Home Insurance and Occupation: What to Check in Your Policy

A policy mentioning the word "occupation" doesn't mean it will protect you in your particular case. Some guarantees only apply to your main home, others pay for the solicitor but not the damage, others require you to report it to the police within a very short deadline, and others exclude unoccupied properties, which are exactly the ones most at risk. Before you take out cover, and also if you already have insurance, it's worth reviewing the policy with a list of specific questions. Here it is, along with the three routes this protection usually comes through and the mistakes we see most often when comparing policies.

Where protection against occupation can be found

There's no single product. Depending on the insurer and the version, you'll find it in one of these places, or in none of them:

Where	What it usually provides	What's worth checking
Within home insurance	A legal expenses guarantee that, in some versions, mentions occupation	Whether it applies to your type of property and what cost limit it has
A legal expenses policy	Advice, a solicitor and a court agent (procurador) to defend your interests	Whether recovering an occupied property is among the scenarios covered
A specific guarantee or add-on	Depending on the insurer, legal assistance and some costs linked to occupation	Eligibility conditions, waiting periods, limits and exclusions

And there's a fourth product that's often confused with the ones above: rent guarantee insurance. That protects you against a tenant with a contract who stops paying, not against someone who moves in without permission. If you let out your property, you probably need to think about both risks separately.

The 12 questions to ask your policy

1. Which property is protected?

This is the first and most important question. Many guarantees are limited to the insured's main home. If what worries you is your second home, an inherited property or a flat you let out, check that it's expressly included in the specific terms.

2. Does it require the property to be furnished or have utilities connected?

Some policies require the property to be fit to live in: furnished, with water and electricity connected, or with regular visits. If your property doesn't meet those requirements, the guarantee may not apply.

3. What happens if the property is unoccupied for a long time?

Check whether there's a number of consecutive days without occupation after which the conditions change, and which guarantees are affected. Sometimes it's not just occupation cover: theft or water damage cover can be affected too. And remember that a prolonged vacancy may need to be reported to the insurer.

4. Does it cover criminal proceedings, civil proceedings, or both?

Recovering an occupied property can be done through different routes, and the solicitor will choose the one that best suits your case. Check that the policy doesn't limit cover to just one, because that shapes the whole strategy.

5. What's the cost limit, and how is it calculated?

Look at the maximum amount for solicitor's fees, the court agent (procurador) and other costs of the proceedings, and whether it applies per claim or per year. Proceedings that become complicated can drag on, and it's worth knowing how far the insurance will stretch.

6. Can you choose your own solicitor?

Ask whether you can appoint a solicitor you trust or whether you have to use the insurer's own panel, and, in the first case, up to what fee limit. This makes a real difference if you already have a solicitor who knows your situation.

7. Is there a waiting period from when you take out the policy?

Some guarantees don't apply until a certain amount of time has passed since you took them out, to stop people taking out cover once a problem is already looming. Ask whether that period exists and how long it lasts in your case. And bear in mind that they normally won't cover an occupation that had already begun when you took out the policy.

8. What deadlines does it set for reporting to the police and to the insurer?

Many policies require you to report it to the police and notify the insurer within a set period from when you find out about the occupation. Make a note of it: if you miss it, you may have trouble getting the cover to apply.

9. Does it repair the damage left by occupants?

Paying the solicitor is one thing; repairing doors, fittings and furniture is another. Check whether the policy covers vandalism caused by occupants and whether there's any exclusion for damage that happened while the property was empty. Also check that the building and its contents are insured for their real value, so you're not left short.

10. Does it include a locksmith and lock replacement?

When you recover the property, the first thing is to make sure nobody still holds keys to it. Ask whether home assistance includes an emergency locksmith and lock replacement, and whether it comes out even if you're not on the island.

11. Does it cover utilities, community fees or other costs?

While the property is occupied, water, electricity and community bills keep coming in. Some versions cover part of these costs; most don't. If this matters to you, ask for it in writing.

12. What exclusions does it have?

Read the exclusions section carefully. The most common ones relate to occupations that began before you took out the policy, people who had some kind of permission or relationship with you, properties that don't meet the requirements for use, and disputes between family members or heirs.

Three cases to see the difference

The policy that only covers the main home

Carmen has comprehensive home insurance on her flat in La Laguna, with legal expenses cover that mentions occupation. When the flat in Los Cristianos she inherited from her parents gets occupied, she discovers that property has a different policy, an old and basic one, with nothing similar. She had the protection, just on the wrong home.

The solicitor covered, the damage not

Luis recovers his second home after several months. The policy paid for the proceedings, but excluded damage caused while the property had been unoccupied for more than a set number of days. The repairs came out of his own pocket.

The guarantee taken out in good time

Marta reviewed her policy before leaving her flat empty to move for work. She reported the change to the insurer, adjusted the version of the policy to include an unoccupied home, and noted down the reporting deadlines. If anything ever happens, she knows exactly what to do and what to expect.

Common mistakes when comparing

• Trusting the commercial name. Two guarantees with similar names can cover very different things. What counts is the wording of the policy.
• Comparing on price alone. A cheaper policy that excludes your second home offers you no protection at all.
• Not reading the exclusions. This is the part with the most surprises, and the one people read the least.
• Forgetting your other policies. If you have several properties, review all of them, not just your main one.
• Confusing occupation with non-payment. If there's a contract, it's a different risk and a different policy.

How to ask for the information without getting lost

When you speak to your insurer or your broker, ask for the answers in writing and referring to your specific property, not in general terms. A sentence like "the occupation guarantee applies to the property at such-and-such an address, which is a second home, with a limit of this amount and these exclusions" is worth more than any brochure. And if you're comparing several insurers, put them in the same table against the twelve questions: you'll quickly see which one fits. That's exactly what we do in our personalised comparison.

If your property is going to stand empty for a while, round off the review with the measures in how to prevent the occupation of an empty home, and if you'd like to understand what the police will tell you on the day you need them, read trespass or unlawful occupation.

How we help you at Retuerto y Asociados

Send us your policies and we'll get back to you with the twelve answers in writing, property by property. If there are gaps, we compare alternatives from several insurers for you and explain what each one covers and what it leaves out. You'll find more information on our protection against illegal occupation page, and you can ask us for a review through free quote or contact us.