10 year newbuild property insurance Spain ‘Seguro Decenal’

 Since may 2000 it has been obligatory in Spain for ‘Promotors’ or property (normally the developer) to take out a ‘Seguro Decenal’, in order to cover the building, should it be subject to any significant defects that affect it’s structural stability and resistance.

Firstly it is important to note that most  builders will opt for the basic obligatory cover. While optional cover is available to cover elements such as the water tightness of roofs and walls, many builders will not take additional cover and though  elements that affect the habitability of the building may need to be rectified by the builder up to 3 years from the date of completion (see below), after 3 years it’s only the remaining 7 years of the 10 year policy that can be called upon. Many owners therefore find that having found problems with their Spanish property after 3 years, it is only those defects that affect structural stability that can realistically be pursued with the insurers. The correct diagnosis of problems and identification of structural relevance is therefore important.

Post purchase calendar:-

First 15 days: Owners should report any evident defects to the builder, who then has 28 days to rectify them. Significant omissions may even give the owner an opportunity to withdraw from the purchase, though in practice this may be lengthy and costly to achieve. (Such defects are best identified prior to completion and corrected before final monies are paid as the current market has seen many builders folding)

First year: In the first year the builder is liable to correct all defects reported to them. What’s important here is that the builder repairs defects properly and doesn’t just bodge them up to last for a short period. The first year is the best opportunity to get things put right properly. The right repair works are therefore essential including the use of the right materials, otherwise problems are likely to reoccur later (when claiming may be very difficult). While a conscientious builder may opt to properly correct any problems, others will be looking for the cheapest option. Unfortunately, some of the most serious defects might take some time to show up.

Second and third years: Over the next two years, the builder is still responsible for repairing major defects that would make the property inhabitable. But of course such issues can be difficult to argue. While flooding from a leaking pipe or roof may be the obvious responsibility of the builder, lesser issues may not get any response and BE WARNED! Some builders can be impossible to pin down, evading responsibility by claiming insolvency, changing their company name or simply disappearing.

Unfortunately some builders see the 10 year obligatory insurance in Spain as a way out of responsibility and in extreme cases it has actually resulted in builders skimping on crucial details such as foundations because -‘it’s insured so we’ll cut corners’, it’s therefore important to understand that whilst a good insurance policy may protect owners it does not automatically mean that a new property is better built than one that is 30 years old. Whilst the terms of most policies will require an increased level of control (e.g. most policies require that a site substrate test is carried out – ‘estudio geotecnico’ and that works are overseen by an ‘Organismo de control tecnico’ – ‘OCT’), a general lack of control and a tendency for some Architects and ‘Tecnicos’ to turn a blind eye to the poor practices of builders that give them lots of work (and money), results in defective or sub standard elements slipping through.

First ten years: The builder (normally ‘Promotor’ but see below!) must take out seguro decenal insurance. This is the ten year policy covering the  costs of repair in the event of a structural failure in the building. Remember it may well not cover other defects, so if you can’t find the builder or they simply won’t repair, the 10 year policy may not be of any help, other than for cases of structural failure.

What if there is no policy?

I have seen an increasing number of cases where no policy is in place. This occurs through a ‘loophole’ whereby an ‘auto promotor’ (owner/developer) has built the house for their own occupancy with the intention of living in it for the duration of the first 10 years. Through a lack of understanding at the time of purchase, the builder may submit all paperwork showing the buyer as ‘Promotor’, therefore the obligation to take out the insurance (if they intend to sell on within 10 years) rests on their innocent shoulders. It is only later when they encounter defects, try to register / mortgage or sell the property, that the non-existence of a policy may come to light. Furthermore, as the insurers like to specify a level of control during the construction period, it can be difficult to get insurance post completion.

Will the insurers cough up when needed?

If there is a strong enough case that meets the terms of the policy, yes, they are obliged to pay, but of course the insurance assessors job is to wriggle out of any responsibility. Commonly they may initially claim that an issue is nothing to do with them but instead down to the builder. This may be correct if the issue is simply not covered in the policy, but if it is covered (and all issues that affect the structural stability have to be), it is their responsibility to pay out for such issues, whether the builder is around, absconded or bankrupt.

Of course where a serious omission has occurred due to builder negligence, the owners may not be confident in the same builder correcting the problem and if you are really unhappy about the original builder ‘having a go’ at correcting a serious structural defect, it is important to stress this lack of confidence to the insurers, which in turn will help to highlight the fact that this is their, rather than the builder’s responsibility.

Will the courts need to be involved?

Unfortunately the process of getting any parties to admit to responsibility can be drawn out and sometimes fruitless, such that a court decision may be needed to force one or more parties to pay up. The good news is that there are some specialist lawyers with experience in such cases, and the good ones won’t advise you to proceed unless you have a decent case. Of course all court actions carry some risk and ultimately the decision to proceed will be down to the owner, for this reason is it often the larger claims that merit court action. In some cases for minor issues, it may be worth simply getting a decent builder in to put things right. A Building Surveyor’s report is advisable so as to clearly establish what the defects are and how they might be corrected including costings. This is sometimes backed up with an Architect’s second opinion, though it should be noted that in Spain not all Architects will have the defects knowledge of a building surveyor and hence should not be solely relied upon for initial diagnosis.

When entering into a claim, it often soon becomes clear that the builder, architect, town hall and insurer are all keen to ‘pass the buck’ when it comes to identifying who was actually negligent and in some cases it may actually be all parties. Don’t take no for an answer from the insurers. Theoretically if there is an obvious defect covered by the policy, they should pay up without the need for court action, but in reality getting them to dip into their pockets can be a difficult process.

Trust no one!

Or at least trust no one that was involved in the original build process and purchase. While you may get one or more of the parties clearly on your side, it is common for all involved to try and make light of what may be a very serious structural issue. Commonly the Architect or Tecnico involved in controlling the project will come up with an understated report or inadequate short-term solutions. I am often called in to examine a project Architect’s or builder’s proposed ‘solution’ and many of them are simply not good enough (some have already proved to have failed). Provided that evidence is submitted to the insurers or courts to demonstrate the inadequacy of such ‘remedies’, they are fortunately very willing to listen to independent expert opinions, other than those of the parties involved in the project, so if you are not making positive progress get independent advice for both structural and legal issues.

Protecting yourself:-

If you are buying a newbuild get your solicitor to check that the decenal insurance is in place (and included with your deeds), that it is not your responsibility as ‘Promotor’ and that the cover is adequate for your purposes, (you may wish to pay the extra for a ‘belt and braces’ policy extension).

The sooner you report defects to the builder (in writing) the better, so it’s worth having a snagging survey check and further check before the 3 year and 10 year deadlines expire (especially if there is any evident cracking in the building structure).

The most critical defect commonly involves inadequate foundations, and you should take every opportunity to ensure that your newbuild includes adequate foundation design and control, even if this means paying the builder more money to carry out necessary sub ground works.

The current market downturn means that many builders are in financial difficulty. It is hence best to get all defects remedied prior to payment of final monies.

NB:- Information for advice purposes only. Proper legal and safety procedures should be followed for all property purchases and building works.

Copyright- Mark Paddon 2009

Homeowners insurance does not cover all your contents and property so you may need to find additional coverage. Here’s how to find cheap contents and property insurance the easy way.

Why Purchase Additional Contents and Property Insurance?

Contents and property insurance works with your homeowners insurance to increase or add coverage for items such as:

* Power golf carts, garden tractors, lawn mowers, and snow blowers

* The property of a parent in a nursing home

* A student temporarily living away from home

* Sewer back up

* Water Damage

* Home computer software

* Equipment and supplies for an at-home business

* Securities, money, or bullion

* Watercraft and equipment

* Spare automobile parts

* Animals, birds, and fish

* Motorized wheelchairs and power scooters

* Jewelry and furs

* Collections, such as coins, stamps, comic books, and trading cards

* Bicycles

Where Can You Get Cheap Contents and Property Insurance?

The easiest way to find cheap contents and property insurance is to begin your search on the Internet. There are insurance comparison websites where you can get fast quotes from a number of different insurance companies. You can then decide which company’s quote is best for your circumstances. (See link below.)

Deciding on a Company

When you have several contents and property insurance quotes in hand, how do you decide which company to select? Here are some tips:

* Go to the website for your state Department of Insurance and see how many complaints have been lodged against each company.

* Ask friends and co-workers if they have any experience with each company.

* Go to jdpower.com where you’ll find ratings and reviews of major homeowners insurance companies based on overall customer experience, price, and customer service.

Before you purchase your insurance, find out if the company offers additional discounts on contents and property insurance. For example, will they give you a discount if you place your auto insurance with them as well?

Visit http://www.LowerRateQuotes.com/homeowners-insurance.html or click on the following link to get cheap contents and property insurance quotes in your area from top-rated companies and see how much you can save. You can get more renters insurance tips by checking out their “Articles” section.

You know you need renters property insurance to protect your personal property, but how can you get the best rate with a reputable company? Here’s how …

Renters Property Insurance

Renters property insurance pays to replace your personal property – furniture, clothing, electronics, etc. – when it’s stolen or damaged by fire, vandalism, or natural disasters.

It also pays claims made against you when someone injures himself or damages his property in your home, and it pays for your living expenses if your home becomes uninhabitable due to a fire or other disaster.

Save on Your Renters Property Insurance

Here are some ways to save money on your renters property insurance:

Comparison Shop

Renters property insurance can vary by hundreds of dollars from one company to another, so you need to go to an insurance comparison website to get rate quotes from different companies (see link below). Compare quotes from at least three companies then choose the cheapest quote that provides the best insurance coverage.

Increase Your Deductible

The deductible is the amount of money you pay toward a claim before your insurance kicks in. Renters insurance deductibles start at $250. Increasing your deductible to $500 can save you up to 15% on your premiums. Increasing it to $1,000 will save you up to 25%.

Buy Your Renters and Auto Insurance From the Same Company

Most insurance companies will give a 10% to 15% discount if you buy both your renters insurance and your auto insurance from them.

Install Safety and Security Devices

Insurance companies will give you discounts if you have smoke detectors, dead bolt locks, window locks, fire extinguishers, and sprinkler systems in your home. If you don’t have these devices, ask your landlord to install them, pointing out that it’s to his benefit too.

Get Senior Discounts

If you’re 55 years or older, and retired, you can get up to a 10% discount on your renters property insurance.

Visit http://www.LowerRateQuotes.com/renters-insurance.html or click on the following link to get renters property insurance quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section.

The slowdown in the economy is causing the cost of living and unemployment to rise and this means that an increasing number of tenants are falling on harder times and are becoming unable to meet their financial commitments.

According to HomeLet one of the UK’s major Landlord and Tenant insurance providers, in 2007 HomeLet paid out £2.7 million in Rent Guarantee claims and they are anticipating a higher figure for 2008.

Landlords who don’t take out comprehensive insurance policies to protect their rental income run the risk of incurring rental arrears and even legal fees.

Another insurance provider Let Insurance Services has also recently said that the fear that the credit crunch will lead to higher premiums may deter some landlords from covering themselves against the risk of defaulting tenants even though possession claims on rented homes are rising.

This could prove to be a false economy as the lettings market has increased, but there is rising unemployment and falling rents in some areas. Philip Suter of  jml-property-insurance.co.uk has been saying for some time “Insurance is one essential you can’t afford to be without today. Whether you are a Landlord or Tenant you must make sure your possessions are properly covered and you need to go to a specialist rental insurance provider for this”.

Many Landlords and Tenants insurance policies can be arranged on line and costs for a landlord work out on average between 1.5 per cent to 3 per cent of the monthly rental income. What a lot of Landlords don’t realise of course is the fact that insurance expenditure can be offset against their income tax liability for the rental property.
Many tenants of course go out and by expensive computers, ipods, cameras and televisions and might consider taking out an extended warranty, but completely forget to actually insure them and their other possessions thinking no one will ever break and steal their belongings.

With some policies, a tenant can even take out cover against damage to the landlord’s property so if they accidentally spill coffee or wine on the carpet or settee they can claim for this instead of loosing a large junk of their deposit at the end of the tenancy.

One provider, HomeLet also has a “Landlords Portfolio” policy. This means as there are more and more landlords with several properties, they can gain advantage of having their portfolio covered at more advantageous premium.

If you have bought a holiday property or are considering doing so then you will have to give some serious thought to the holiday property insurance that you are going to need. Whether you have bought the holiday home for just yourself or whether you intend to let it in order to make an income, then there are certain things that you need to be covered for.

When looking for your mortgage and holiday property insurance then it is vital that you seek good advice. Going about it the wrong way could end up costing you hundreds of pounds – if not thousands – by not being properly insured and if the worst should happen. By far the easiest way to go is to choose a specialist broker in holiday properties. By doing so you can be assured that you will get the best and cheapest deal available to you simply because a broker knows where to look.

Along with the normal coverage that you would expect to take out when it comes to holiday property insurance it does get a little more complicated and this is another reason why you need expert advice. If you are thinking of renting out the holiday home then of course you will have some additional cover to think about such as liability. But as a general rule the types of cover you should be thinking of including in your insurance should cover for every eventuality.

When it comes to holiday property insurance you should cover the basics such as fire, flood, earthquake, lightning and storm damage. Of course the particular cover needed will depend on whether the holiday property is at home or abroad. Theft insurance will also have to be taken into consideration and this doesn’t only apply to break ins and burglars but also to cover theft by guests if you are letting the property.

If renting out the property then consideration should also be given as to taking out insurance against the possibility of losing rent from the property and also if the property should be unoccupied for any length of time. There is a lot more of course to holiday property insurance, these are just the very basics.

It is essential that you fully understand what is in the policy as with all policies there are many hidden exclusions and again this is one very good reason that you should go to a broker to get the best deal. A broker can not only give you excellent advice and find the cheapest deals but also can give you advice on the type of cover that is suitable for your needs.

State Owen, reinsurance has recently received permission to increase their rates across the entire state property insurance coverage, in some places by as much as 10%. The average rate increase across the state will be 5.4% with coastal homes paying 7.3% more than a large number of inland homes paying 10% more.

This rate increase will affect approximately one million Florida reside who rely upon Citizens for their home coverage. While previously Citizens was seen as a lower end, last resort option for most home owners today have become the largest provider of home insurance in Florida. This rate increase also comes the same time that Citizens is privatizing many of contracts that they currently hold to private insurance provider organizations in order to minimize the potential for the state government to have funding problems should a disaster occur.

While this may come as a surprise to many Florida residents as the Florida peninsula has not had any major disaster since tropical storm Wilma in 2005 the main reason for the rate increase is not to recuperate losses incurred by some recent damage but to spread out the financial burden disasters caused over a number of years. That way Citizens can be better able to provide for its customers in times of need and provide claims payouts should disasters occur.

If you’re a Citizens customer and disagree with this rate increase there are always a number of options available to you. One of the best ways to see what is out there and compare your current rates to other insurance companies is to do a simple search online for providers in your area. Using specialized insurance search engines your online searches can allow you to easily compare and contrast different quotes and policy offerings from different companies as well as get the latest information on local dealings. Searching online is something that everyone should do every time their insurance policy comes up for renewal or they file a claim in order to make sure that they are getting the best policy for the money possible. It’s your money, so don’t settle for less.

If you’re stuck and need some help finding good information online try using Ezquoteguide.com for finding the right local insurance information you need right away to help you fulfill your auto insurance needs.

It is important that you protect your property and the things that you own and one of the best ways to do this is having property insurance. There are many different types of property insurance and usually you can get this type of insurance along with your homeowners insurance. You will also save money if you get multiple insurances form one provider so make sure that you ask your agent about any discounts they may offer. You never know when your house may get robbed so you need to get insurance to protect those things that you have worked so hard to get.

Find the Best: Discount Property Insurance

You want to make sure that when you are searching for property insurance that you compare the rate that you are going to pay along with the actual policy. It is very important that your policy will cover any items that get damaged or stolen so that you can replace them. Just check the policy and see what the maximum coverages are and what they cover as far as a fire, theft, etc.

Great Advice about: Types of Insurance

Many people feel like spending money on insurance is a waste but if you find yourself in a situation where you stuff is damaged or stolen then it is just pennies because the cost to replace those items will be much higher than what the insurance is going to cost you.

You may want to also talk with an agent and ask them about the different policies and coverage that you can get. If you decide to still search online for the best price it is a good idea to get informed before you make a purchase

When looking at or thinking about your homeowner’s insurance, it can look like a pretty complicated mess.  It is helpful to realize that this insurance is actually made up of three basic parts.  One has to do with the structure itself. Another has to do with liability in case someone gets hurt or injured on your property.  The final part is property insurance that is intended to cover the contents of your home in case of loss or damage.

Personal property includes things like clothing, furniture, and appliances.  That doesn’t mean that everything in your house is automatically covered.  There are some items that may require some special attention to determine what the policies dollar limits are.  These are items such as jewelry, coins, silverware, stamps, furs and accessories.  To make sure these items are covered it may be necessary to add policy riders.  It may be wise to have your items professionally appraised in order to get an accurate dollar figure for insurance purposes.  

A good idea in regard to personal property is to compile a room by room inventory and list the approximate value of each item. This list should be kept at a location away from your home (the office or a safe-deposit box).  It might also be helpful to photograph or video tape the rooms and their contents.  This provides a visual, as well as written, record of the items covers.

If you already have existing homeowner’s insurance and have acquired new, valuable items it may be necessary to increase your coverage.  For instance televisions, cameras, computers, musical instruments and the like may require increased coverage.  

When deciding on a dollar amount for property insurance, you should think in terms of replacement value for the contents of your home.  The current value of an item may not be even close to the replacement cost.  For instance, say you own a 5 year-old washing machine.  The cash value of that appliance will have depreciated from its original cost.  The real dollar figure needed for insurance purposes is the replacement value.  In other words, what would it cost to replace this item in case of damage or loss?  So, be sure to insure for replacement cost of your personal property, not the cash value of these items.  

An important characteristic of homeowner’s insurance of which one should be aware, has to do with the exclusion of insurance for certain kinds of damage.  Specifically this pertains to flood and earthquake damage.  This certainly applies to the insurance coverage on the structure, but also to your personal property.  Special or even separate insurance coverage may be necessary.  Pay particular attention if there is a specific danger of these events where you live.

Do you need coverage for items inside our rented property. A renterâ??s property insurance can cover up property losses for those who are tenants, since home insurance possessed by landlords doesnâ??t tend to cover rentersâ?? personal property. However, rental property insurance is nothing but a landlordâ??s buy to let property insurance.

Be it rental property or renterâ??s property, the only difference in the coverage is that, renters covers those items which are owned by the renter and landlordâ??s rented property covers only those items owned by the landlord and is in use for the tenant. In other words, if a landlord has taken an insurance for his rented out property, it only means that a tenant will not have coverage for the valuables he has in a rental unit.

If you as a tenant or renter need protection for items owned by you, you should seek for a separate insurance. It is also known as apartment insurance. So far, one has read articles written to protect landlordâ??s owned content, but little does one realise that a tenant also has valuable items in his house. Protect your personal belongings, even tenants have a right to protect their belongings in a rental unit. In addition to this, it also covers financial protection to those injured at your rental property. A tenant living in that house will not be liable to pay for any injury inflicted on a guest, relative or friend who has visited his house, instead this amount will be covered by the renterâ??s insurance.

Television
Furnitures
Jewellery
Garden accessories
Computers, laptops

Other electrical appliances such as stereos, dvds, vcrâ??s, cd players, freezer, dishwasher, refrigerator, oven, stove, dry vacuum, vacuum cleaner, microwave.

In case of any disaster or untoward incident such as theft, earthquake, explosion, fire or flood, smoke, subsidence etc, your belongings will be protected by your insurance cover. Building insurance covers the external part of the building and content insurance covers items in side the house, but there are some exceptions such as garden equipments and those items which are kept outside the building or carried outside. Understand your insurance policy properly and then avail them.

If you stay some where else when your rented house is getting repaired, you will be covered accommodation expenses too. It also protects one from any liability if some one sues you for the injury caused with in your apartment or building. If the tenant is supposed to maintain the property but does not and someone is injured on the premises, it is the tenant and not the landlord who may be liable for this problem.

If you are an owner of property that is currently empty you will realise that most conventional household insurance will not offer unoccupied property insurance. So what can you do to get a cheap empty house insurance for you vacant building?

Best Tips on Unoccupied Property Insurance

As an owner of an empty property you will want to ensure that it is protected against risks such as fire, storm damage, vandalism, theft and acts of god. There are certain things you can do to minimise some risks to protect your vacant property:

• If the property does not have deadbolts and window locks fitted, try to get these security measures in place. Most insurers will usually insist on these before offering empty home insurance.
• A working burglar alarm system is a great deterrent for would be thieves. Having an alarm system with infra-red sensors and glass breakage detectors are easy to install without having to cost a lot of money.
• Probably the best security measure is giving your empty property the ‘lived-in’ look. Installing light timers, having curtains, perhaps getting your neighbour to park their car on your drive on occasions.  Also remove the mail on a regular basis.
• Also if you can visit the property on a daily basis or have the neighbour to check it on a regular basis will help in getting a better deal on your empty house insurance policy.

Tips on Cheap Unoccupied Property Insurance

I think you can assume that the cost of unoccupied property insurance will usually be higher than that of a standard home insurance. However you can reduce the cost of your vacant property insurance by:

• Increasing the standard policy excess.
• Taking out the basic cover of fire, lightening, earthquake, explosion and aircraft (and objects dropped from an aircraft)
• Comparing prices online with at least 3 different unoccupied property insurance companies. Rates can vary considerably from one insurer to the next.