Which insurance is compulsory in Spain and which is optional

Key rules

• No general duty: No general non-motor insurance is compulsory by law for private individuals or homeowners in Spain, though mortgage lenders typically require home insurance.
• Lender's insurer: A mortgage lender may require home insurance on the property but must accept an equivalent policy from any insurer you choose.
• Lease clause: A tenant insurance clause in your lease is valid if not abusive, and breaking it can end your tenancy.
• Community policy: The community's policy covers common areas, not the inside of your flat.
• Activities: Hunting, dangerous dogs, firearms and many tourist lets carry compulsory liability cover.

What the law requires

No general non-motor insurance is compulsory by law for private individuals or homeowners in Spain. Home insurance is not a legal duty, even though mortgage lenders typically require it. The real requirements come from lenders, landlords, communities and specific activities.

Compulsory cover does exist in a few places:

• Motor vehicles. Car insurance is required by law.
• Newly built homes. The developer must arrange a ten-year structural defects guarantee (seguro decenal). If you buy new, ask for it.
• Certain activities. See the section below.

Activities that carry a legal minimum

If you do any of these, check the rules before you start:

• Hunting. You need the compulsory hunter's insurance (seguro obligatorio del cazador). Regional law may require more.
• Dogs. Owners of potentially dangerous dogs must hold liability insurance, with minimum cover of 120,000 euros. A newer animal welfare law also brings third-party liability insurance for dog owners, phased in. Ask your regional authority what applies to your dog now.
• Firearms and some fishing. A firearms licence requires liability insurance. Anglers need cover in some cases.
• Tourist lets. Many regions, such as Catalonia, Andalusia and the Valencian Community, require civil liability insurance for holiday accommodation. The amounts vary by region.

If you have a mortgage

Your lender may require insurance on the property, usually against fire and related damage, to the property's value. It must accept an equivalent policy from any insurer you choose. It cannot impose its own insurer.

• It cannot charge you a fee for analysing another insurer's policy.
• It cannot raise your interest rate or worsen your terms because you chose a different insurer.
• It can offer discounts (bonificaciones) if you take its voluntary products. Compare the cost and benefit shown in your offer (FEIN).
• It may require life or payment-protection insurance, but must accept equivalent policies from other insurers.
• It may be named as beneficiary of your policy.

The decision below helps you choose between its policy and your own.

If you rent

A landlord can put a clause in the lease requiring contents or liability insurance. These clauses are valid if they are not abusive. Landlords enforce them mainly by threatening to end the lease for breach, and many only ask for proof in some cases. Read your lease before you sign. If the clause is there, take the policy, because breaking it can cost you the tenancy.

If you own in a community

A community of owners can require insurance, but the property law does not itself compel it. It would be set in the community's statutes or by a general meeting decision passed by the needed majority. Most communities already have a policy for the common areas and liability, and the administrator holds it.

That policy does not cover the inside of your flat. You remain responsible for your interior and for liability, and the community can claim damages from you if you are negligent.

Sensible extras

Even where nothing is compulsory, contents and liability cover are worth considering. A water leak into a neighbour's flat is the classic case. Regional rules may add requirements, so check with your regional authority. The checklist and documents below show what to ask for and read.

Choosing between options

Should you take your lender's insurance or arrange your own?

• Arrange your own policy: It fits when another insurer offers the same cover as the lender requires at a lower total cost than the lender's policy.

• Take the lender's policy: It fits when the bonus the lender offers for taking it outweighs the extra premium, and the cost and benefit are shown in your offer.

Ask the lender in writing for the cover it requires, then compare its policy plus bonus against an equivalent policy from another insurer. Choose whichever costs less overall, knowing the lender cannot charge to analyse your policy or worsen your terms for choosing another insurer.

Documents you need

• Your signed lease, to check whether it has a clause requiring you to hold contents or liability insurance.

• Your community's statutes, to see whether they require owners to hold insurance.

• The record of the community's general meeting decision on insurance, if the community passed one. The administrator can give it to you.

• A copy of the community's own policy for the common areas, held by the administrator, so you know what it covers and what you must insure yourself.

Checklist

• Read your lease and look for a clause that requires contents or liability insurance.

• Ask the community administrator for the statutes and the community's policy, and check what the policy covers.

• Ask your mortgage lender in writing which cover it requires on the property.

• Ask another insurer for a policy with the same cover and offer it to your lender in place of the lender's own.

• Ask your regional authority whether your activity (hunting, a dog, a tourist let or a firearm) needs liability insurance, and the minimum amount.

• Ask the developer for the ten-year structural defects guarantee (seguro decenal) if you buy a newly built home.

What to watch out for

• Some activities do carry a legal minimum: Hunting, owning a potentially dangerous dog, holding a firearm licence and renting out holiday accommodation in many regions each require liability insurance. Potentially dangerous dogs need at least 120,000 euros of cover. Going without can leave you uninsured and in breach of the rules. Ask your regional authority which cover your activity needs and the minimum amount before you start.

• A lease clause can end your tenancy: A landlord can require contents or liability insurance in the lease. If you do not hold it, the landlord can use the breach to threaten to end the lease. Read the clause before you sign, take out the policy, and keep a copy of it to show if asked.

• The community's policy does not cover your flat: The community's policy usually covers the common areas and liability. Your flat's interior and your own liability stay with you, and the community can claim damages from you for negligence. Ask the administrator what the community policy covers, then insure the rest yourself.

• Your lender cannot force its own insurer on you: A lender can ask for cover on the mortgaged home, but it must accept an equivalent policy from the insurer you choose. A bonus for taking its products can make its policy look cheaper than it is. Compare the bonus with the premium difference, and send your own equivalent policy if it costs less overall.

Frequently asked questions

Do I need liability insurance for my dog in Spain?

Yes, if your dog is classed as potentially dangerous you must hold liability insurance with a minimum cover of 120,000 euros. A 2023 animal welfare law also brings in third-party liability insurance for dog owners generally, phased in through regulation, so ask your regional authority what applies to your dog now.

Can my lender charge me for checking another insurer's policy?

No, a lender may not charge a fee for analysing the alternative policy you choose. It also may not raise your interest rate or worsen your terms because you picked another insurer. It can still offer a bonus (bonificación) for products you take voluntarily.

Can my landlord make me take out insurance as a tenant?

Yes, a landlord can put a clause in the lease requiring you to hold contents or liability insurance, as long as the clause is not abusive. If you break it, the landlord can threaten to end the lease, even though many landlords only ask for proof in some cases.

Does the community's policy cover the inside of my flat?

No, the community's policy usually covers the common areas and liability, and the administrator holds it. You stay responsible for your own flat's interior and for liability. The community can claim damages from you if your negligence causes harm.