Press Release in the Gazette March edition

This month Insurance guru Robert Murphy, addresses some of the questions surrounding property insurance in Fuerteventura.

A property is  probably the most important asset you will ever own and therefore you should try to protect it as best as possible. This not only means good security, but also ensuring that you have arranged suitable  protection by insurance.

Understanding your policy – It is normally difficult enough to understand any legal documentation, but when it is in a different language this only adds to the confusion.  Obtaining your policy in English is vital so that you  can fully understand exactly what you are covered for, and of course the process you need to follow should you need to make a claim.

Do I have to take my banks own insurance? No, in fact be very wary of this as some banks are more interested in protecting their own interest as the beneficiary, rather than your interest.  For example under-insurance would be a loss you would need to bear.

How do I calculate how much insurance I will need? This is slightly different from the UK where location and land value is taken into account. In Fuerteventura this is not always the case and emphasis on the actual property itself is more important. For example, does the property have a swimming pool or are there walls, terraces or balconies that need to be included.  Generally to assess the re-build value here in Fuerteventura, we estimate the costs to be approximately  € 1000 per square metre, to build the shell of the property that is up to 2m in height. So by calculating the square meterage and adding on additional items such as a swimming pool, we can then obtain a re-build figure and advise to the actual amount of insurance required.

Things to look out for -  Unlike in the UK and Ireland, most Spanish companies treat the shell as the building and everything else is considered 'the contents.  This means that fixtures and fittings, aerials etc., are treated as contents by some insurers but by Uk insurers as part of the building.  Also in cases of severe damage there may be additional costs e.g.  demolition. So it is essential not to under insure. Some companies also put limitations on amounts payable for certain types of loss i.e glass or aesthetic damage, and accidental damage is rarely coverable so it is important to check your policy carefully. Properties rented out bring further complications which we will review at a later date.

My Community has Insurance, so presumably my home is covered? The community insurance is principally a liability insurance. It does maintain a cover for damage to the property but is mainly there as a policy to protect owners against claims against them by others who may injure themselves on common areas. Communities should have insurance and It is recommended you confirm this with your administrators.  It is recommended that people take out a contents and fixtures & fittings policy which incorporates liability claims against them from neighbours, i.e if you were to flood a neighbour’s apartment.

Is theft covered ? Normally, although damage caused by theft may not be. Please note that once you have given a person a key to your property, insurance coverage is minimal for theft where entrance is not by force.

What is Consorcio?  This is a central government fund that is set up to cover against natural disasters such as flooding.

How can I make sure I am properly insured? The best advice is take advice. Peace of mind is the nice thing about insurance.

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