7 myths about car insurance in Spain for expats
If you buy a property: Is home insurance mandatory?
In Spain, there’s no general law forcing all homeowners to take out home insurance.However, there’s one key exception: If you buy a property with a mortgage, the bank will require at least fire insurance as a condition for the loan. Some banks might try to sell you their own insurance, but you have the legal right to choose your own provider — as long as it meets the minimum requirements.
What does the minimum coverage include?
Typically, this basic insurance includes:
- Fire and smoke damage
- Explosions
- Electrical surges (in some cases)
But it does NOT include common risks like water damage, theft, or liability. So even if it’s not always legally required, having a comprehensive home insurance policy is highly recommended.
If you rent a property: Is home insurance required?
By law, tenants are not required to have home insurance in Spain. That said, landlords should have insurance that covers the structure of the property (known as the “building” or “continent”).
But here’s the catch: As a tenant, you are responsible for your own belongings and any damage you cause to the property or others — for example, if you leave the tap on and flood the apartment below.
What should a renter’s insurance include?
If you’re renting, the right policy should cover:
- Contents (your furniture, clothes, appliances)
- Personal liability (in case you damage the property or a neighbor’s)
- Theft
- Water or fire damage you accidentally cause
It’s usually quite affordable — and it can save you thousands in case of an emergency.
| Coverage Type | Homeowner | Tenant |
| Structure (building) | ✅ Yes (especially with mortgage) | ❌ Not needed |
| Contents (inside belongings) | ❌ Optional (if furnished) | ✅ Highly recommended |
| Liability insurance | ✅ Strongly recommended | ✅ Strongly recommended |
| Required by mortgage lender | ✅ Yes | ❌ No requirement |
Key differences between insurance for owners vs. tenants
What’s the minimum coverage you should have?
Even if you’re not legally required to get insurance, here’s what we strongly suggest at minimum:
For Homeowners:
- Fire and explosion
- Water damage and natural events
- Theft
- Personal liability
- 24/7 home assistance
For Tenants:
- Contents (your stuff)
- Liability insurance
- Water damage
- Theft (if you own valuable items)
What happens if you don’t have insurance?
Here’s the reality: if something goes wrong and you’re uninsured, you’ll have to pay for everything yourself. That might mean:
- Thousands of euros in water damage repairs
- Replacing electronics, clothes, or furniture after a fire or burglary
- Covering legal fees if a neighbor sues you for damages
Insurance doesn’t just protect your home — it protects you.
Is it different for expats?
Yes — in a few key ways. Many expats are unsure how the Spanish insurance system works. Some common issues include:
- Your insurance back home doesn’t cover you here
- Most policies are in Spanish, which makes things confusing
- Some insurers won’t accept foreign clients without a Spanish ID or bank account
That’s why it’s smart to look for insurance providers that specialize in expats, with English-speaking support and tailored coverage.
How to choose the right home insurance as an expat in Spain
Here are 3 quick tips to make your life easier:
- Make sure you can understand the policy. Choose an insurer that communicates clearly — in your language.
- Check what’s included — and what’s not. Many people don’t realize their policy excludes common risks.
- Insure only what you need. If you don’t own high-value items, you may not need full theft protection — but you’ll definitely need liability coverage.
So… is it mandatory or not?
To wrap it up:
- Buying with a mortgage? Yes — basic insurance (at least fire) is mandatory.
- Buying without a mortgage? No, but highly recommended.
- Renting a property? Not mandatory — but very risky to go without.
The bottom line: you may not be legally required to have home insurance in Spain, but being unprotected can cost you much more in the long run. For expats especially, the peace of mind is well worth it.
Talk to experts who understand expats
At The Insurance Centre, we specialize in home insurance for expats in Spain. Whether you’re renting or buying, we offer:
- Clear, simple advice in English
- Policies designed for expat needs
- Support throughout your stay in Spain
Not sure what coverage you need? We’re here to help — with zero pressure to buy. Get in touch with us today and feel confident in your new home in Spain.
