The building insurance: what it really covers and what it does not

Building insurance is compulsory in many Spanish regions and, in practice, indispensable everywhere. But almost nobody reads it until the day something happens — which is the worst moment to discover what it does not cover.

What is usually covered

• Water damage in common areas and, depending on the policy, tracing the leak.
• Fire, explosion, weather events.
• The community public liability: what happens if something belonging to the building injures someone. A falling tile, a slip in a poorly signed common area.
• Broken glass in common areas.

What is almost never covered (and people assume it is)

• The inside of flats. The building policy covers the common parts; the private parts are covered by each owner own policy. One incident usually triggers two policies.
• Damage from lack of maintenance. If the failure comes from something left unattended for years, the insurer can reject it. It is the most frequent exclusion and the most expensive.
• Undeclared installations: pool, lift, car park, sports areas. If they are not listed, they are not covered.

The three things to check today

1. That the sum insured is up to date. A fifteen-year-old policy with fifteen-year-old values can leave you with a partial payout.
2. That all the actual installations are declared.
3. What excess you have. A high excess makes the policy useless for small claims, which are most of them.

When filing a claim

Photos from the first moment, dated, and written notice. And do not carry out any permanent repair before the loss adjuster has seen it, however urgent it feels — beyond what is essential to stop the damage.

And one recommendation

Review the policy once a year, at the ordinary meeting. You do not need to change insurer every year, but you do need to know what you have signed before you need it.