Having home insurance may seem optional — until something unexpected happens. While having a policy that protects your property is always advisable, Spanish law does not require all homeownersto take one out.

That said, there are certain cases where it’s a legal or contractual requirement, especially if you have a mortgage. Let’s look at what the law says and why, even if it’s not mandatory, it can be one of the smartest investments you make for your home.

When is home insurance really mandatory?

In Spain, home insurance is only mandatory if your property is mortgaged. This is established in Article 10 of Royal Decree 716/2009, which sets the minimum coverage required for mortgage loans. Specifically, the property must be insured against fire and structural damage.

This requirement exists mainly to protect the value of the property used as collateral for the loan, not necessarily the homeowner.
In other words, the bank ensures that, in the event of a serious incident, the home retains its value and the loan remains guaranteed.

If you purchase a home without financing (paying in full), there’s no legal obligation to take out insurance, although it’s still highly recommended.

Do I have to buy the insurance from the same bank that gives me the mortgage?

No. Although many banks try to tie insurance policies to their loans, there’s no legal obligation to purchase the policy from them.
Homeowners have the right to choose any insurance company, as long as the policy includes the minimum required coverage (mainly fire protection).

However, some financial institutions may offer discounts or better interest rates if you purchase the insurance through them.
Before deciding, it’s wise to compare prices and coverage — a slightly lower interest rate may not offset a more expensive or limited bank insurance policy.

What if I don’t have a mortgage? Do I still need insurance?

Even if it’s not required by law, having home insurance is highly recommended. These policies don’t just cover the building itself, but also your personal belongings — such as furniture, appliances, and electronics.

Common coverage includes:

• Fire, explosions, or lightning
• Water leaks and flooding
• Electrical damage and short circuits
• Theft or vandalism
• Civil liability (for damages to third parties)

For example: if a water leak in your bathroom damages your downstairs neighbor’s ceiling, your insurer would cover the cost — otherwise, you’d pay out of pocket.

So even if it’s not a legal requirement, it’s a strong financial and personal safety net.

What happens if you don’t have insurance and an incident occurs?

If you don’t have insurance, you must pay for all damages yourself — from repairing a ceiling leak to covering the cost of fire or theft damage.

Without civil liability coverage, you could also face claims from third parties, which can easily amount to thousands of euros.
Even a small water leak can cause major damage to neighboring properties, and without insurance, all those expenses would fall on you.

What if you’re renting? Do tenants need insurance?

For tenants, the law does not require home insurance, though specific tenant policies are available.

The property owner usually insures the structure, but not the tenant’s personal belongings.
That’s why tenant insurance is highly advisable — it:

• Protects your personal items (furniture, clothes, tech devices, etc.)
• Covers theft, fire, or water damage
• May pay for temporary accommodation if you can’t stay in the property after an incident
• Often includes tenant liability, which covers accidental damage to the rented home

Extra tip: review and update your insurance regularly

Your needs change over time — and so does the value of your belongings. That’s why it’s important to review your policy every one or two years to check:

• Whether your coverage is still adequate
• If the insured value of your contents is up to date
• Whether there are new add-ons like emergency repairs or home cybersecurity

Many insurers now offer additional services like express repairs, legal assistance, remote work coverage, or smart home protection (IoT).

In general, having home insurance isn’t always a legal requirement, but it’s an intelligent and responsible choice. It protects you from unexpected events, provides peace of mind, and in many cases, saves you from thousands of euros in potential losses.