Although our private assets or fundamental rights may be our main concern, we should also remember that most of us live under a horizontal property arrangement, in homeowners’ associations, and that our building can generate conflicts and needs that require insurance to protect it.
Although the Horizontal Property Act does not generally require this insurance, except in some Spanish autonomous communities such as Madrid and Valencia, where community insurance is specifically regulated, today it is more than useful to have a policy that at least guarantees the liability that the building, understood as a whole, may generate towards third parties, covering the damage it may cause, as well as protection against incidents such as fires.
Otherwise, the special assessments to be paid by residents could be very high, with costs that are practically impossible for many neighbours to assume, especially in the current economic context.
Without further delay, let us look at the most common covers in community insurance that insurers include in their policies, remembering that they are mainly designed to cover unexpected events or misfortunes.
Guarantees Included in Community Insurance Coverages
The essential traditional covers are aimed at protecting the building or the damage it may cause, both in relation to areas of the property and, in some cases such as theft, to goods located inside it.
In any case, the final wording established by each insurance company will apply, although the main guarantees usually protected in the general conditions can be listed as follows:
- Fire: this also includes direct damage to the building caused by explosion, whether gas or vapour, lightning strikes and, normally, electrical damage. It usually extends to sudden or accidental smoke damage, whether originating inside or outside the building.
- Liability: covers damage caused to third parties by the building, understood as the homeowners’ association and its members, whether to adjoining properties or to another owner in the same building.
- Water damage: accidental in nature, whether by action or omission, such as leaving a tap open or faults in a stopcock, this includes leaks, overflows and blockages, as well as the breakages they may cause. It also covers the professional’s work phases, from search and location to repair. This is often configured as a separate cover called “technical assistance”, which handles expenses of this kind.
- Weather events: covers damage caused by rain, wind, hail and snow, and includes expenses such as mud removal and, where necessary, debris removal and demolition. There is also a less common specialised cover, which usually increases the policy price, known as garden reconstruction, protecting certain plants and trees in the building when damaged as a result of these weather events.
- Theft: applies only to common areas and when force or violence against property is involved, as defined by law. Both belongings and damage caused by completed or attempted theft may be covered. It usually includes services such as replacement of keys and locks, and replacement or renewal of personal objects and documents.
- Aesthetic damage: this guarantee covers the costs required to repair or compensate for damage affecting the visual appearance of the affected property, usually the building, depending on the policy. The damage must have been caused by a claim covered by the policy, such as water damage or fire. For example, after a fire, replacement of tiles or painting of affected ceilings and walls may be covered.
- Breakages in common areas: this includes different types of glass and sanitary ware. Vandalism is also often included, provided it has been caused by people outside the community.
Other Common Covers in Community Policies
- Legal defence: a very useful cover when dealing with claims for damage suffered by the community or defending against claims received. Some policies also include claims against debtors for unpaid community fees or defence in proceedings the community must face, including costs and other expenses.
- Rental guarantee: covers reimbursement of rental income in the name of the community, for both premises and dwellings, provided it arises from an event contemplated in the policy, such as temporary uninhabitability derived from a specific claim.
- Employee accidents: essential when the community has employees, such as a concierge, in which case cover extends to compensation and necessary medical assistance.
- Building uninhabitability: applies when it is clearly impossible to live in the building, so the insurer assumes accommodation costs, without distinction between owners and tenants or between dwellings and premises, until the situation is restored within the policy terms.
Additional Community Insurance Covers
Optional or supplementary community insurance covers are those which, although not essential, strengthen the protection of the community, residents and their wellbeing. Some examples are:
- Community DIY: provides a handyman service for non-urgent services in the building.
- Pest control: prevents and/or eliminates pests that are harmful to the health of residents in the insured building.
These are the main community insurance covers currently found in our buildings, regardless of the insurance we may take out for our own homes. If you want to learn more about community insurance or any other type of insurance, browse our website or contact us; we will provide all the information you need about the insurance that best suits your needs.