Home insurance for expats in Spain: what foreigners really need to know

Published on 11 February 2026

Home insurance for expats in Spain refers to standard Spanish home insurance policies adapted to the needs of foreign residents, including those who live in Spain all year round, as well as those who own a second home, spend long periods outside the country, or rent out their property.

Moving to Spain, buying a property, or leaving a second home empty for weeks at a time is exciting, but home insurance can work differently in Spain than in many other European countries. In Spain, policies usually distinguish between buildings (continente) and contents (contenido), and cover may vary depending on whether the property is lived in year-round, rented out, or left unoccupied for long periods.

This guide explains how home insurance works in Spain, what cover expats usually need, and the most common mistakes foreign homeowners make.

Is home insurance mandatory in Spain for expats?

No, home insurance is not legally mandatory in Spain. However, when a property is purchased with a mortgage, lenders usually require buildings cover, often including fire cover, as part of the loan conditions. You are generally free to choose the insurer, provided the policy meets the lender’s requirements.

Even when it is not compulsory, home insurance is strongly recommended due to local risks, shared building responsibilities and potential legal liabilities.

What does home insurance for expats in Spain usually cover?

Home insurance policies in Spain typically combine core protection with optional extras, depending on the insurer, the policy chosen and how the property is used.

Home insurance in Spain commonly covers:

Damage to the building structure
Fire, storm and, depending on the policy, flood damage
Water leaks and damage to neighbouring properties
Theft and vandalism
Third-party liability cover (civil liability)
Legal defence or legal assistance (depending on the policy)

In practice, cover is often divided into core protection and optional extensions.

Core cover often includes:

Buildings and/or contents insurance
Third-party liability cover for you and your household
Fire, storm and water damage
Home assistance services
Aesthetic restoration following a claim (subject to limits and conditions)

Optional cover may include:

Accidental damage for buildings and contents
Extended cover for valuables and jewellery
Additional legal protection services
Cover adapted for second homes or holiday rentals
Legal assistance in cases of illegal occupation

Understanding which cover is included as standard and which is optional is essential, particularly for expats who may own a second home, rent out their property, or spend long periods outside Spain.

If your property is rented out, either long-term or short-term, insurance needs can change significantly. You can read more in our guide to Rental insurance for landlords and tenants in Spain.

How home insurance in Spain differs from other European countries

Spanish home insurance does not always work in the same way as in other European countries. Some of the main differences include:

Buildings and contents can be insured separately or both in the same policy
The buildings sum insured should be based on rebuild cost, not market value
Some covers that are standard in other countries may be optional in Spain
Properties in apartment blocks or urbanisations often involve shared responsibility areas

Understanding these differences helps reduce the risk of underinsurance and rejected claims.

Who needs home insurance in Spain?

Home insurance is recommended for anyone who owns or lives in a property in Spain, as it helps protect against damage, liability claims and unexpected costs.

In particular, it is advisable for:

Property owners, whether residents or non-residents
Homeowners with a mortgage
Owners of second homes
Landlords renting out property
Tenants who want contents and liability cover

For expats, home insurance becomes even more important when the property is left unoccupied for long periods, rented out, or used as a second home, as these situations often involve additional risks and specific policy conditions.

Home insurance for expats with a second home in Spain

Second homes may face higher risk because problems such as leaks or break-ins can go unnoticed for longer periods. Many insurers apply specific conditions or limitations once a home is unoccupied beyond a certain time, and the exact threshold varies by insurer and policy.

For this reason, it is important that your insurance accurately reflects how the property is actually used.

Squatters in Spain: does home insurance help?

Home insurance does not prevent illegal occupation. However, some policies offer legal assistance or legal defence cover that may help with legal procedures and related costs. Availability, limits and waiting periods depend on the insurer and the policy chosen.

For expats who do not live permanently in Spain, this type of protection can be particularly valuable.

You can read more about how to protect your property from illegal occupation in Spain in our full guide on squatting and home insurance.

Common home insurance mistakes expats make

Foreign homeowners in Spain often make the following mistakes:

Insuring the market value instead of the rebuild value
Assuming home insurance works the same as in their country of origin
Not declaring long periods of unoccupancy
Not declaring that the property is rented out or used for letting
Underinsuring contents
Overlooking legal protection options

These mistakes can lead to reduced claim payouts, limitations of cover, or even refused claims.

Frequently asked questions about home insurance for expats in Spain

Can expats insure a second home in Spain?

Yes. Expats can insure second homes in Spain, although special conditions and unoccupancy limits may apply depending on the insurer.

Is Spanish home insurance the same as in the UK, France, Germany or other European countries?

No. Spanish home insurance often separates buildings and contents and may treat some types of cover as optional rather than standard, compared with the UK, France, Germany and other European countries.

Does home insurance cover squatters in Spain?

Home insurance does not stop illegal occupation, but some policies include legal defence or legal assistance cover that may help property owners take legal action.

Understanding how home insurance works in Spain makes it easier to choose the right protection, whether you own a main residence, a second home or a rental property.

Does home insurance in Spain cover rented properties?

Yes, but rented properties usually need specific cover. Owners must declare that the property is rented out, as this can affect liability cover and policy conditions.

Do tenants in Spain need home insurance?

Tenants do not need buildings insurance, but contents and third-party liability cover are strongly recommended to protect personal belongings and cover damage to third parties.

For a more detailed explanation of what tenants and landlords should insure, see our guide to Rental Insurance for Landlords and Tenants in Spain.

Should buildings insurance be based on market value or rebuild cost?

Buildings insurance should be based on the rebuild cost of the property, not its market value, to avoid underinsurance.

Final thoughts

Choosing the right home insurance in Spain means understanding local practices, recognising specific risks and ensuring your cover matches how you use your property.

At Generali Expatriates, we help foreign residents find insurance solutions adapted to their situation in Spain, offering guidance in their own language and support designed around expat needs.

Find your nearest broker or agent or request a quote today and get home insurance in Spain that’s adapted to how you really live.