Do you need to tell your insurer about the renovation?
Yes, the prudent course is to tell them in writing before work starts. The Insurance Contract Act (Ley 50/1980) obliges the policyholder to inform the insurer, as soon as possible, of circumstances that significantly increase the risk. If a loss occurs without notice, the insurer may reduce the payout or, where there was bad faith, be released from paying.
A renovation changes the risk: outsiders are in the flat, systems are disconnected, the alarm may be removed, there may be scaffolding and dust, and in an old building the common structure is touched. This is a general picture, not legal advice: what counts as significant depends on the terms of your policy, and is decided by the contract and the insurer. So put the question in writing and keep the reply. The contractor should be checked separately, as described in our guide to contractor liability insurance.
Does the contractor's insurance cover my belongings?
Usually not, or not fully. The contractor's liability policy (responsabilidad civil) covers damage to third parties caused through the contractor's fault: neighbours, outsiders and sometimes the client himself as a third party. But it rarely covers the client's belongings that are in the contractor's custody or in the flat during the works, nor theft.
What to ask the contractor for: a current insurance certificate, the limit of liability, the excess (the part of a loss paid by the insured), the period of validity and the list of covered types of work. Clarify whether the policy covers subcontractors and water damage. On large projects a separate contractor's all-risks policy (TRC) is sometimes taken out, covering the works themselves.
The renovation contract should state the contractor's obligation to hold a policy and to show it. Which clauses matter in the contract is covered in our guide to what a works contract must include.
What should you do with valuables and art during the works?
Take them out of the flat. Paintings, collections, jewellery, documents and antiques in a house under renovation are exposed to dust, vibration, humidity and theft. The simplest and cheapest solution is to keep them during the works in a specialist art storage facility or in a bank safe-deposit box.
Prepare an inventory with photos of every item so that you have something to rely on in the event of damage. If the pieces are expensive, ask your insurer whether they are insured separately (a fine-art policy, wall to wall, covering transport and storage) and whether the move needs to be notified. Transport of large pieces is entrusted to art-transport specialists.
If they cannot be taken out, they are shut in a separate room with no works, with a locked door and protection from dust, and access is limited. Safes and secure rooms are covered in our guide to a safe at home, and the placing of art in our guide to art in the interior.
Who is liable for a leak to the neighbours?
If the leak is caused by the works, the contractor and his liability policy are responsible. If the cause is outside the works, for example a pipe in your flat bursts, the owner is responsible, and damage to neighbours is usually covered by the liability section of your home policy. If the cause lies in a common element, the comunidad's policy decides. In practice the cause is found quickly and both insurers are told.
What to do in a leak: shut off the water, photograph the damage, notify the insurer and the neighbour, draw up a friendly report (parte amistoso) between the parties and call a technician. The sooner the source is recorded, the easier it is to identify who is liable. If you are abroad, you need a person with a key who is authorised to shut off the water.
A practice that greatly reduces risk: during the renovation, leak sensors with automatic water shut-off are installed, and the main stopcock is closed in the evening and at weekends. The devices are described in our guide to leak detectors. Guarantee questions after the renovation are covered in our guide to guarantees.
What questions should you ask your insurer before the renovation?
Six questions that need a written answer. First: whether the renovation needs to be notified and in what form. Second: whether the policy stays in force while the works run and while the home is unoccupied or empty. Third: whether exclusions apply to damage connected with construction works or works in the building. Fourth: whether the policy covers contents (furniture, art) stored away from home. Fifth: what limits and excess apply to liability to neighbours. Sixth: whether security measures, such as an alarm or water sensors, are required as a condition of cover.
For complex projects, arrange a consultation with an insurance broker, who helps to line up the home policy, the contractor's policy and any construction insurance. The broker knows the market and the policy terms; clarify in advance how he is paid.
Keep the answers with the renovation contract. If the renovation period lengthens, update the information: the insurer must know about the extension. Your policy and the contractor's work together, so check both.
How do you keep insurance documents when you are far away?
In one shared cloud folder with access for you and your representative. Into it go the policy, the contractor's certificate, correspondence with the insurer, the inventory of valuables with photos, photos before and after the works, photos of concealed works, the contract and certificates. In an insured loss, hours count, and the representative needs everything to hand.
Make copies with descriptive names: a file with the date and contents. Printed originals are kept with your representative or in a safe, not on site. Prepare a short list of numbers: insurer, contractor, building administrator, plumber, representative. Everyone who might meet an emergency should have it.
Give the representative written authority to act: to call the insurer, record damage, call a technician. The scope of these actions is set out in the power of attorney, as explained in our guide to power of attorney. The general system of remote renovation is described in our guide to renovating while living in another country.
How does BCN YARD help prepare documents for the insurer?
We can prepare for your insurer a description of the works, the programme and the contact of the person responsible, as well as a photo report before and after, so that the question of notification is settled with documents in hand. Insurance and legal questions are settled with the insurer and a lawyer, and we help assemble the technical part. We run projects in Russian and Spanish, with one person responsible; write to us and, after the visit and survey, we will prepare the estimate.
Frequently asked questions
Do I need to notify my insurer about the renovation?
It is advisable, in writing and before work starts. The law requires you to report circumstances that noticeably increase the risk. If damage occurs and the insurer did not know about the renovation, it may reduce the payout or refuse it. The exact answer for your case comes from the policy and the insurer.
Does home insurance stay valid if the flat is empty during works?
It depends on the terms. Some policies limit cover during a prolonged absence of occupants or while works are under way; others require notice or additional measures. Ask the insurer in writing whether such exclusions exist and keep the answer with the renovation contract.
Can the renovation itself be insured?
Yes, for large projects there is contractor's all-risks insurance (todo riesgo construcción, TRC), which covers damage to the works themselves during construction. It is taken out by the contractor or the client as agreed. For small works, the contractor's policy and your home policy are often enough. Check it with a broker.