That’s it, you are now the proud owners of that place in the sun you have been dreaming about for a long time … or maybe not so long!
So, now you need to make sure that you are looking after it properly by ensuring that your property has adequate insurance. The process is very easy, and we can provide you with a comprehensive quote in English, Spanish, German, or French.
If you own a property in a complex, you will pay community fees. You might hear that you only need contents insurance as the building is covered by the community, and therefore covered within your community fees. This is not 100% correct. The community has insurance for the building, yes, but only for the communal areas and structure. This means that once you open your front door and are inside the property, if something happens to your building (walls, floors, pipes, windows etc.), it is your responsibility and not that of the community. The community will only be liable if there is a leak or breakage in the waste pipe that is hidden somewhere in a column within your property, and that goes from the top floor to the ground floor. If it is a broken pipe from, let’s say, your sink to the main waste pipe, then it is not covered by the community. Another example: if there is a small fire due to the white goods in your kitchen and the walls need re-painting because of the smoke. Well, as you only insured the contents, you will end up with a paintbrush in your hand!!
The buildings insurance amount is based on the m² of the property, and the insurance company estimates a price to rebuild (this differs based on the area your property is located in and the kind of construction). That amount will be much lower than the price you paid for the property, but remember that you also bought the location, which you will never lose, even if there is a problem with the building.
The contents amount includes your kitchen and white goods. The average cover for a 1 bedroom apartment is €12,000 – €14,000 (it goes up quickly when you add furniture, linen, electronic equipment, and other household items). So, for a one-bedroom apartment that you are not renting out, the insurance premium will be in the region of €175 per year (a bit more if it is a ground-floor property), and up to €225 if you are renting it out (long-term only). Please note that the insurance also includes a third-party liability of €300,000, which can be increased if you feel you need more coverage in the event of something happening to one of your guests.
If you have decided to live in Tenerife, you might also consider buying a car. It is worth noting that having more than one insurance policy may allow you to take advantage of a discount. You might also consider taking life insurance with a view to covering any inheritance tax costs by paying only a couple of hundred euros in premium per year. Or perhaps you might consider health, dental, or pet insurance.
Why do we know all that? Simply because Tenerife Property Shop is an agent for Caser Insurance. Caser has a dedicated expat insurance department, allowing Tenerife Property Shop to offer you tailor-made insurance policies that really adapt to your needs.
So do not hesitate to contact us for a quote, better to be SAFE than sorry!
