Holiday Home Insurance in Spain

Holiday Home Insurance in Spain — Why It Is Different

Owning a holiday home in Spain is a significant investment. Whether it is an apartment on the Costa Blanca, a whitewashed villa on the Costa del Sol, or a finca in the Andalusian hills, that property deserves proper insurance protection. The problem is that most second-home owners either assume their standard Spanish home insurance (seguro de hogar) covers them adequately, or they do not think carefully enough about how their insurer defines "occupancy." Both of these mistakes can be costly.

A holiday home in Spain — known in Spanish as a segunda vivienda or, if let commercially, a vivienda vacacional — has a fundamentally different risk profile from a main residence. A primary residence is occupied for most of the year. Someone is there, or nearby, to notice a dripping pipe, to spot that a shutter has blown loose, to catch a slow water leak before it becomes a ceiling collapse. A holiday home, by contrast, can sit empty for six, seven, or eight months of the year. Nobody is there to notice anything.

Spanish home insurance policies are designed around the assumption of regular occupation. They include what are called vacancy clauses: conditions that limit or void cover if the property is unoccupied for more than a specified consecutive period, typically 60 or 90 days. For a holiday home, this is a fundamental problem. If you visit your Spanish property for two weeks in spring and two weeks in autumn, the property will be unoccupied for well over 90 consecutive days at a stretch. During those unoccupied periods, the standard policy may offer you very little — or nothing at all.

There are two ways to address this. You can seek out a specialist holiday home insurance policy written specifically for second properties with long unoccupied periods. Or you can obtain a standard hogar policy that includes an explicit, unambiguous clause extending cover for long absences. The former is generally easier to find and more clearly worded. In either case, the key is to understand exactly what your policy says — and to have that conversation with a specialist who understands the second-home market before you buy.

This guide covers every aspect of holiday home insurance in Spain for second-home owners — from understanding the vacancy problem and what cover you actually need, through to letting implications, security requirements, community insurance, rural properties, and what a realistic policy should cost.

Who This Guide Applies To

This guide is written primarily for owners of second properties in Spain who are not Spanish residents — people who own a holiday home or investment property in Spain and divide their time between Spain and another country. It is particularly relevant for:

• British second-home owners — the single largest group of non-Spanish holiday home owners in Spain, with significant concentrations on the Costa Blanca, Costa del Sol, Costa Brava, and in the Balearic Islands
• Irish, Dutch, German, Belgian, and other Northern European owners — many of whom have purchased properties along Spain's Mediterranean coast and islands as holiday retreats or retirement investments
• People who visit their Spanish property two to four times a year — typically in the summer, at Easter, and perhaps over Christmas or New Year, leaving the property unoccupied for the remainder
• People who use the property themselves and occasionally allow family or friends to stay — even if no money changes hands, this can have insurance implications
• People who let the property commercially — through platforms such as Airbnb, holiday rental agencies, or directly to paying guests — for part or all of the year
• People in the process of purchasing a holiday home in Spain who want to understand what insurance they will need before they complete

Properties on the Costa Blanca (Alicante province), Costa del Sol (Malaga province), Costa Brava (Girona), the Balearic Islands (Mallorca, Menorca, Ibiza), and the Canary Islands (Tenerife, Lanzarote, Gran Canaria, Fuerteventura) are all well within the scope of this guide. Inland Spanish properties — Andalusia, Murcia, Valencia, Aragon, Castile — are also covered, with specific notes on rural finca insurance where the risk profile differs.

The Vacancy Problem — What Happens with Standard Insurance

The vacancy clause is the single most important concept for any holiday home owner in Spain to understand. It is also one of the most common causes of insurance disputes — and rejected claims — that we see among expat second-home owners.

A standard Spanish hogar policy is written on the assumption that the property is someone's primary home, occupied for the great majority of the year. The policy pricing, the risk assumptions, and the claim conditions all reflect this. An unoccupied property is, statistically, a higher-risk property: pipes are more likely to go unnoticed before they cause serious damage; burglaries are more likely to go unreported quickly; fires may burn longer before discovery. Standard policies manage this elevated risk by including vacancy clauses.

What Vacancy Clauses Typically Say

Vacancy clauses vary between insurers and policies, but a typical formulation (translated from Spanish) might read: "Cover under this policy is suspended or limited for claims arising during periods when the property has been unoccupied for more than 60 [or 90] consecutive days, unless the insurer has been notified and agreed to continue cover." Some policies void specific sections — particularly theft, accidental damage, and sometimes escape of water — rather than the entire policy. Others void the entire policy for the unoccupied period.

The practical consequence for a holiday home that sits empty from September to May is stark. If a pipe bursts in February, if thieves break in during January, or if a fire starts in the property in March, the insurer can legitimately reject the claim by pointing to the vacancy clause. You have paid your premium, you believed you were covered, but you are not.

This is not a theoretical risk. It is a real and common problem. We regularly speak to second-home owners who have discovered their policy contained a vacancy clause only after a claim has been rejected. By that point, it is too late.

How Long Is Your Property Unoccupied?

Think carefully and honestly about how long your property is unoccupied in a typical year. If you visit for two weeks at Easter, two weeks in July or August, and a week at Christmas, your property may be unoccupied for over 300 days per year — and for many months at a stretch. Even if you visit more frequently, the consecutive unoccupied periods may well exceed 90 days between visits.

Some owners try to manage this by arranging for a neighbour or local contact to enter the property every few weeks, which may technically interrupt the consecutive unoccupancy period. Whether this satisfies a vacancy clause depends entirely on what the policy actually says — and a brief neighbour visit may not constitute "occupancy" in the insurer's view. Do not rely on informal arrangements without confirming this with your insurer in writing.

What Holiday Home Insurance Should Cover

A properly constructed holiday home insurance policy for a Spanish second property should include a comprehensive range of cover, specifically adapted to the risks that a long-unoccupied property faces. Below we set out what you should expect from a good policy and why each element matters.

Buildings Cover (Continente)

Buildings cover — continente in Spanish — covers the physical structure of the property: the walls, roof, foundations, floors, fixed fittings (such as kitchen units, bathroom suites, built-in wardrobes), and external features such as gates, walls, and permanent outbuildings. The insured value for buildings should reflect the rebuild cost — what it would cost to demolish the existing structure and rebuild it from scratch — not the market value or the purchase price. In Spain, as elsewhere, these figures can differ significantly, particularly for older properties or those in areas where land values are high. Under-insuring the rebuild value is a common mistake; it results in a settlement that falls short of actual repair or rebuild costs.

Contents Cover (Contenido)

Contents cover — contenido — covers the moveable property inside the building: furniture, white goods, televisions, kitchen equipment, bedding, clothing and personal items left at the property. Many second-home owners significantly underestimate this figure. A fully furnished two-bedroom apartment in Spain, including white goods and all furnishings, may well contain €20,000–40,000 worth of contents, and a larger villa considerably more. Contents cover for a holiday home should include cover for periods of unoccupancy — because the most common contents claims on holiday homes tend to arise precisely when the property is empty.

Unoccupied Property Cover

This is the critical differentiator between a standard hogar and a proper holiday home policy. The policy must explicitly state — in the policy schedule or the general conditions — that it covers the property during periods of extended unoccupancy. A good holiday home policy will cover unoccupied periods of six months or more without voiding cover, subject to reasonable security conditions being met.

Water Damage and Escape of Water

Water damage is consistently one of the most common and most costly claims on Spanish properties, and for holiday homes in particular. In Spain's climate, pipes can be subject to extremes: they may dry out and crack during hot dry summers, or freeze and burst during cold winters in inland or elevated areas. A burst pipe in an unoccupied property may go unnoticed for days or weeks, causing catastrophic damage to walls, ceilings, floors, and contents before it is discovered.

Your holiday home policy should include escape of water cover that specifically applies during periods of unoccupancy. Some policies require you to turn off the water supply at the mains when leaving the property for extended periods — failure to do so may affect a claim. Read the conditions and follow them.

Theft and Burglary

Properties that are known or suspected to be holiday homes can be targeted by thieves. An empty property is an easier target than an occupied one. Holiday home insurance should provide cover for theft and burglary during periods of absence, subject to the security conditions discussed later in this guide. Note that many policies distinguish between theft with evidence of forced entry (burglary) and theft without such evidence — having good locks and an alarm reduces both the risk and potential claim disputes.

Storm Damage

Mediterranean Spain is not immune to serious weather. Autumn in particular can bring intense storms — DANA events (Depresión Aislada en Niveles Altos) can produce extreme rainfall, high winds, and flash flooding in coastal areas. The devastating Valencia floods of late 2024 were a stark reminder of the destructive power of these weather events. Storm cover should include damage to the roof, external walls, shutters, roof tiles, and outdoor structures including pool equipment and garden features.

Fire, Glass, Civil Liability, and Legal Protection

Fire cover is essential — particularly for rural properties near woodland where wildfire risk can be significant. Glass cover (broken windows, glazed doors, ceramic hobs) should be confirmed. Civil liability / responsabilidad civil covers you for third-party claims arising from your property — a tile falling from your roof, a visitor slipping on a wet terrace, water escaping from your apartment and flooding the unit below. This is essential and must be in your individual policy even if community insurance exists. Legal protection provides access to legal advice and covers legal costs in property disputes, which can be particularly valuable for owners based abroad. Key replacement and temporary accommodation costs are also practical benefits worth confirming.

Letting Your Holiday Home — The Insurance Implications

Many holiday home owners in Spain let their property — to friends, to family, or commercially through rental agencies and platforms such as Airbnb or Vrbo. When done correctly, this is a sensible way to generate income from an asset that would otherwise be sitting empty. However, letting has significant insurance implications that many owners overlook.

Occasional Letting to Friends and Family

If you allow friends or family to stay at your property — even at no charge — some standard hogar policies will accept this as personal use by guests. However, many will not. Some policies explicitly require that all occupancy is by the policyholder or members of their immediate household. If friends or family staying at your property cause damage, your insurer may argue that cover does not apply because the damage was caused by parties not covered under the policy. Before you allow anyone other than yourself and your immediate family to use the property, check with your insurer that this is permitted and get the confirmation in writing.

Commercial Lettings — Short-Term Holiday Rentals

If you let your property commercially — to paying guests, through an agency, or through platforms such as Airbnb, Vrbo, or Booking.com — you are operating a business from the property. A standard hogar policy, and most standard holiday home policies, will not cover this activity. Commercial letting introduces a completely different risk profile: higher footfall, guests who are not personally known to you, and the potential for accidental damage, deliberate damage, or injury to guests.

For commercial lettings, you need one of the following:

• A specialist holiday let policy designed for short-term rentals — which includes landlord-type cover alongside the vacation rental elements
• A landlord insurance policy specifically written to accommodate short-term holiday lettings rather than long-term tenancies

Key additional cover elements needed for commercial lettings include:

• Landlord liability — covering you for claims from guests injured or suffering property damage at the property during their stay
• Accidental damage by guests — cover for damage caused accidentally by paying guests
• Loss of rental income — covering loss of rental income if the property becomes uninhabitable following an insured event
• Malicious damage by tenants — some policies include this; check carefully

Tourist Licence Requirements in Spain

Holiday rental activity in Spain is regulated at the regional (autonomous community) level, and most regions now require that properties used for commercial short-term letting hold a licencia turística (tourist licence) and be registered with the regional tourism authority. Requirements vary significantly by region and municipality. This is a regulatory and legal matter rather than a direct insurance issue, but it is relevant context: operating without a required tourist licence can expose you to significant fines and administrative complications.

Never Misrepresent the Property's Use

You must not describe a property to your insurer as a primary residence or a simple second home when it is in fact being let commercially. This is misrepresentation — and misrepresentation on an insurance application is grounds for the insurer to void the entire policy, refuse all claims, and potentially report the matter. The short-term saving of a lower premium is not worth the risk of having no cover at all when you need it.

Landlord Insurance vs Holiday Home Insurance vs Standard Hogar

The table below compares the three main types of property insurance relevant to second-home owners in Spain across key features. Use this as a starting framework — specific policies vary considerably, and you should always read the actual policy wording.

Common Risks for Holiday Homes in Spain

Understanding the specific risks your Spanish holiday home faces helps you ensure your policy covers them adequately — and helps you take practical steps to reduce risk during periods of absence.

Water Damage from Burst Pipes and Plumbing Failures

This is the most common and, over time, most financially damaging risk for unoccupied Spanish properties. In coastal areas, pipework — particularly older pipework — can deteriorate over time and fail unexpectedly. When the property is empty, even a slow leak from a shower connection or washing machine hose can cause tens of thousands of euros in damage before it is discovered. In inland Spain — Alicante province, Granada, rural Andalusia, the meseta — winter temperatures can fall below freezing. Pipes that are not properly lagged or drained before winter can freeze and split. In all locations, summer heat can cause plastic plumbing joints and fittings to expand, crack, or weaken, particularly in poorly ventilated properties.

Practical steps to reduce water damage risk: turn off the mains water supply when leaving for extended periods; consider an automatic leak detection and shut-off device; have older plumbing inspected; ensure the policy covers escape of water during unoccupied periods.

Theft and Burglary

Holiday homes — particularly on coastal urbanisations and in areas known for seasonal occupancy — can be targeted by thieves. An empty property with shutters down is an obvious signal that nobody is home. Entry-level break-ins typically target easily fenced items: televisions, small appliances, jewellery, and tools. More sophisticated burglaries target built-in kitchen appliances and even bathroom fittings. Insurance cover for theft in an unoccupied property is an area where the condition of the security arrangements matters significantly. Read the security conditions in your policy carefully, and meet them.

Fire

Fire risk varies considerably by location. For urban apartments, the main risks are electrical faults and fire spreading from a neighbouring unit. For urbanisation villas, fire spreading from adjacent properties or from garden vegetation in hot, dry conditions is relevant. For rural fincas and properties near woodland, wildfire (incendio forestal) is a genuine and significant risk — Spain has experienced devastating wildfires in recent decades. Ensure your policy covers fire without exclusions relating to the property being unoccupied at the time.

Storm Damage

Mediterranean Spain, particularly the eastern coastal regions, can experience severe storms. DANA weather events — typically occurring in late autumn — can bring extreme rainfall, high winds, and flash flooding. The areas most affected have historically included the Valencia region, Murcia, the Costa Blanca, and parts of Catalonia, though no coastal region is immune. Storm damage to holiday homes can include: roof tile displacement, damage to shutters and glazing, flooding of ground-floor properties and garages, pool damage, damage to external walls and gates, and damage to outdoor furniture and awnings.

Escape of Water from Pools

Swimming pools introduce specific risks. A pool can lose significant amounts of water through structural cracks, equipment failure, or plumbing issues. Pool water escaping into the ground can cause damage to neighbouring properties or underground infrastructure. Your policy should cover pool-related incidents, including liability for any damage your pool causes to others.

Damage from Neighbouring Properties and Vandalism

For apartment owners, damage arising from a neighbouring property is a real risk: water ingress from the flat above, fire spreading from an adjacent unit, or structural damage affecting shared walls. Your policy should cover damage to your property caused by incidents in neighbouring units, and the legal protection element should assist if disputes arise. Vandalism risk is typically lower for properties in gated urbanisations but higher for isolated rural properties or those in areas with seasonal population swings.

Security Requirements for Holiday Home Insurance

One of the most important practical aspects of holiday home insurance in Spain is the security requirements set by your insurer. These are conditions — typically set out in the policy's general conditions — that your property must meet in order for cover to be valid, particularly for theft claims. They are contractual obligations, not optional suggestions. Failure to meet them can give the insurer legitimate grounds to reduce or refuse a claim.

Typical Security Requirements

Requirements vary by insurer and policy, but the following are commonly required for holiday home and extended-vacancy cover:

• Certified front door lock (cerradura homologada) — Spanish insurers typically require a door lock that meets a minimum security standard, usually a multi-point locking system (cierre multipunto) or a lock certified to a recognised security standard. Standard single-point locks on older properties may not satisfy this requirement.
• Window and terrace door security — locks on all windows and glass terrace doors are typically required. Persianas (roller shutters) in the down position when the property is empty provide both a security barrier and a visual deterrent.
• Alarm system — some policies require a monitored alarm system (connected to an alarm receiving centre / central de alarmas) for extended unoccupancy cover. Others recommend it or offer a premium reduction. A monitored alarm — where the alarm receiving centre contacts the police or a keyholder if triggered — is significantly more effective than a simple audible alarm that may ring unnoticed in an empty area.
• Safe for valuables — if you declare high-value items (jewellery, watches, electronics) at the property, some policies require storage in a fixed wall or floor safe.

Premium Reductions for Security Measures

Many insurers offer meaningful premium reductions for properties with monitored alarm systems and good security. The investment in a quality alarm — typically €500–1,500 for installation plus a monthly monitoring fee of €20–40 — can often be partially offset by the premium saving, in addition to the practical deterrent effect.

Key Holding Services

Some holiday home owners in Spain use a local key holding or property management service — a company or individual who holds a spare key, inspects the property periodically, and can respond to alarm activations. Beyond the practical benefits, a documented key holding arrangement may be relevant to satisfying the insurer's conditions regarding occupancy checks, and can provide useful evidence in a claim context. If you use such a service, mention it to your adviser when arranging cover.

How Much Does Holiday Home Insurance Cost in Spain?

Holiday home insurance in Spain costs more than standard hogar insurance because it covers a higher-risk situation: extended periods of unoccupancy, properties in tourist areas with elevated theft risk, and the specific weather risks of the Mediterranean coast. The precise cost depends on a range of factors.

Factors Affecting the Premium

• Location — a ground-floor apartment in an urbanisation on the Costa Blanca presents different risks from a detached villa in a hillside urbanisation, which in turn differs from a rural finca in the Alpujarra mountains
• Property type — apartment, terraced house (adosado), semi-detached, detached villa, or rural property (finca)
• Property size and rebuild value — larger properties with higher rebuild values carry higher buildings premiums
• Contents value — the total declared value of furniture, appliances, and personal items at the property
• Security measures — monitored alarm, quality locks, shutters, safe; better security typically means a lower premium
• Proximity to the sea — coastal properties face salt air corrosion and storm exposure; some insurers load premiums for properties within a certain distance of the coast
• Whether the property is let — any commercial letting typically requires a different policy type
• Length of unoccupied period — the longer the property is unoccupied, the higher the risk and the premium
• Claims history — previous claims on the property or by the policyholder affect renewal pricing
• Pool — a swimming pool adds to the insurable value and the liability risk

Rough Cost Guide (2026)

• 2-bedroom apartment on the Costa Blanca or Costa del Sol, basic holiday home cover including unoccupied period: from approximately €200–400 per year
• 3-bedroom terraced or semi-detached villa with small garden, holiday home cover: approximately €300–550 per year
• 4-bedroom detached villa with pool, Costa del Sol or Balearics, holiday home cover: approximately €450–900 per year depending on insured values and specific risk factors
• Rural finca — pricing is more variable and some standard holiday home policies do not cover rural fincas; expect to pay more, and allow for the possibility of a more specialist market

These are indicative ranges only. The only way to get an accurate premium is to provide full details to a specialist and receive a properly underwritten quotation.

These figures are illustrative and based on 2026 market pricing. Your actual premium will depend on the specific insurer, the exact rebuild and contents values, and your individual risk profile. Speak to our team for a tailored quotation.

Community Insurance and Holiday Homes

If your Spanish holiday home is an apartment, a flat within a building, or a property on a gated urbanisation with shared facilities, there will almost certainly be a community insurance policy (seguro de la comunidad) in place, paid for through your community fees (cuotas de comunidad). Understanding exactly what this policy covers — and what it does not — is essential for any second-home owner.

What Community Insurance Covers

Community insurance covers the communal areas and shared elements of the building or urbanisation, and typically includes: the building structure and fabric (external walls, roof, foundations, communal stairwells and corridors); communal installations (lifts, communal plumbing and drainage, communal electrical installations); communal spaces (entrance halls, garden areas, communal pool, car parking areas); and community liability for incidents in communal areas. In some building types, community insurance also covers the continente (shell) of individual apartments as originally constructed — but this varies significantly between communities.

What Community Insurance Does NOT Cover

Community insurance does not cover:

• Your individual apartment's contents — furniture, appliances, personal items
• Fixtures and fittings installed or upgraded by you beyond the original specification
• Your personal civil liability for incidents within or arising from your individual unit
• Damage to your apartment from incidents originating inside your unit

This means that as the owner of a holiday home apartment, you still need your own individual insurance policy — at minimum covering your contenido and your personal civil liability. If the community policy does not cover the continente of your apartment (and many do not, or cover only the original construction without your improvements), you also need buildings cover for your own unit.

Pool Insurance and Checking the Community Policy

Communal pools on urbanisations are typically covered under the community insurance policy for property damage and community liability. However, this does not cover your personal liability as an individual owner for incidents involving guests you have invited to use the pool. Your personal civil liability cover extends to incidents for which you are personally responsible.

Before arranging your individual holiday home policy, obtain a copy of the community insurance policy and understand exactly what it covers. Ask the community administrator (administrador de fincas) for a summary if you cannot access the documents directly. This prevents both gaps in cover and costly duplication.

Fincas and Rural Properties

Rural properties — farmhouses (cortijos, masías, casas de campo, fincas) and other non-urban properties set in open countryside — present a distinctive set of insurance challenges. The insurance market for these properties is more specialist than for coastal apartments, and not all insurers will accept them.

Wildfire Risk

This is the primary additional risk for rural properties. Wildfires are a serious and recurring problem across much of the country, with the risk particularly concentrated in summer. Properties within or adjacent to forested areas, scrubland (monte bajo), or agricultural zones with dry vegetation are materially more exposed than those in urban settings. When insuring a rural property, be accurate and specific about its proximity to woodland and the nature of the surrounding vegetation. Some insurers will not cover rural properties in designated high-risk wildfire zones; others will provide cover with additional conditions such as requiring a maintained firebreak around the property. Never misrepresent proximity to woodland — this is a material fact.

Non-Standard Water Supply, Outbuildings, and Access

Many rural properties do not have mains water connections and rely on a private well (pozo), a water deposit (depósito de agua), or a shared water supply (acequia). Declare non-standard water systems to your insurer — failure to do so may give them grounds to dispute water damage claims. All outbuildings — stables, storage buildings, pool houses, external kitchens, workshops — should be declared and specifically included in the policy. Do not assume a policy on the "main house" automatically covers every structure on the land. Some rural properties are accessed by unmade or privately maintained tracks, which can affect emergency service access — worth mentioning when arranging cover.

Distance from Fire Services

Some insurers factor in the distance from the nearest fire station when calculating premiums for rural properties. A property 45 minutes from the nearest fire brigade will suffer greater fire damage than one 10 minutes away. Be prepared for some insurers to decline rural properties beyond a certain distance, and use a specialist with access to the appropriate markets.

Properties on Urbanisations

Coastal urbanisations — gated developments with shared facilities, managed communal areas, and community governance — are among the most popular locations for British and Northern European holiday home purchases in Spain. Areas such as the La Marina urbanisation near Guardamar, Los Montesinos in Murcia, Camposol, and the many urbanisaciones along the Costa del Sol and Costa Brava all follow a broadly similar model.

Urbanisations with communal facilities are required under Spanish horizontal property law (Ley de Propiedad Horizontal) to maintain community insurance covering the building structure and communal liability. As an owner, your community fees contribute to this policy. You cannot opt out of the community policy, but you should not assume your own individual policy is redundant — community insurance covers communal areas; your individual policy covers your unit, contents, and personal liability.

Some urbanisation statutes (estatutos de la comunidad) specify minimum insurance requirements for individual owners — for example, a minimum level of civil liability cover — as a condition of membership of the community. Check the community statutes at purchase or at renewal, and ensure your policy meets any requirements. Many urbanisations also have security features — gated access, private security guards, CCTV — that can be factors in your insurer's assessment of the theft risk. Mention these features to your adviser when arranging cover.

Getting the Right Policy

The single most important step in getting adequate holiday home insurance in Spain is telling your insurer — or your adviser — exactly how the property is used. The more precise and complete the information you provide, the more accurately the policy can be written for your actual situation, and the less risk there is of cover being disputed when you make a claim.

What to Tell Your Insurer or specialist

• How you use the property — holiday home for personal use, occasional letting to friends and family, commercial short-term let, or primarily commercially let
• Typical occupancy pattern — how many times per year you visit, duration of visits, and typical lengths of unoccupied periods
• Security arrangements — locks, alarm (and whether monitored), shutters or window protection
• Whether anyone checks the property during absences — property manager, neighbour, or key holder who visits periodically
• Location — coastal, rural, or urban; proximity to woodland; whether on a managed urbanisation
• Property type — apartment, villa, finca; ground floor or upper floor; pool or no pool
• Outbuildings and external structures — all buildings, annexes, and significant external structures
• Unusual features — non-standard water supply, solar panels, air conditioning units, generator, external irrigation systems
• Rebuild and contents values — as accurately as possible; consider a professional rebuild valuation for older or non-standard properties

Work With a specialist

The Spanish insurance market for holiday homes and second properties is not well served by online comparison platforms. The risk profile is complex, the vacancy issue is material, and the differences between policies from different insurers are significant. A 247 Expat Insurance — one with direct access to the Spanish market and experience of second-home owners' specific needs — will be able to find policies that general comparison tools will not surface.

247 Expat Insurance specialises in insurance for British and international property owners in Spain. We advise in English, we understand the second-home market across the Costa Blanca, Costa del Sol, Costa Brava, Balearics, Canary Islands, and inland Spain, and we can find the right policy for your property and your situation.

Annual Review

Property values, rebuild costs, and contents values change over time. At renewal each year, check that the insured values still reflect reality. In a period of construction cost inflation — which Spain has experienced in recent years — the rebuild cost of a property can increase significantly without any changes to the physical structure. Under-insurance at claim time means a substantially lower settlement than the actual cost of repair or replacement.

Also review your policy if circumstances change: renovation (increasing rebuild and contents value), starting commercial letting, installing a pool, or significantly changing security arrangements. Notify your insurer or specialist of any material change in use before you accept your first commercial booking.

Common Mistakes Holiday Home Owners Make

Over the years of helping second-home owners across Spain, we have seen the same mistakes come up repeatedly. Here they are — with the action needed to avoid each one.

1. Using a Standard Hogar Policy on a Property Visited Three Times a Year

The most common and most financially dangerous mistake. If your standard policy has a 60 or 90-day vacancy clause, and your property is unoccupied for four to seven months at a stretch, you are significantly uninsured. Switch to a specialist holiday home policy that explicitly covers extended unoccupied periods.

2. Not Reading the Vacancy Clause

Many owners do not read the general conditions of their policy in full — particularly if the policy documents are in Spanish. The vacancy clause is typically buried in the middle of a lengthy document. Read it, or ask your adviser to explain it to you in plain English before you buy.

3. Not Telling the Insurer You Let It to Friends

Even if no money changes hands, allowing people outside your immediate household to stay at the property changes the risk profile. Most policies require disclosure of who occupies the property. Failing to mention regular informal letting can provide grounds for the insurer to reduce a claim for damage that occurred during a friends' stay.

4. Under-Insuring the Rebuild Cost

This applies to holiday homes just as it does to main residences. The insured rebuild value should reflect the actual cost of demolishing and rebuilding the structure, not the purchase price or market value. Professional rebuild valuations are available and are often worth the cost for larger or older properties.

5. Not Installing Adequate Security

A property without adequate locks, shutters, and — for extended unoccupied properties — an alarm system is both more vulnerable to theft and potentially in breach of the policy's security conditions. Invest in proper security before you insure, not after a claim is rejected because the lock was inadequate.

6. Not Checking What the Community Policy Covers

Assuming that the community policy covers everything is a common mistake in apartment and urbanisation properties. Request a copy of the community insurance certificate and check what is and is not covered. This prevents discovering a coverage gap at claim time.

7. Letting Commercially Without the Correct Policy

As detailed earlier, commercial letting on a standard hogar or holiday home policy is a serious exposure. If you are taking paying guests, get the correct policy before you accept a booking.

8. Not Updating the Insurer When Circumstances Change

If you renovate the property, start letting commercially, install a pool, or significantly change the security arrangements, notify your insurer. Changes in material circumstances that are not notified can affect cover for subsequent claims.