Concern about squatting in Spain has increased considerably in recent times. It is estimated that, on average, 46 squats will occur per day during 2022. In view of this situation, some insurance companies have developed specific products to cover the consequences of squatting.
Before reading on, if you want some tips on how to avoid squatters, click here.
What does anti-squatter insurance usually cover?
These are some of the most common types of anti-coup insurance coverage:
Legal aid service, both to claim against squatters and to negotiate with them in some cases.
They may include damage claims up to a limit stated in the policy.
Re-housing service, paying hotel or similar expenses up to the limit of the policy.
Compensation for consumption in the squatters’ home (water, electricity, gas).
After the homeowner’s repossession they include changing locks, cleaning or painting, i.e. repairing possible damage.
Civil liability for damage caused by the occupants to neighbours.
This is a summary of the most common coverages of this type of insurance that seek to minimise the consequences of an occupation.
Is it worth taking out anti-squatting insurance in Spain?
Well, the answer depends on the case, i.e., anti-coup insurance protects us against 4 or 5 specific claims and with very restrictive clauses in most cases, which is why in our opinion anti-coup insurance is hardly usable insurance, which is why we are not very favourable to this type of product.
However, the answer to this question depends to a large extent on the premium, i.e. the price of the insurance. If it is sold as an extra guarantee with a reduced annual cost within a home insurance policy, it may be a good option to take out this type of product, but if it is sold as an independent product with a high premium, we do not recommend it at all.
Current legislation protects squatters in dwellings where it is difficult to prove their use, which is why until the law changes or these products evolve, it will be difficult to prevent squatting.