Condominium owners' associations
Condominium owners’ associations, be they properties, semi-detached houses or chalets, have common areas and contents (furniture, works of art, sports facilities, swimming pools, etc.). These are exposed to risks that can lead to their deterioration or destruction and give rise to claims by third parties.
It is therefore very important to ensure comprehensive protection with a tailor-made insurance policy.
Insurance for condominium owners’ associations in Spain includes the usual guarantees for fire, lightning and explosion, atmospheric phenomena, floods, malicious acts, exposure to smoke or soot, impact from animals and vehicles, sound waves, electrical damage and accidental spillage or leakage of liquids, legal defence and specialist assistance.
In addition, coverages can cover only common elements or additionally private elements.
It is important to analyse the type of community (number of neighbours, age of the building or buildings) to determine the required coverage. Including coverage of private elements in the community policy is not always advisable.
In recent years, community insurance has evolved greatly, both in terms of coverage and premiums.
Now is a good time to review your policy. You can easily improve your cover and lower your premium.
What cover is available under an insurance policy for owners' associations?
- Basic guarantees
- Fire, explosion and lightning
- Impact damage (objects, vehicles)
- Blockages and breaks in municipal water systems
- Floods
- Malicious acts or vandalism
- Breakage of glass
- Electrical damage
- Natural risks (wind, rain, hail and snow)
- Aesthetic restoration and reconstruction of gardens
- Costs for fire brigade, debris removal, sweeping and mud removal
- Theft and damage due to attempted theft (fixed parts of the building, decorative elements, fixtures, goods located in corridors and staircases)
- Civil liability (derived from ownership of the property and garages, car parks, swimming pools, green areas and common services)
- Damage to underground gas and electricity lines
- Personal accidents of security service personnel (porters, cleaners, etc.)
- Legal defence, deposits and court costs
- Emergency services
- Optional guarantees
- Water damage in the private sector
- Locating and unblocking costs (with and without damage)
- Pest control and prevention
- Glass breakage in the private sector
- Aesthetic damage
- Water damage repair without damage
- Civil liability for real estate in the private sphere
- Repair, remodelling or decoration work
- Non-payment of community contributions
- Accidents at work
- Legal assistance for co-owners and board of directors
- Defence in legal cases
- Machine breakdown (heating system)
- Parking vehicles
Is it compulsory in Spain to take out an owners’ association insurance policy?
Nationally, there is no rule or obligation for a condominium owners’ association to take out a policy.
However, there are regional regulations that may require the purchase of this insurance. For example, condominium owners’ associations in the municipalities of Madrid and Valencia are required to take out community insurance that covers the risk of fire and damage to third parties.
Bohemia Mallorca successfully cooperates with all renowned insurance companies in Spain.
What does community insurance cover?
Just as motorbike insurance and truck insurance are not the same thing, the first thing we need to understand about insurance of this type is the difference between a private building with one owner and a condominium owners’ association for a building where several neighbours live.
For this reason, it is very important to know what coverage this type of insurance includes.
Within this type of coverage, insurers usually include the following coverages. There may be differences from one insurer to another.
- Civil liability
Coverage in case of receiving compensation claims for damages caused to third parties. For example, if an element of the façade falls down or comes loose and injures someone, this cover will be responsible for compensation. Also in the event of a break in a communal pipe and damage to property by the building’s occupants. - Legal advice
Usually from the insurer’s solicitors or reimbursement of costs in protocols from community solicitors. - Fire
This cover insures the neighbouring community against damage caused by fire, explosions, direct exposure to lightning or abnormal electrical currents. - Vandalism and theft
Coverage for vandalism or rioting that results in property damage to the building. - Water damage
Guarantee for floods, leaks and other damage that may occur within the community. - Breakage of windows and crystals of community elements.
Cover for accidental breakage of community windows and crystals. - Intervention of fire and rescue services
Reimbursement of costs caused by the intervention of fire and rescue services for the application of measures to limit or eliminate the consequences of the incident. Demolition and debris removal
The average insurance price for a condominium owners’ association is not easy to calculate. It can range from 600 to 2,500 euros, depending on the building, number of neighbours, guarantees, etc.
The possibility of contracting a franchise is another factor to consider when determining the price of this insurance. The aim of the insurance franchise is to reduce the annual premium of the policy for the condominium owners’ association. In return, the condominium owners’ association covers an agreed amount of damages itself and the rest is covered by the insurance company.
