Insider's Guide to Home Insurance
when Buying a Luxury Property in Spain

For many people, owning a luxury home in Spain is a dream come true. However, not only is it a dream come true, but while enjoying the dream, this special investment often appreciates considerably in value. In fact, “Come Rain or Come Shine”, Real Estate Still Reigns Supreme as an Asset Class. This has never been more relevant than in the Balearic Islands. Regardless of the source of information, property prices in the Balearics remain as strong as ever. One of the most important things you can do as a homeowner or investor is to protect your investment through the correct comprehensive Homeowner Insurance Policy.

In this blog post, we will discuss insuring luxury homes in Spain with a special focus on non-residents with luxury homes in Spain, and how and where to obtain the ideal protection.

Home insurance focused on non-residents with luxury homes in Spain

As a non-resident with a luxury home in Spain, it is important to understand that your insurance needs may differ from those of a resident. For example, if you do not live in your Spanish home year-round, you may need extended coverage for things like vandalism, theft, and damage caused by natural disasters, knowing that the property may not be fully occupied throughout the year. Additionally, you may need coverage for vacation rental liability, domestic staff, or having friends and extended family visiting regularly when you are absent.

Adequate cover for valuable objects whether works of art or personal items is something also to be addressed.

And having the correct Third-Party Liability and Legal Defense Policy in place can assure you that in the case of complicated legal claims, you have the full backing of a qualified defense team and the amount of financial coverage to address major liability claims.

How and where to find the Ideal Home Insurance and Trusted Professional Advice

There are three main sources for finding insurance cover to protect your property:

  • The Insurance Agent
  • The Bank
  • Professional Insurance Broker

Insurance Agents represent and work for only one insurance company. Though their intentions might be good, they are more limited to the options they can give you, the client.

Banks and other lending institutions encourage and, in many cases, oblige bank managers to sell financial products. This may include a bank insurance policy which is typically a standardized and comparatively expensive product. Furthermore, in the case of the bank also writing the mortgage, bank managers often imply their insurance is a prerequisite for the mortgage. This is not always the case, although sometimes the insurance is linked to a discount in the interest rate of the mortgage. The choice of insurance available and the insurance expertise at the bank is limited. A further disadvantage is that in the case of a claim, banks are not geared toward claims management.

What is clear, for the owner of a luxury high-end property, the Professional Insurance Broker does seem to be the most logical choice. The Broker is licensed, qualified and independent. He will be able to best asses the client’s risk and offer a clear choice of the ideal insurance products to best fit the client’s individual needs. Furthermore, an experienced broker has agreements with a range of AAA insurance companies which allows them to not only offer the ideal covers, but also at the most competitive premiums. The fact is the broker not only gets you the right product but most often at a better premium. Lastly, in the case of claims, they represent you, the client, therefore offering an all-round excellent service.

Mortgage Lionsgate Capital

How to change your home insurance from the bank to a professional insurance broker

If you have already taken out a home insurance policy with your bank or an agent, simply contact your independent broker. The change is very straightforward, and the insurance brokerage firm can arrange all the paperwork and manage the process at no cost to you.

The insurance broker will first offer you the opportunity to professionally review all the policies you have without any cost or obligation. Afterward, you will be given detailed advice and provide you with a quote.

If this quote meets your approval, we shall prepare the necessary cancelation letters making certain any current insurance period obligations are met. All the new policies will be issued in your name, or your designated party, supply you with a detailed schedule and again review with you that the policies are exactly what you require.

How can an Insurance Broker assist Lionsgate Capital's clients

There are two insurance issues to consider here, Mortgage connected Life Insurance and Homeowners’ Property Insurance. In both cases, a professional insurance broker can assist in obtaining the ideal covers for these insurances at excellent terms.

General Home Insurance has already been discussed above. However, it is important that the insurance is well coordinated with your mortgage broker, Lionsgate Capital, to one, make certain in the case of a major claim, even though the banks’ interest is exactly covered, and two and more importantly, that your interests are also protected properly. This is done through a correctly written assignment clause in your house insurance. The bank is entitled only to its exact percentage of the outstanding mortgage value. An insurance broker will make sure this is clearly drafted.

The other important insurance to consider is Owners Life Insurance or term or renewable life insurance policy to cover the person ultimately responsible for paying the mortgage. The beneficiaries in the case of death or severe disability can be in the first order, the bank or lending institution in so far as they still carry the mortgage. Any amounts more than that will be payable to the deceased’s assigned heirs. The insurance professional will make sure these interests are properly assigned and respected. Having this insurance will frequently result in further savings on mortgage rates.

Mortgage Lionsgate Capital

Why Choose Seippel & Seippel as Your Trusted Insurance Broker?

Seippel & Seippel is an independent international insurance broker with over 34 years of experience in the Spanish market. They specialize in helping resident and non-resident homeowners in Spain and have a deep understanding of the specific insurance needs of high-net-worth clients in Mallorca and abroad. Their experience and global network of insurance providers in the industry allows them to arrange high insurance sums for both buildings and contents, on a true All Risk Basis as well as detailed cover for fine art, jewelry, and all personal effects, meeting their clients' needs.

Seippel & Seippel also arrange all other insurances, for the resident and non-resident, from Private health insurance, employee accident and health covers, auto insurance, and private marine covers. All insurance requirements can be arranged with a professional trusted and personal broker.

Lionsgate Capital and Seippel & Seippel

Lionsgate Capital and Seippel & Seippel have extensive joint experience making certain you the client receive the highest quality service. With this team on your side, non-residents can feel confident that they are covered for whatever comes their way, giving them the peace of mind, they need to fully enjoy their time abroad.


Article by Jasmine Seippel

COO of Seippel & Seippel

Seippel & Seippel is an international insurance brokerage firm in Mallorca. The company has more than 34 years of experience in advising individuals on any insurance needs as well as those of large-scale businesses with complex requirements. Their head office is located at Santa Ponsa Boulevard Business Center in Mallorca´s Southwest area.

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