In all Communities of Residents there are accidents and incidents which, although they do not happen on a daily basis, can cause significant damage which will result in the corresponding claim.
In fact, according to data from UNESPA, the Spanish Union of Insurance and Reinsurance Entities, buildings suffer various incidents such as:
- Once a year a water accident.
- Every 4 years due to atmospheric phenomena.
- Every 7 years for liability.
- By fire every 16 years.
- For theft every 17 years.
- Every 30 years for electrical breakdowns or failures.
These accidents entail a series of expenses that the Community of Property Owners will have to face, and they will have to pay the corresponding expenses in order to solve the accident.
In order to avoid a very large spill, the best option is to contract a Community Insurance.
In this way, if an incident or claim occurs, the insurance company, and not the neighbors, will be the one required to pay the corresponding spill.
As I have always said in these informative articles, when contracting this or any other Insurance, the best thing is to have the advice of an Insurance Advisory, of professional experts such as those who make up the team of Euroteide Insurance.
We know this type of policy in depth and we are convinced that we can find the best Community Insurance for homeowners in Tenerife South and the entire Canary archipelago.
What does the Community Homeowners Insurance cover?
It is normal for a Community Insurance for homeowners to have fairly extensive basic coverage.
HR Coverages that are usually included in any Community Homeowners Insurance
- Basic guarantees of material damage: the insurer must cover damage from fire, lightning, smoke, explosions, failures in the electrical system and acts of vandalism, among others. In addition, this Insurance must cover the expenses caused by the extinguishing of fires, the demolition of the building, and the collapse or forced eviction.
- Civil liability against third parties: It must also cover the civil liability that is generated when damage is caused to a third party. Thus, it will be the insurance company that will have to face the payment of compensation for civil liability. When is civil liability generated? Let's imagine that a neighbor suffers an accident in a common area because the ground is in poor condition. In this case, the insurance company will be in charge of paying the compensation owed to the neighbor who has suffered damage due to the poor condition of the common areas.
- Legal defense: One of the most important guarantees in this Insurance is legal defense, which includes the expenses of lawyers who represent the community in legal problems that may occur.
- Leaks and water damage: water damage is very common. In fact, they are produced at least once a year, so it is essential that a good Homeowners Community Insurance has this guarantee.
- Community employees: Additionally, it must have guarantees to cover the protections of the building's employees, such as the doorman or maintenance personnel.
Is a Community Homeowners Insurance compulsory?
Although taking out this type of insurance is highly recommended, is it mandatory that the Neighborhood Communities subscribe this Insurance?
In accordance with Law 38/1999 on Building Management, home builders are obliged to take out Insurance with a duration of 1 year that covers material damage to the building.
As for the liability periods, they are set in periods of one, three and ten years,, depending on the various damages that may appear in the buildings. The constructor, during the first year, must answer for the material damage resulting from poor execution; All the agents that intervene in the building process, for three years, will answer for the material damage to the building caused by vices or defects affecting habitability and for ten years, for those resulting from vices or defects that affect the structural safety of the building.
However, once these deadlines have expired, homeowners will not be able to demand that the builder and other building agents pay for the damage. It is just at this moment where the vital importance of having a Community Insurance enters the scene.
However, there is no law in our country that, at the state level, requires the Neighborhood Communities to take out the Insurance for Communities of owners. In fact, the Horizontal Property Law contemplates the possibility that the Community of Owners may take out Community Insurance for the building, but does not oblige to subscribe this Insurance.
However, although there are no state regulations that make it compulsory to take out Community of Owners Insurance, there are Autonomous Communities, such as the Community of Madrid or the Community of Valencia, that do require the taking out of a policy that covers fire damage and third-party liability.
In summary, only some Autonomous Communities make it compulsory to take out Community of Owners Insurance.
The best way to purchase Community Insurance
In order to take out a Community Insurance policy, it is necessary that it be included in the budgets of the Community of Neighbours and that these budgets be approved by the Board of Owners.
Thus, the Board of Homeowners must meet at least once a year to approve the annual budgets of the Community of Neighbors - in which the contracting of Community Insurance must be included.
In any case, the annual budgets will be approved by a simple majority of the Board of Owners.
Without a doubt, the best way to contract a good Community Insurance is putting yourself in the hands of a good Insurance Advisory.
At Euroteide Insurance we take into account the needs and particularities of each Community of Neighbours in order to find the tailor-made Community Insurance that best suits each one.
Call us, stop by our office or make a video call, and let's talk about your Community Insurance ...