Home insurance claims process in Spain

Although the principle of insurance cover is standard worldwide, how home insurance claims are dealt with may be different to in your country of origin.

The good news is that most foreign residents in Spain have been surprised at how quickly and easily their claims are handled and settled. You are unlikely to have to produce receipts, boxes or other proof of purchase for everything you own, for example. A loss adjuster will normally carry out the valuation during a visit to your home, even if the claim is only for a very small amount.

Cash payments rather than replacement

It is common in many countries for insurance claims departments to arrange replacement of damaged, lost or stolen items via their network of suppliers; if your television or computer is stolen during a burglary, for example, the insurers normally have a deal with an electronics store and will deliver a new, comparable model to you in settlement of your claim. In Spain, though, this is rarely the case. Once a valuation has been reached, the money will simply be transferred into the bank account your premium payments come from.

Insurance companies in Spain often have a network of approved building contractors, electricians and plumbers, who will typically carry out a site inspection when you report a claim. But they may not be available to do the work for you – you might just be paid the amount of their estimate and have to source your own tradesperson to carry it out.

Strict liability in third party claims

Where a problem with your property causes damage to another, insurance companies in some countries may refuse to pay for repairs if they cannot prove it is your fault, or if the cause is not a scenario covered by your policy.

A common example of this is where a pipe bursts in your apartment and causes water damage to the flat below. In many countries, your insurer is not liable for your neighbours' repairs unless your own negligence, or accidental damage, can be proven.

In Spain, liability to third parties is 'strict', meaning the owner of the property causing the damage is automatically legally responsible for fixing it, whether or not it is their fault. This means water damage to your downstairs neighbour following a burst pipe in your flat will be covered by your insurer in Spain without question.

Note that any liability claim does not involve paying an excess, even if you have one in place for loss of or damage to your own buildings and contents.

The Consorcio

All household insurance covers damage directly resulting from fire or weather conditions. But if these conditions are severe enough to cause mass destruction, your insurers may turn down the claim and tell you to contact the Consorcio.

The Insurance Compensation Consortium, referred to as the Consorcio, is a government agency which handles claims for damage from forest fire, floods from ground level (inundación laminar) – but not ingress of rainwater from above - earthquakes, exceptionally high winds, or similar natural disasters once the affected geographical area has been declared by the State as a 'catastrophe zone'.

To file a claim with the Consorcio if advised to do so by your insurance company, you should complete a form, provide copies of your policy schedule and of the receipt from your bank proving your premium has been paid. This receipt will show the percentage of the premium paid to the Consorcio. You will also have to provide your official identification (ID) and contact details. A loss adjuster from the Consorcio will then visit your property, value the damage and, if it is considered to be consistent with the effects of the natural disaster in question, the sum decided upon will be transferred into your bank account.

More and more insurance companies, nowadays, are tending to handle Consorcio claims on behalf of their policyholders (customers), meaning you may not have to take any action yourself. Those companies which do not do so will, however, provide full details on how you can make a claim yourself.

Claims involving a third party

In many countries, where your claim is for damage caused by someone else whose identity is known – such as a car crashing into your boundary wall – you will still be paid by your insurance company. They will then seek to recover their costs from the third party's insurers; in this case, the driver's motor insurers. This is known as 'subrogation' and, if your policy has an excess, will normally look to recover this amount from the third party to refund you.

In Spain, this is not the default situation. In the above example, you would need to contact the driver's motor insurers yourself, and make a claim through them directly. The same would apply if, for example, a burst pipe in the flat upstairs caused water damage to your own apartment.

This said, a few insurance companies of Spain will either pay the claim and then pursue a refund from the third party, or will process a direct claim against the third party on your behalf. These actions are considered an added service, or additional customer care, rather than standard procedure.

If the damage is caused by an unknown and untraceable third party – such as a driver who leaves the scene before you discover the problem – your insurance company in Spain will normally accept your claim and pay you directly.

To find out more about household insurance and other home running expenses in Spain, you might like to look at our article Fixed costs you will pay as a property owner in Spain.