Spain: Holiday & Travel Insurance

Overview

Holiday and travel insurance (seguro de viajes) is recommended for those who don’t wish to risk having their holiday or travel ruined by financial problems or to arrive home broke. As you probably know, anything can and often does go wrong with a holiday, sometimes before you even get started (particularly when you don’t have insurance). The following information applies equally to residents and non-residents, whether you’re travelling to or from Spain or within Spain. Nobody should visit Spain without travel (and health) insurance!

Travel insurance is available from many sources, including travel agents, insurance companies and agents, banks, automobile clubs and transport companies. Package holiday companies and tour operators also offer insurance policies, some of which are compulsory, too expensive and don’t usually provide adequate cover. You can also buy 24-hour accident and flight insurance at major airports, although it’s expensive and doesn’t offer the best cover. Before taking out travel insurance, carefully consider the range and level of cover you require and compare policies. Short-term holiday and travel insurance policies should include cover for holiday cancellation or interruption; missed flights; departure delay at the start and end of a holiday (a common occurrence); delayed, lost or damaged baggage; personal effects and money; medical expenses and accidents (including evacuation home); personal liability and legal expenses; flight insurance and default or bankruptcy insurance, e.g. against a tour operator or airline going bust.

Health Cover

Medical expenses are an important aspect of travel insurance and you shouldn’t rely on insurance provided by reciprocal health arrangements, charge and credit card companies, household policies or private medical insurance (unless it’s an international policy), none of which usually provide adequate cover (although you should take advantage of what they offer). The minimum medical insurance recommended by experts is €300,000 in Spain and the rest of Europe, and €1.2 million for the rest of the world (many policies have limits of between €1.8 million to €2.4 million). If applicable, check whether pregnancy related claims are covered and whether there are any restrictions for those over a certain age, e.g. 65, as travel insurance is becoming increasingly more expensive for those aged over 65.

Always check any exclusion clauses in contracts by obtaining a copy of the full policy document, as not all the relevant information is included in an insurance leaflet. High-risk sports and pursuits should be specifically covered and listed in a policy (there’s usually an additional premium). Winter sports policies are available and are more expensive than normal holiday insurance (‘dangerous’ sports are excluded from most standard policies). Third-party liability cover should be €2.4 million in North America and €1.2 million in the rest of the world. Note that this doesn’t cover you when you’re using a car or other mechanically propelled vehicle.

Cost

The cost of travel insurance varies considerably, depending on where you buy it, how long you intend to stay in Spain and your age. Generally, the longer the period covered, the cheaper the daily cost, although the maximum period covered is usually limited, e.g. six months. With some policies an excess must be paid for each claim. As a rough guide, travel insurance for Spain (and most other European countries) costs from around €35 for one week, €60 for two weeks and €100 for a month for a family of four (two adults and two children under 16). Premiums may be higher for those aged over 65.

Annual Policies

For people who travel abroad frequently, whether on business or pleasure, an annual travel policy usually provides the best value, but carefully check exactly what it includes. Many insurance companies offer annual travel policies for a premium of around €150 for an individual (the equivalent of around two months insurance with a standard travel insurance policy), which are excellent value for frequent travellers. Some insurance companies also offer an ‘emergency travel policy’ for holiday homeowners who need to travel abroad at short notice to inspect a property, e.g. after a severe storm. The cost of an annual policy may depend on the area covered, e.g. Europe, worldwide (excluding North America) and worldwide (including North America), although it doesn’t usually cover travel within your country of residence. There’s also a limit on the number of trips a year and the duration of each trip, e.g. 90 or 120 days. An annual policy is usually a good choice for owners of a holiday home in Spain who travel there frequently for relatively short periods. However, carefully check exactly what’s covered (or omitted) as an annual policy may not provide adequate cover.

© Survival Books Limited 2005

“Buying a Home in Spain 2006” 5th Edition, David Hampshire.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Spain 2006” 5th edition, by David Hampshire.

For extensive, annually updated information about buying a property in Spain, you can purchase this book at www.survivalbooks.net