If the neighbour who caused damage to my home has no insurance, will my own insurance pay?

Yes, if your home insurance covers that type of damage, for example water damage. Your insurer pays you under your policy even if the neighbour has no insurance. It then claims what it has paid from the neighbour. Anything your policy does not cover, such as the excess, you can claim yourself from the neighbour, who is liable with his or her own assets. If you have no insurance either, you will have to claim everything from the neighbour.

Alburquerque Abogados

José Manuel Alburquerque
Insurance law

If you have home insurance

  • Notify your insurer of the claim within seven days and point out that the neighbour has no insurance.
  • Your insurance company pays you for the damage covered and then claims what it has paid from the neighbour.
  • You can claim the excess and anything the policy does not cover from the neighbour yourself.

If you have no insurance

  • Send the neighbour a written claim. Explain what happened, what damage there is and how much the repairs will cost. Also invite him or her to negotiate, because this is a necessary step before going to court.
  • If the flat above is let, claim against the tenant if the leak was due to his or her carelessness and against the landlord if it was due to the poor condition of the plumbing. If this is not clear, you can claim against both.
  • If the water came from a common part of the building, claim against the owners' association, which usually has insurance.
  • If nobody pays, you can sue. For claims of up to 2.000 euros you need neither a lawyer nor a “procurador” (court agent).
  • You have one year to claim, or three if the incident occurred in Catalonia. A written claim interrupts that time limit.

Is it compulsory to insure a flat?

There is no general obligation on owners, either in the “Ley de Propiedad Horizontal” —Spain's condominium act— or in the “Código Civil de Cataluña” —the Catalan Civil Code— although it is worth checking whether the owners' association's by-laws require it. If the flat is mortgaged, mortgage legislation requires the home to be insured against damage, but the bank must accept a policy from any insurance company with equivalent cover. Even if it is not compulsory, it is advisable to have home insurance that includes liability and water damage cover.

This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.