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Motoring Matters

Many people move here thinking that life will be all beaches and barbies! Well a lot of it is, but you also need to deal with the practicalities of life. This series of articles is designed to make this easier for you.

Insuring Your Rental Property

There are various factors to be considered when insuring your property in Fuerteventura.
In England, The building cover is in respect of the house and fixtures and fittings such as fitted kitchens. The contents are treated separately and are a higher rate of premium.

In Spain, the building is the shell of the house, anything that can be dismantled is a fixture and fitting. The majority of Spanish Insurers treat fixtures and fittings as contents. UK insurers treat them as part of the building although a different section, meaning a cheaper rate.

Where there is a community (communidad) insurance, this protects the buildings, and common areas, for example hallways and lifts in apartment buildings. You should insure any fixtures and fittings as well as the contents.

By insuring the building you will benefit from Property Owners Liability which should be at least 1,000,000 euros. By insuring the contents, you will also protect yourself and your family becoming legally liable as Occupiers or in a personal capacity.
When a property is rented out, accidental damage to movable items, i.e. vases is generally not covered. However contents cover should include accidental breakage or damage to non-portable televisions and similar equipment, mirrors, glass tops to furniture and ceramic hobs.

Where the building is insured, and any insured event occurs which prevents the property being rented out, the insurance should cover loss of rent.

Loss or damage caused by theft is either excluded or has minimal cover unless involving forcible and violent entry or exit.
Loss or damage caused by theft is normally also excluded whilst the property remains vacant.

The main cause of theft has been by people obtaining keys. This has on occasion been done by people involved in the construction of the property where electricians, painters and plumbers are all given keys. The thieves are willing to wait for some time until the premises are well furnished, and then strike when empty, even two years later, and so it is recommended to change the locks.

Be careful when renting out over the net and payment is made to a keyholder. A recent case involved the complete contents of an apartment being loaded into a van over a couple of days. The property was loaded in front of the entrance to one of the major supermarkets in Corralejo. When renting out your property, it is a false economy not to use a Property Management Company. Wherever possible there should be a separate mortice type lock that the Property Manager keeps, and operates when the property is unoccupied
A unique feature of Spanish Insurance is “Consorcio” which is cover against extraordinary risks, once called Acts of God. The Insured has to bear 10% of the loss.

It is strongly recommended that you take a legal assistance helpline to assist you in knowing your legal rights and obligations in Spain, and assist on contractual matters, and provide a criminal defence and defence of rights. These insurance policies are extremely cheap, but an English speaking adviser on Spanish Law is recommended.

This article was written by Robert Murhphy from Atlantic Insurance Brokers.

Avenida Juan Carlos 1,Nº 27, Corralejo, La Oliva

Telephone: 928537730    Mobile:  646008496

Email: robert@aibsl.net          www.aibsl.net