Many Legal Allies clients ask us whether home insurance for rentals is mandatory in Spain. It’s a valid question—when you’re renting, who is responsible if something goes wrong? The landlord or the tenant? And what happens in case of a leak or a burglary?
If you’re a foreign resident or planning to rent in Spain, it’s essential to understand what insurance is advisable, what might be required, and how to protect yourself without overspending.
Is Home Insurance Mandatory for Rentals in Spain?
The short answer: no, it is not legally required, neither for landlords nor tenants.
However, there are important considerations:
- The landlord can include it as a requirement in the rental contract.
- A bank might require it if the property is under a mortgage.
- Even if not mandatory, it can save you from legal and financial trouble.
Who Should Take Out the Insurance: Tenant or Landlord?
- The Landlord
Landlords typically have a basic insurance policy covering:
- The building’s structure.
- Civil liability for damage to third parties.
This insurance does not cover the tenant’s belongings or damages caused by the tenant.
- The Tenant
It is not mandatory but strongly recommended to have contents and liability insurance.
Why?
- If you accidentally cause damage (e.g. a broken appliance, water damage, fire), the insurance can cover the cost.
- If you damage a neighbor’s property (e.g. a leak that reaches another apartment), you’ll be legally protected.
Legal Allies recommends this type of insurance, which starts at around €60 per year. It’s a small cost compared to paying for repairs out of pocket.
What Should a Good Rental Insurance Policy Cover?
For landlords, the ideal policy should include:
- Protection against fire, water damage, and vandalism.
- Legal defense coverage.
- Optional rent default protection.
For tenants, look for:
- Accidental damage to personal property.
- Civil liability.
- Protection against theft or fire.
- Emergency services (locksmith, electrician, etc.).
What Happens If There’s No Insurance and an Accident Occurs?
Without insurance, the responsible party pays for the damages directly.
Example:
- You are a tenant and leave a tap running, flooding your bathroom and the apartment below. You will have to pay for the damage unless you have home insurance for renters.
- You are a landlord and an electrical socket causes damage. If uninsured, you cover the repairs and any third-party claims.
In both scenarios, legal claims and unexpected costs are likely.
Can the Landlord Require the Tenant to Have Insurance?
Yes, if it is clearly stated in the rental agreement. It is legal and becomes a binding condition once the contract is signed.
Legal Allies advises:
- Read the clause carefully.
- Compare insurance policies before accepting the one suggested by the landlord.
- Confirm if you have the right to choose your own insurer.
Can You Deduct Home Insurance on Your Tax Return?
- If you’re a landlord renting out the property, you can deduct the insurance as a rental expense.
- If you’re a tenant, deductions are rare—typically only applicable if you work from home and are self-employed.
Although home insurance for rentals is not required by law in Spain, it is highly recommended for both tenants and landlords. A small investment can prevent major issues, legal disputes, and unexpected expenses.
Need help reviewing your lease, understanding insurance clauses, or finding the right coverage? Legal Allies can review your case, explain your rights, and help you choose the best protection for your rental property.
