Which insurance fits you as a tenant, owner, family or retiree

Terms used

• Contenido — Contenido is the part of a home policy covering your furniture, belongings and valuables.
• Responsabilidad civil — Responsabilidad civil is liability cover for damage you accidentally cause to other people or their property.
• Continente — Continente is the part of a home policy covering the building structure, fixtures and installations.
• Decesos — Decesos is a funeral-expenses policy that pays for arrangements when you die.
• Convenio — A convenio is the collective agreement setting pay and conditions for your sector or company.
• Retribución flexible — Retribución flexible is a scheme where you take part of your pay as benefits such as insurance.
• Bonificación — A bonificación is a discount a lender gives on your mortgage rate when you buy extra products.

Key rules

• Tenants: You insure your belongings and liability, not the building.
• Lender's insurer: Your lender may require home insurance but must accept an equivalent policy from the insurer you choose.
• Mortgage life cover: Life insurance linked to your mortgage ends when the loan ends.
• Employer cover: Check your convenio before buying life or accident cover, as your employer may already provide it.
• Age limits: Life and accident cover usually has joining and renewal age limits, commonly around 65 to 75.

Start with whether you rent or own

Tenants need less than owners. As a tenant you need contenido and responsabilidad civil. The landlord insures the building, so you do not.

Consider adding cover for damage to the landlord's property, such as fixtures and fittings. You can be liable to the landlord for water or fire damage.

Owners need continente, contenido and liability. Continente covers the structure, fixtures and installations. Contenido covers your furniture, belongings and valuables. Policy wording decides which items count as which.

If you own a flat in a community, the community's policy covers the structure and common areas. Ask for a copy, so you insure only your interior and do not pay twice.

If you let out your property, check that your policy covers letting, loss of rent and a tenant who stops paying.

If you have a mortgage

Your lender will want continente at least up to the amount it requires. It may require home insurance, but it must accept an equivalent policy from any insurer you choose. It cannot impose its own insurer.

It also cannot charge you to analyse an alternative policy. It cannot raise your rate or worsen your terms because you picked another insurer. It may still offer a bonificación, a better rate, if you buy voluntary products. Check the cost and benefit in your offer and the policy conditions before accepting.

Life or payment-protection insurance linked to the mortgage may be required in the same way. Equivalent cover from another insurer must also be accepted, and the lender may be named as beneficiary. Mortgage-linked life insurance ends when the loan ends.

If you have a family

If one person earns most of the income, consider term life insurance. Aim for the mortgage balance plus several years of income. Accident or disability cover for the earners is also worth considering.

Your home policy usually covers your children's liability. Some schools and sports clubs include accident cover. Children's own accident cover is often cheap. You can also add legal protection.

If you are retired or older

You need less life insurance. Life and accident products usually limit the age at which you can join or renew, commonly around 65 to 75. Premiums rise sharply with age.

Health, decesos and liability matter more. Decesos premiums are often age-based, and they have entry limits too, so compare early.

Dependency cover, for long-term care, can matter as you age. It is costly and has underwriting limits.

If you are employed, check before you buy

Your employer may already insure you. Many collective agreements (convenios) require a life and accident policy for workers. It covers death or permanent disability from a work accident or occupational illness. The sum is usually a few tens of thousands of euros and varies by sector. It is common in construction, metals, chemicals and transport, but not universal.

Some employers also offer group life and health cover through retribución flexible.

To find out:

1. Find the convenio named on your contract and payslip.
2. Read its insurance clause.
3. Ask HR for the certificate or policy conditions and see which risks are covered.

If an employer failed to take out a mandatory policy, it may have to pay the sum itself. Social Security covers work accidents and illness separately.

Use the decision, documents and checklist below to pick your set.

Choosing between options

Which extra policies fit your household beyond home insurance?

• Term life and accident cover: You have children or a main earner, so a term life policy equal to the mortgage and several years' income, plus accident or disability cover, protects the family.

• Health, decesos and liability focus: You are a retiree, since life and accident products often have joining limits around 65 to 75 and premiums rise sharply with age.

• Mortgage-linked life or payment protection: Your lender asks for it; you can offer an equivalent policy from another insurer, but this cover ends when the loan ends.

• Dependency (long-term care) cover: You are an older resident worried about care costs and accept that it is costly and has underwriting limits.

Match the policy to who depends on your income and your age: families with dependants lean on life and accident cover, retirees on health, decesos and liability.

Documents you need

• Your employment contract, which names the collective agreement (convenio) that applies to your company.

• Your latest payslip, which also names the collective agreement that applies to you.

• The insurance certificate or policy conditions for any life or accident policy your employer holds for you, which you ask HR for.

Checklist

• Check whether you rent or own, because tenants need contents and liability cover while owners also need building cover.

• Ask the community of owners for its policy if you own a flat, so you insure only the interior and avoid doubling up on the structure.

• Ask your lender for the minimum building cover amount if you have a mortgage, and compare equivalent policies from other insurers.

• Check that your policy covers letting, loss of rent and tenant non-payment if you rent out your property.

• Find the collective agreement named on your contract and payslip, and read its insurance clause.

Frequently asked questions

Does a tenant need to insure the building?

No, a tenant does not need to insure the building, because the landlord insures the structure. You need contents cover and liability cover, and you can add cover for damage you could cause to the landlord's fixtures, such as water or fire damage.

Can I still get life insurance as a retiree?

Yes, you can often still get life or accident cover, but most products have a joining and renewal age limit, commonly around 65 to 75, and premiums rise sharply with age. At that stage health, decesos (funeral cover) and liability cover are usually more relevant.

Does my job already give me life or accident insurance?

Possibly, because many collective agreements (convenios) require the employer to take out a life and accident policy for workers, with a sum that varies by sector. Ask HR for the certificate or policy conditions before you buy your own cover.

What happens to life insurance linked to my mortgage when the loan ends?

Life insurance linked to a mortgage ends with the loan. If your family still depends on your income, consider a separate term life policy sized to your income over several years.