Overdue neighbours? A broken downspout? Every year, almost 1 million accidents in resident’s associations are registered in Spain. Who repairs them, how much do they cost, how do you protect yourself?
Passed over by water
Do you know that most resident association incidents are caused by water leaks?
You should know that Horizontal Property Law regulates builder’s liabilities. It will be liable for 10 years for the building’s stability defects, 3 years for construction defects and 1 year for finishing defects; all other liabilities are the owners’.
This law does not require contracting Resident’s Association Insurance, although some Autonomous Communities do require it (Madrid and Valencia).
The Owners’ Association will contract the Resident’s Association Multi-Peril Insurance. It is named for the scope of guarantees it covers: fire, theft, vandalism, civil liability, breakage, impacts, electrical and water damage, drain clearing, pests, unloyal employees, defaulters, aesthetic damage, etc.
In determining the building’s price, its size and year of construction, safety elements and improvements made will play a role.
Do not mess up – Contracting insurance for less money so it’s cheap. You are only compensated for what the damages cost and the owner(s) will need to handle the rest.
– Hiring coverage that is not appropriate for the type of resident’s association. This just gets you really mad because damage is never actually covered when there is a problem.
– Contracting insurance “just” for the price. When the responsibility for everything is the owners’ and they must pay for everything themselves.
And remember! If your Resident’s Association’s Insurance does not cover the amount of an accident, it falls fully on co-owners , who must be responsible for the matching proportional part, either due to a loss in which a third party has had an accident or the arrangement of the humidity caused by the general piping in the neighbouring dwellings. Do not risk it