Life in an apartment building in Spain is more than just noisy neighbors and endless debates about elevator repairs. Among the unavoidable expenses, there’s often a mysterious item: community insurance. Many residents don’t understand what they’re actually paying for and see this line as mere formality. But should you really treat this insurance lightly? In 2026, the insurance market for property owners’ associations changed, with regional requirements across the country becoming even more complex.
In this article, we’ll break down what exactly such a policy covers, when it’s mandatory and when it’s just a recommendation, and why the cost can vary wildly even for similar buildings. We’ll also address the key question: is it possible to save money without risking an unpleasant surprise.
Insurance pitfalls
Community insurance isn’t just a box-ticking exercise. It protects shared property: walls, roofs, stairwells, basements, parking lots, and even elevators. In the event of fire, flooding, or vandalism, the cost of repairs falls on the insurance company, not each individual resident. But it’s not that straightforward: standard policies often only cover basic risks, and you’ll have to pay extra for broader options.
The standard package includes coverage for fire, explosion, lightning strikes, as well as costs for debris removal and waste disposal after an emergency. Water damage is a separate issue: insurance may cover both pipe damage and the consequences of leaks, but not always—read the terms carefully. In some cases, the policy also covers damage from hurricanes, hail, or even falling trees, but not all insurers offer these options.
Liability and disputes
Civil liability has a special place. For instance, if a piece of plaster falls from your building’s roof and injures a passerby, insurance will cover medical expenses and potential compensation. Without a policy, such incidents can result in lawsuits worth thousands for residents. Many companies also offer legal support, such as assistance with neighbor disputes, consultations on building management, and sometimes even representation in court.
Don’t forget about coverage for theft and vandalism. Thieves breaking into a shared garage or utility room can cause significant losses. Insurance can help compensate, but only if this risk is included in your policy. Some policies even cover document recovery after fire or flooding, as well as expert assessment services to evaluate damages.
Mandatory requirements and regional specifics
Spain does not have a single law requiring all homeowners’ associations to have insurance. At the national level, this is only a recommendation, not a mandate. However, some regions have their own rules. In Madrid and Valencia, for example, having insurance isn’t just a formality—it’s strictly mandatory. Authorities require every building to be insured at least against fire and civil liability. Failure to have a policy can result in hefty fines—up to 150,000 euros.
In other autonomous communities, the decision is left to the residents’ discretion. Sometimes the obligation is set out in the building’s statute or decided at a homeowners’ meeting. In any case, even if the law does not require insurance, not having it can lead to unpleasant surprises. For instance, if there’s an accident in the building and the reserve fund isn’t enough for repairs, residents will have to pay out of pocket.
How much peace of mind costs
The price of community insurance depends on many factors: building size, year of construction, presence of an elevator, state of utilities and even the neighborhood. On average across Spain, a basic policy costs between 1.5 and 3 euros per square meter per year. For a typical building with 20 apartments, this can amount to between 800 and 2,500 euros annually. If you add extra options—such as disaster protection or legal support—the cost goes up.
Some property management companies offer group discounts if several homes are insured at once. However, saving on insurance isn’t always wise. A cheap policy may not cover critical risks, leaving residents to deal with major issues on their own if something serious happens. Before signing a contract, carefully review the terms, compare offers from different companies, and don’t hesitate to ask insurers tough questions.
Realistic Choices
There are dozens of insurance companies on the market, each promising a personalized approach and ‘the best terms.’ In reality, the differences between policies can be significant. Some insurers stick to a basic set of services, while others include even minor home repairs and provide 24/7 support. It’s important not to fall for marketing tricks and to choose insurance based on your actual household needs.
Experienced property managers recommend not skimping on liability or water damage coverage. These are the risks that most often lead to major expenses. As for extra options—like meteorite impact insurance—consider them a nice bonus, but not a necessity.
If you didn’t know, Spain’s property insurance market is considered one of the most dynamic in Europe. In recent years, competition among companies has intensified, and policies themselves have become more flexible and tailored to clients’ needs. Many insurers now offer online calculators, consultations, and even on-site visits by specialists to assess building conditions. However, despite the wide range of options, experts advise taking your time with the decision and carefully reviewing all contract details to avoid unpleasant surprises at the worst possible moment.
