The first thing to bear in mind is that, although the Horizontal Property Law does not expressly specify that apartment buildings must have insurance to cover damage caused to the property, in some of Spain’s autonomous communities it is compulsory to take out a policy of this type, specifically to cover third parties and fire damage.
In terms of fire, damage caused by fire, explosion or implosion, as well as by direct lightning strikes, abnormal electrical currents, floods and even vandalism is covered by the insurer. In the case of civil liability, given that unforeseen events in any building can cause damage to third parties, this insurance covers the payment of indemnities and bonds that the resident’s association has to pay.
In addition to these two mandatory types of cover, it is strongly recommended that each resident’s association chooses the type of insurance that best suits its specific needs. The objective is that the residents have the necessary protection to deal with any situation that may arise in the building and that requires immediate action. Below, we present examples of optional cover that a resident’s association could take out:
- Esthetic damage: repair or replacement expenses necessary to restore the esthetics of the building that has been damaged.
- Building assistance: the insured community can benefit from a series of special services, such as surveillance and protection of the dwelling, urgent renovation and repair services, pest control, building conservation services, and so on.
- Garden reconstruction: protects the plants and trees of the building as a consequence of atmospheric phenomena.
- General pipe blockages: the company can cover the expenses deriving from the unblocking of general or community pipes.
- Cars in the garage: the residents’ vehicles parked in the community garage are protected by this cover in the event of fire, lightning or explosion, as a general rule.
- Legal defense: the payment of legal costs and other types of expenses related to involvement in a claims process will be covered by a resident’s association insurance policy.
- Breakage: breakage of glass, sinks, bathroom fixtures, etc.
- Theft: this type of cover allows residents to benefit from certain services such as receiving substitute locks and keys, replacing stolen personal belongings or cash, renewal of documents, and so on.
- Employee accidents: indemnities and medical care are covered in the event of the death or disability of personnel working in the community.
As you can see, there are a great number of options to ensure the peace of mind of your neighbors and yourself as the person in charge of the community.