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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.

Legal tip 276.Public Insurance for rentals
20 May 2010 @ 09:31

The Public Society for rentals (SPA) under the Ministry of Housing has created a new insurance covering unpaid monthly lease rents for 13 months. This adds to the current offer of this type of Insurances by private companies.

The main advantage of this type of Insurances is that the landlord does not have to wait to obtain a court order to receive financial compensation from the insurance company. Compensation is paid to him as soon as the lawsuit is brought to Courts. 

The insurance by the SPA also offers compensation for damages or thefts of up to 3,000 Euros. It also provides legal defense up to 3,000 Euros to the conflicts that may arise, among others: evictions for non-payment or non authorized works, as well as other claims.

It also provides a 24 hours help desk to deal with damages caused by events which are not covered by the insurance policy.

In order to sign the rental insurance, the landlord must provide the lease contract and the tenant's documentation to ensure that the payable rent shall not exceed 35% of their household income. 

This insurance by the SPA has a cost of 23.4 Euros per month for rents up to 600 Euros. From this income threshold, the amount payable is increased proportionally.

It has always been our advise to use this type of Insurances, either provided by a public or a private company, and to submitt the rentals to arbitration rather than Courts.

For earlier posts on this you can click on here  or here

Warm wishes,


"The Cape of Trafalgar, from the road among Zahara and Barbate (Cadiz)", by Luis López-Cortijo


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