Our house, our refuge, our castle … in short, our home
Not everyone knows that taking out a home policy is not mandatory except when the house is mortgaged. That is the only situation that requires a person to have a policy that protects their home in Spain. However, it is worth saying that, although it is not mandatory, it is advisable and necessary to be prepared for any eventuality.
Our home is our most precious asset and if we want to avoid surprises and unforeseen events, it is important to get an insurance that gives us the peace of mind knowing that whatever happens in our home there will be someone who is responsible for solving it.
The first thing you should know is that you do not have to contract your home insurance with the entity that is granting you the mortgage but you can compare prices in the market and hire the product that provides the coverage that best suits your needs.
Until a couple of years ago, banking entities could condition their mortgage lending with an “obligation” to contract some linked products, such as the Home insurance. But now, with the approval by the European Parliament of the Mortgage Credit Directive, banks are prohibited by law from linking a mortgage to the purchase of insurance. Your insurance company might include a clause in your policy registering your lending bank as mortgage beneficiary, to cope with the request of the bank.
Then, the key question is, what is the best insurance for my house? In this article we give you the keys so that you can make the best decision when taking out your home policy insurance.
The value of the building
There are two criteria to assess a home insurance policy: the building and Contents. The ‘Building’ section of your policy refers to the costs of rebuilding your home, not to the market value or the cadastral value. However, it is of key importance to declare the whole size of the property, according to the cadastral property details.
The value of the contents
The ‘Contents’ section of your policy refers to economic valuation of all the household goods: furniture, including kitchen furniture, electronic devices, musical instruments, jewelry or other objects of special value. Check that the imputed valued of the content can cover the value of all those things. Although in many cases the sentimental value is higher than the economic one, the best advice is to add all the important items in the content to secure them.
Besides worrying about the Building and the Contents, there are other very interesting and useful covers to consider that not all insurance companies offer. Liberty Seguros is offering among others the following great covers:
• Up to 1000€ com-pensation for the additional water consumption costs due to water leakage when you take out their premium home policy.
• An unrivalled DIY Service, to avoid the hassle of assembling packed furniture, fitting curtain poles, hanging pictures, etc.
• Damage to your garden furniture, even it has been damaged by adverse weather conditions.
• Your goods will be insured on a “value as new basis”.
• Legal defence, claims for damages and IT assistance service.
• Home assistance, 24 hours a day, 365 days a year, with just a simple and FREE telephone call on 900 243 65, in English or German.
• A return ticket to your home in Spain if you are abroad in your home country should an unforeseen claim happen.
Apart from all these advantages, Liberty Seguros has an extensive network of over 300 brokers and agents that are dedicated to providing unbiased, friendly and expert advice, because every home is different and such an important decision deserves a face to face chat with a professional insurance advisor, in your own language, to discuss the most suitable cover for your home in the sun.
With insurance, not only for home, but also car, life, pet, business, commercial, leisure, public liability and personal injury, Liberty Seguros is considered by far, the expat’s number one choice in Spain today. To find out more visit www.liber-tyexpatriates.es or simply call 91 342 25 49.