One of the first questions that arises when buying a home in Spain is the issue of security and property insurance. The Spanish insurance system includes compulsory and voluntary insurance. The first type of insurance includes car and home insurance when buying in a mortgage, as well as some types of insurance for individuals and legal entities – for example, liability insurance for lawyers and private doctors. Voluntary insurance includes all types of health insurance and life and health insurance against accidents.
The types of insurance in Spain can be divided into three large groups:
- Car insurance
- Real estate insurance
- Health insurance
In Spain, any vehicle must be insured. There are two types of insurance in this category:
- Compulsory third party liability insurance (CTP insurance equivalent). This is an insurance policy under which the insurance company undertakes to indemnify damage caused to the property or health of others. The cost of a car insurance policy in Spain depends on the length of service and age of the driver, the period of operation of the car, make, accident rate, and so on.
- Voluntary insurance (analogue to CASCO). In addition to liability to third parties, it includes car insurance against theft and damage, as well as insurance for the driver and passengers against accidents.
Just like in the case of car insurance, it is divided into two categories:
- Compulsory real estate insurance when buying a home on a mortgage and applying for a mortgage loan using securities. In this case, the bank acts as an intermediary and not a lender, therefore insurance is mandatory.
- The remaining options for real estate insurance under Spanish law are voluntary and include home insurance against various damages, natural disasters, thefts and so on.
- State health insurance applies to all children under the age of 18 years living in Spain, regardless of their legal status, as well as to residents of Spain who make contributions to the social insurance system, that is, they officially work in Spain or are registered with the service employment. In some regions of Spain, state medical assistance is provided to all categories of the population, including irregular migrants.
- Private health insurance in Spain offers the widest selection of programs, doctors and medical facilities. Depending on the type of policy, you can get the most diverse range of services, including special examinations, surgeries and hospitalization.
Insurance in Spain deals with many companies. It’s not easy to understand this huge choice and understand which services are needed and which are optional, without knowledge of Spanish law and insurance nuances, that’s why our company helps you navigate the world of insurance, make an informed decision and save time and money.