Home insurance in Spain: what a policy must cover
A Spanish home policy is built from two sums insured, the continente covering the structure and fixed installations and the contenido covering everything movable inside, and if either is set too low every claim is reduced in proportion.
gelisted editorial team · Updated 15 August 2026
The short version
- Continente is the rebuild cost, not the market value of the property.
- Contenido should be set from an inventory, not estimated.
- Underinsurance reduces every payout by the same proportion.
- Third party liability is included in most policies and is the cover most used.
Almost every disappointing claim in Spain comes from one of two numbers being wrong on the day the policy was taken out, and both are chosen by the customer.
The two sums insured
The continente is the cost of rebuilding: walls, roof, floors, fitted kitchen and bathrooms, and fixed installations. It is not the purchase price, which includes the land. The contenido is everything that would fall out if the house were turned upside down: furniture, appliances, clothing, electronics and valuables. Both are chosen by the policyholder and both are checked at claim time.
| Element | Basis | Common error |
|---|---|---|
| Continente | rebuild cost per m² | using the purchase price |
| Contenido | replacement cost of contents | guessing low |
| Valuables | declared individually above a limit | not declaring |
| Third party liability | sum insured for damage to others | set too low |
| Water damage | included, check the exclusions | old pipe exclusions |
| Theft | check limits for cash and jewellery | sub limits missed |
| Excess | per claim | not compared between quotes |
| Unoccupancy | declare the pattern | cover lapses |
Underinsurance
If the continente is insured for 120,000 € when the rebuild cost is 200,000 €, the property is insured for 60 per cent of its value and every claim is settled at 60 per cent, including a small one. A 10,000 € water damage claim pays 6,000 €. This proportional rule is standard in Spanish policies and is the mechanism behind most complaints about settlements.
The cover that gets used most
Third party liability, and not by a small margin. A leak that damages the flat below, a falling roof tile, a guest injured on a terrace: these generate claims far more often than fire or theft. The sum insured for liability should be generous, since the marginal premium for raising it is small while the exposure it covers is not.
Water damage is the most frequent claim in Spanish homes, and the exclusions for old or corroded pipework are the clauses worth reading before signing.
Reviewing it
Every 2 or 3 years, and after any renovation. A kitchen replacement, a pool, an extension or new air conditioning all raise the rebuild cost, and a policy set 10 years ago at figures that were right then is underinsured now. Photographing every room and keeping receipts for anything above 500 € turns a contents claim from an argument into an administrative process.
A worked example makes the underinsurance rule concrete. A property with a rebuild cost of 200,000 € insured for 120,000 € is covered at 60 per cent, so a 10,000 € water damage claim settles at 6,000 € and a 3,000 € one at 1,800 €. Correcting the sum insured costs perhaps 40 € to 90 € a year of extra premium.
Frequently asked
+What is continente and contenido?
Continente is the structure and fixed installations, contenido is everything movable inside the property.
+How do I set the continente figure?
From the rebuild cost per square metre, not from the purchase price, which includes the land.
+What happens if I insure for too little?
Every claim is reduced in the same proportion, including small ones. That is the underinsurance rule.
+Which cover is used most often?
Third party liability, for damage such as a leak reaching the flat below or a visitor injured on the property.
+How often should I review the policy?
Every two or three years and after any renovation that raises the rebuild cost.
Sources
- 1Boletín Oficial del Estado, BOE (August 2026)
- 2Instituto Nacional de Estadística, INE (August 2026)