Why ask about insurance
A contractor's civil-liability insurance pays for damage their work accidentally causes to others: the neighbour below, the building's shared elements, a passer-by. Without it, compensation depends entirely on whether the contractor has the money and the will to pay. If either is missing, the neighbour will turn to the owner of the flat the water came from, which is you.
In a renovation inside a block of flats, these cases are not unusual. So the policy question is asked at the first meeting and the certificate is requested before signing. A serious contractor does not take it as mistrust: they ask the same of their own subcontractors.
What a policy usually covers, and what it does not
A typical public-liability policy covers accidental damage to third parties during the works: a leak into the flat below, damage to the shared stairwell or lift while carrying materials up, a tool dropped from a balcony. Exact terms, limits and exclusions depend on the individual policy, so read the certificate, not the insurer's marketing.
What such a policy normally does not do is pay to redo poor workmanship. Crooked tiling or a wrong shower fall is a matter for the contract and the contractor's warranty obligations, not the insurance. Ask separately about injuries to workers on site (that is a different cover) and about subcontractors: whether they are included in the policy or each has their own.
For new residential construction, the LOE (Spain's building act) provides other guarantees, including ten-year structural insurance. That is a separate subject and should not be confused with a contractor's liability cover on a renovation.
Three scenarios from Barcelona renovations
Stripping out an old bathroom in an Eixample flat: a worker cuts a pipe, the stopcock in a century-old building will not hold, and within twenty minutes the water is through the floor slab. The neighbour below has a soaked ceiling with decorative mouldings and lifting parquet. It is a textbook claim, and restoring a moulded ceiling costs more than you would think.
Carrying materials up: while moving plasterboard sheets up a narrow staircase, a marble step or the lift car, both owned by the comunidad de propietarios, gets damaged. The building administrator sends the bill.
Façade or balcony work: a piece of render falls from the scaffold or balcony onto a parked car. In all three cases, without a policy, the conversation is between you, the contractor and the injured party, and working out whose liability it is will not be quick.
How to read the policy certificate
Ask for a certificate issued by the insurer, not a screenshot. Check five things. The policyholder is the same company with the same NIF as in your contract. The insured activity is construction and renovation, not, say, carpentry only. The limit per claim and any sub-limits, for example for damage to neighbours. The period of cover spans your works dates. The excess: what the contractor pays out of pocket on each claim.
If in doubt, you can contact the insurer using the details on the certificate and ask whether the policy is in force. It takes five minutes, and an honest contractor will not mind.
What to put in the contract and check yourself
The contract should oblige the contractor to keep the policy in force for the whole duration of the works, with a copy of the certificate attached. If subcontractors will be on site, state whether the contractor's policy covers them or each has their own. The other clauses that protect you are covered in our article on what a renovation contract must include.
Check your own home insurance too. Some policies have conditions that apply during building work, and it is better to know them in advance. The building is usually insured by the comunidad de propietarios as well; the building administrator should know your works dates, especially if risers or the façade are involved.
If damage has already happened
First, stop the damage: shut off the water, cover the opening, move people away from the danger area. Then take dated photos and video of your flat, the neighbour's flat and the shared areas. Notify the contractor in writing so the date is on record. The claim is lodged with the insurer by the contractor as policyholder; ask for the claim reference.
Do not carry out permanent repairs in the neighbour's flat before the insurer's loss adjuster has visited, unless it is an urgent safety measure. Otherwise there is nothing left to assess. Keep the messages and the receipts for urgent expenses.
BCN YARD holds a current civil-liability policy with Hiscox, S.A. The details are on our "About us" page and we send the certificate on request. Check it as strictly as you would any other company's.