Self-build: Building my house in Spain and Insurance

If you are considering self-building your home, it is advisable to know what self-builder insurance you may need in order to protect you and your house/flat you are building.

In Spain, you will not be obliged to take out insurance for the construction of your house. However, this does not absolve you of your responsibilities, because, even if you are not a professional, the law imposes the same obligations as you are responsible for everything connected with the building site. Civil liability insurance will be particularly important to cover cases of work-related accidents, which can directly affect you , because if you do not have civil liability insurance, you will have to face with your personal assets to cover the damage.

What is the law governing construction insurance in Spain?

First of all, the law that governs housing construction insurance is the Ley de Ordenación de la Edificación (Law 38/1999).

This law highlights 3 types of insurance: :

• Builder's guarantee: to guarantee for one year the compensation of material damages due to defects or deficiencies in the execution affecting the elements of completion or finishing of the works. It may be a deduction by the developer of 5% of the amount of the execution of the work. There is no insurance in Spain to cover this obligation.

• Triennial insurance: to cover for three years the compensation of damage caused by defects in building elements or installations which result in non-compliance with habitability requirements (waterproofing of roofs and terraces, facades and secondary works). This insurance is optional.

• Ten-year insurance “decennial insurance": to guarantee compensation for ten years for material damage caused by defects or faults that originate in or affect foundations, supports, beams, floors, load-bearing walls or other structural elements, and that directly compromise the strength and stability of the building.

However, the guarantee mentioned in point 3 (decennial insurance) will not be required in the case of the individual self-developer of a house for his own use. However, in case of transfer of housing (e.g. sale of the sale of housing), it will be compulsory to take out this guarantee for the remaining time.

If I am self-building, what insurance should I take out?

For this reason, the self-builder should consider taking out three types of insurance, even if knowing that there are not compulsory. The insurance will cover you again any injury or damage (liability and physical damages) that could occur while you are working on your site.

1) ALL RISK CONSTRUCTION INSURANCE

If you have approached a bank to finance the construction of your home, the bank may require you to take out "todo riesgo construcción" (TRC) construction insurance. All-risk construction insurance is paid in a single instalment and the work is insured throughout the period of execution.

You can check our article dedicated to All Risks Construction Insurance by clicking here.

2) CIVIL LIABILITY INSURANCE

The promoter of a work (even if it is the rehabilitation or construction of his own house), is responsible for damages caused to a third party by the execution of the work as an agent involved in the construction.

For this reason, even if you share responsibility with other parties such as the architect and builder, it is recommended that you take out civil liability insurance or self-help insurance to ensure that no liability is left uncovered.

3) DECENNIAL INSURANCE

It is recommended to take out decennial insurance for the following reasons:

• to cover structural damage to your house over the next ten years.
• if you wish to sell your house before the 10-year period has elapsed, you will need to take out decennial insurance in order to finalise the sale. Ten-year insurance is much cheaper if it is taken out at the time of the work.

You can request a quote by clicking here.

What types of damage are covered by decennial insurance?

The Decennial Civil Liability insurance will cover claims for 10 years from receipt of the work that may be related to:

• thermal insulation
• wall cracks, swimming pool, etc.
• water infiltration on the facade or roof (lack of waterproofing)

If you do not have an Decennial construction insurance, do not hesitate to ask us for a comparison of the best insurance here

As you can see, insurances for construction are a little bit complicated. Julia Jannin, Managing Director of Inov Expat is an expert. If you have any questions, please do not hesitate to contact her directly by phone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by mail : [email protected]

Contractors All Risks construction insurance: What does it cover?

Why take out Contractors All Risks construction insurance (CAR)?

The purpose of All Risks construction insurance (CAR) is to cover material damage occurring on the construction project (example: fire, landslide, incorrect operation of a machine, etc.)

The policyholder is generally the promoter, the main contractor or the private or professional client. Banks are also very susceptible by taking out this insurance since they can be indirectly affected by the damage suffered by the work, constituting their main and often only guarantee for the recovery of their credits. These entities are normally listed as beneficiaries of these contracts.

It is a temporary insurance and will cover all accidental damage occurring on the site.

What are the main guarantees?

The insurance will cover any damage to construction if the damage or material loss produced is a direct consequence of an accidental and unforeseeable cause.

For example, the main guarantees are:

• Conventional risks: fire, explosion, lightning, theft, collisions, shocks, etc.
• Natural hazards: Wind, hail, rain, snow, frost, storm, flood, overflows, subsidence, landslides, landslides, earthquakes, etc.
• Specific risks inherent in execution: human errors, material faults, execution faults, etc.

What would be the sum insured ?

completion of the work. Therefore, it is not necessary to be guided by neither the value indicated in the project (in some cases lower) or the selling value (higher if the land and operating profits are included).

The insurance policy should be taken out before work has started or if it has just started.

What information do I need to receive an insurance quote?

• Nature of the work
• Quote
• Works duration

If the work affects the structure, the Project of construction “memoria de obras” will be necessary.

If you do not have an All Risks construction insurance, do not hesitate to ask us for a comparison of the best insurance here

As you can see, insurances for construction are a little bit complicated. Julia Jannin, Managing Director of Inov Expat is an expert. If you have any questions, please do not hesitate to contact her directly by phone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by email: [email protected] 

Company Civil Liability Insurance: all you need to know in 3 questions!

As a professional, you can cause damage and injury to third parties and it is important to take out liability insurance that is adapted to the specific risks of the company.

Why take out Civil Liability insurance?

By law, you are required to repair any material damage, bodily injury and consequential damage caused to a third party. Every business must take out an insurance policy in order to get a coverage that protects it as well as possible.

What are the types of liability insurance?

There are several types of civil liability:

Employer's liability insurance: covers claims related to bodily injury suffered by employees as a result of an industrial accident for which the company is responsible.

Product liability insurance: covers claims related to damage caused to a third party by the product manufactured and / or supplied by the company.

Business liability insurance: covers claims related to material or bodily damage and indirect damage caused to third parties in the context of the insured activity. To learn more about this insurance read the following article.

Rental liability insurance: covers the tenant against any consequence of a fire / explosion or water damage.

Professional Liability Insurance: covers the liability of a company following errors, omissions or negligence in the performance of professional activity which causes economic or material damage to a third party. To learn more about this insurance read the following article.

Liability insurance for directors and officers (D&O): covers and protects the personal assets of directors and officers of a company or association against claims they receive as a result of damage caused to the company, shareholders or to third parties resulting from management errors. For more information about this insurance read the following article.

How much does civil liability insurance cost?

Insurance coverage and costs vary depending on the activity you want to insure.

LIBERTY Offer ( until 26/05/2021) :

• Corte inglés gift card of 30€ for any insurance with a minimum premium of 200 euros, 60€ if premium over 400€/year and 100€ if premium over 600€/year.

If you do not have Civil Liability insurance, do not hesitate to ask us for a comparison of the best insurance here

If you have any questions, please do not hesitate to contact us directly by phone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by email: [email protected] 

Differences between Business Liability and Professional Liability

Business Civil Liability insurance or also called General Civil Liability covers damage caused in the course of the company's activity. Business liability and professional liability seem quite similar, but they are different concepts.

Insurance that includes professional liability cover mainly covers economic damage resulting from errors, omissions or negligence in the performance of the professional activity. Professional RC is generally very useful for independent professionals such as doctors, lawyers or architects, whose activities present risks to their clients as they develop their business. In contrast, most activities involve risk. (IT companies, translators, consultants, Marketing agencies….)

Examples of claims related to professional liability insurance

Marketing and communications professionals, for example, are exposed to claims related to negligence (simple typographical errors, use of an image protected by copyright, etc.)

Example of a claim related to business liability insurance

A customer enters to a commercial shop and falls because the floor was slippery. He breaks his arm and his glasses. In this case, the shop is responsible for personal damage (broken arm) and material damage (broken glasses). The customer mayrequire the  payment of medical costs and repair of the glasses. The business liability insurance will cover these costs.

LIBERTY Offer ( until 26/05/2021) :

• Corte inglés gift card of 30€ for any insurance with a minimum premium of 200 euros, 60€ if premium over 400€/year and 100€ if premium over 600€/year.

If you do not have Civil Liability insurance, do not hesitate to ask us for a comparison of the best insurance here

if you have any questions, please do not hesitate to contact us directly by phone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by mail: [email protected]

The D&O insurance: Everything you need to know

What is Directors & Officers Liability Insurance?

A Directors & Officers insurance or D&O insurance, is a liability insurance that protects the members of the administrative body of a company and the persons of the company who hold management positions and whose decisions are binding on the company.

Who is this insurance directed to?

This insurance is intended for managers, directors and officers of companies or associations seeking to guarantee their personal liability and protect their assets against claims by third parties (suppliers, creditors, employees, shareholders, etc.) arising from their decisions and management.

The policyholder of the insurance must be the company (SME, large company or association).

 What does the D&O insurance cover?

D&O insurance is mainly used to cover the defense costs of directors and officers (legal costs, costs and fees) incurred in defending a claim which may include recourse costs and incorporation costs and any possible compensation to which they are condemned by the courts for the accomplishment of a wrongful act, either by action or by omission

Why do you need D&O insurance?

• Because it protects your assets and those of the company against unforeseen events in the development of the business.
• Because it offers peace of mind against any claim arising from your position or mandate.
• Because today, the risks associated with running a business do not only affect large companies, but also small and medium-sized companies.

 What types of incidents does D&O insurance cover?

• Claims from creditors and suppliers for defaults, violation of commercial agreements, etc.
• Lawsuits by your employees for dismissal, breach of contract, discrimination, harassment, etc.
• Prosecution of competitors for unfair competition, industrial espionage, etc.
• Prosecution of partners and shareholders for mismanagement and for not having taken the right decisions in the management of the company.
• Complaints from public bodies and authorities for non-compliance with rules and regulations.

If you do not have D&O insurance, do not hesitate to ask us for a comparison of the best insurance here.

If you have any questions, please do not hesitate to contact us directly by phone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by email: [email protected]

Everything you need to know about Professional Liability Insurance

No one is exempt from making a mistake or neglecting a detail, which is why it is essential for a company to have Professional Civil Liability insurance adapted to its activity.

What does professional liability insurance cover?

It covers liability derived from errors, omissions or negligence in the performance of professional activity which result in economic, personal or material damage to a third party.

Is professional liability insurance compulsory?

Professional liability insurance will be compulsory for activities related to health care (doctors, dentists, etc.) but also for engineers, architects, technicians, travel agencies or insurance brokers. However, many other activities are likely to need them such as consultants, translators, IT / marketing company because the risks or disputes can be numerous.

Typical example of a professional civil liability claim:

A company hires the services of a marketing consultant to design the new company brochure. Due to an error in the interpretation of e-mails, an older version is printed. The brochures are not correct and cannot be delivered during the official presentation. In this case, the consultant is responsible for the damage caused. Professional liability insurance will cover the repair of this error.

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How do I get a professional liability insurance quote?

To receive a professional liability insurance quote, you must provide:

• CIF / NIE
• estimated turnover
• number of employees,
• activity area

LIBERTY Offer ( until 26/05/2021) :

• Corte inglés gift card of 30€ for any insurance with a minimum premium of 200 euros, 60€ if premium over 400€/year and 100€ if premium over 600€/year.

If you do not have Professional Liability insurance, do not hesitate to ask us for a comparison of the best insurance here

if you have any questions, please do not hesitate to contact us directly by phone on +34 93 268 87 42  or through WhatsApp on +34 627 627 880 or by email [email protected]