Perfectly insured around the island home

How to insure your property on Mallorca properly!

Property owners in Mallorca should also insure themselves against all kinds of damage.
There are a few things to consider when choosing the right policies.

The insurance market in Spain is large. Anyone who wants to and has the necessary small change can basically insure themselves against any risk. While many insurances are superfluous from an expert's point of view, you should rely on certain insurances both as the owner of a property and as a tenant.

Fully comprehensive home insurance

Unlike in Germany, for example, there is a bundled home insurance policy in Spain. This includes property, household contents, liability and even legal protection insurance „No homeowner should do without it“, says financial advisor Ramrath & Partner in Llucmajor on Mallorca. This insurance is also recommended for homeowners and tenants.
However, it is advisable for tenants to forego the area of building insurance. After all, the owner is responsible for the building. The same applies to owners of apartments and apartments in complexes and apartment buildings. In this case, the homeowner is responsible for the building insurance.

The customer can determine the scope of benefits of the home insurance according to their wishes and needs. „We therefore recommend detailed and competent advice“, explains  Ramrath & Partner. However, the insurance premium does not only depend on the scope of benefits. The amount of the sum insured, the living space, the location, the type of house and existing protective devices against theft and burglary also have an impact on the amount of the premium.

Fire protection in a package

Fire insurance also makes sense in Spain. As a rule, it does not need to be taken out separately. It is automatically part of the building and/or household contents insurance. It covers so-called natural hazards, for example due to fire, explosions and deflagrations as well as water. This shows that household contents insurance is also highly recommended for tenants.

Customers should pay very close attention to the scope of house contents insurance. Depending on their value and the insurance company, valuables and jewelry must be specifically declared in the policy in order to be covered, warns Tamara Taschner. Policyholders should also bear in mind that some insurance companies require special protection above a certain amount of the household contents sum. For example, the customer may be obliged to install an alarm system. And this means additional costs before the insurance is taken out and comes into force.Spanish insurance law

When it comes to insurance companies, German owners of Spanish properties have no choice. You will look in vain for German insurance companies in Spain. Companies with well-known names, such as Allianz Spain, Zurich Seguros or DKV, have nothing to do with German companies. They are completely separate from them and are exclusively subject to Spanish insurance law.

Policies for building owners

Building insurance, also known as construction insurance, covers the costs of unforeseeable damage during the construction of a property. The total construction costs of the building are used to determine the sum insured. In addition to components and building materials, this also includes outdoor facilities and all construction work, including the client's own work. Ancillary construction costs, such as development costs and architects' fees, are not included in the sum insured.

Insurance cover should be in place for the entire construction period, but is limited to two years with many insurers. As contractors and tradesmen are usually also insured under the policy, builders can try to include the companies involved in the insurance costs. The premium for the insurance is usually settled with a one-off payment.
Construction insurance is highly recommended for builders, as very high additional costs can be incurred in the event of a claim. If construction financing has been taken out for the construction of the property, the costs are also usually precisely calculated so that unplanned expenses can even cause the construction project to fail in the worst case scenario.The Seguro Decenal has been a legal requirement for all new builds on Mallorca since May 2000 and must be completed before cementing work can begin. This is a 10-year liability guarantee insurance against structural damage to buildings.