We assume you are aware of what an urban legend is. One of those things that many people say and take for granted, as incredible as it may be. Like, for example, in the DNI, there is something that tells you the number of Spaniards who are called like you. Are there urban legends in the world of insurance? Well, like the means, there are, yes.
One of them is that home insurance is mandatory, which is a lie, and fat.
Home insurance is very common. It is estimated that three out of four households in Spain are insured, and there are areas, such as the Basque Country, where its extension is practically complete. But very frequently does not mean mandatory because home insurance is not. Well, or yes. The truth is that at the origin of everything, there is an insurance companies obligation that is what creates all the confusion.
What the legislation says about whether home insurance is mandatory is that if a bank plans to securitize a mortgage (that is: if it intends to sell all or part of that mortgage to third parties through mortgage bonds or similar assets), it must cover what it guarantees the loan (the house) with damage insurance. Which he usually does, including home insurance in terms of the loan; conditions that, logically, he is free to set.
Another classic is: if I rent a house, do I have an obligation to insure it? And the answer is no. There is no law that requires you to take out home insurance in case of rental. In reality, what should lead you to hire it, whether you buy or rent, is common sense.
If you enter a renter’s house, we have already said it; you do not have to take out home insurance when renting. But that does not exempt you from being responsible for damages that you cause to the property, for example, due to negligence.
If I rent a house, do I have to insure it? The answer is no.
Imagine that you leave a tap running and you go to Antarctica for five months, after which you discover that you have organized a shaving of three pairs of noses. If your landlord has insurance, it may have happened that he repaired the leak, but do you know who he is going to claim the money from? Well, you because you, with your negligent action, caused the damage.
For all this, the best conclusion to this topic is that, whether you buy or rent, home insurance is not mandatory, but you should have one. The most logical thing is that you have, at a minimum: civil liability coverage, to prevent your bad head from getting you into trouble; legal defense, because after all, you have signed a contract, and it is good to have lawyers who advise and help you; and, finally, theft, especially if the furniture in the house belongs to your landlord, but everything else belongs to you. That is if you rent. If you buy, since the whole house is yours, other coverages are probably also of high interest to you.
