Community Insurance, is it mandatory?

seguros de comunidades

Sooner or later, all Homeowner Associations suffer some incident or disaster. Although it is not something that happens every day, if the community is not properly protected, problems can arise that need to be addressed. If we do not have insurance, we may find ourselves having to deal with unexpected expenses that can result in assessments and thus the need to call Owner’s Meetings for their approval.

Therefore, it is important to hire an appropriate Community Insurance, advised by experts in the field, to cover any accidents or problems that may arise. It can save a lot of trouble for the neighbours and a lot of money.

Is Insurance Mandatory in Homeowners Associations?

There is no national legal obligation in Spain to contract Homeowners Association insurance, so some of them assume a significant risk by not having any policy. However, even though the Horizontal Property Law does not indicate anything about insurance; there are exceptions in communities such as Madrid or Valencia where fire insurance and civil liability insurance for buildings are mandatory.

Many neighbours are unaware of the benefits provided by Community Insurance, therefore, a good administrator should inform the neighbours about the importance of having community insurance. This way, any incident will not result in unnecessary expense in the community,

Importance of having Community Insurance

Community Insurance covers potential damage or problems that may arise in the common areas of a building or housing complex, such as a fire, flood, robbery, among others.

In addition, it also covers any damage that the owners may cause to third parties in the common areas, which is essential to ensure the peace of mind and security of the owners and their property.

Furthermore, an administrator must bear in mind that an incident in a building without a policy can lead to economic and legal sanctions for the community, as well as a loss of trust and security from the owners.

What coverages should a good Community Insurance have?

Civil Liability

Civil Liability coverage protects the community against third parties. It includes payment of compensations and bail, as well as legal costs and legal representation if necessary. This coverage is especially valuable, as it prevents neighbours from having to assume expenses caused by the building to third parties.


Coverage for fire damage is advisable and should be tailored to both the content and the building. In addition, it is advisable to insure damages caused by natural or atmospheric phenomena such as lightning, wind, hail and snow. This coverage ensures the community’s protection against high expenses and serious problems in case of fire.

Electricity, Smoke and Water

This coverage addresses the damages caused to each of the neighbours as a result of an unforeseen event in the community’s installations. The insurer’s professionals are responsible for locating and repairing the breakdowns that cause the damages included in the subscribed policy, thus saving the neighbours from expenses and problems.

Aesthetic Damage

This covers various aspects of the community’s common spaces, such as mirrors and glass, including the installation cost and the cost of the element. Aesthetic damages, although not critical, can cause inconveniences in an uninsured community. However, an insured neighbourhood makes these mishaps insignificant.

Integral Legal Protection

Integral legal protection is essential for a community, as it addresses conflicts and disagreements between neighbours. This coverage allows legal conflicts to be resolved without the neighbours having to assume additional expenses. Legal assistance is useful, for example, in cases of defaulting neighbours or labour disputes with employees who work for the community.

Your policies with experts

We have seen that having Community Homeowner’s Insurance is essential to guarantee the protection and security of real estate, common areas and neighbours.

Given the large offer of insurers, the best option is to choose a brokerage specialised in Community Insurance. It is essential to cover any risk or liability that the community, governing bodies or neighbours may face.

SecurME is the brokerage specialised in insurance for homeowner communities, born from the Mediterraneo group. It has over 60 years of experience in property administration, more than 5,000 managed communities and more than 150,000 served property owners, which guarantees that contracting a community insurance with SecurME means having the support of a team of experts in insurance and communities, who will provide you with personalised advice and attention to adapt the policies to the needs of your Community.

If you are a Property Administrator and you are interested in becoming a Collaborator insurance with Securme, contact here.

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