for the community policy and the latest meeting minutes before you buy.
2. Check for any agreement on who pays excesses.
3. Ask whether derramas are approved or planned.
4. Take out your own continente and contents cover.

The questions below cover common cases.

Frequently asked questions

Who pays the excess when the community makes a claim?

The policy terms and your community's agreements decide who pays the excess (franquicia). Usually the community pays when the damage is in common areas, and the owner responsible pays when the damage starts in a private flat. Ask your administrator for the policy and any agreement that changes this.

Does the community policy cover the inside of my flat?

No, the community policy does not normally cover the inside of your flat. You need your own cover for paint, floors, tiles, internal pipes and wiring, fitted kitchens, windows and glass.

Can the community charge me a derrama for damage that insurance does not pay?

Yes, the community can charge owners a derrama (extra charge) for uninsured damage, excesses or budget shortfalls, split by each owner's share of the building. Arrears from other owners can also lead to one. Ordinary upkeep and mandatory works usually need a simple majority, while other works often need a higher majority.

Do energy efficiency works need a higher majority to approve?

Not always, because reforms in 2019 and 2022-2023 made some works easier to approve. Non-mandatory works generally need a higher majority, and some installations need three-fifths. Ask your administrator which majority applies to the work proposed.