Is a building insurance mandatory with a Spanish mortgage?

Taking out home insurance

Yes. The property should always be individually insured and the bank should be the beneficiary on the policy. Even if you purchase or own a flat and it is insured through the Owners' Association, you should take out separate insurance for the property. We recommend that you take out property insurance with the Spanish bank providing the finance, as they also have an interest in the property being in good condition.

In addition, a Spanish bank often provides discounts on mortgage interest rates when taking out additional products such as home insurance. We recommend you ask about this when you request a mortgage quote.