Should I contract an insurance policy to protect my assets in Spain?

Yes, you should. If your property is mortgaged the bank will require you to do so.

A standard insurance policy for an apartment worth about €300,000 with contents valued at €48,000 costs in the region of €280 a year.

In an apartment block or housing complex the residents’ association (Comunidad de Propietarios) is required to insure the whole property for the cost of rebuilding. However, it is always advisable to also take out your own buildings insurance in case the Comunidad de Propietarios insurance is not comprehensive. For a villa with a rebuild value of approximately €500,000 and contents worth €180,000, the insurance premium would be about €1,550.