Differences in Community Liability insurance between Spain and the UK.

Welcome to our article on the differences between civil liability insurance for neighborhood communities in Spain and the United Kingdom. 

Many of the owners who come to Meridional show interest in knowing the differences in coverage or concepts between the insurance policies that they know from their countries of origin versus those that are handled in Spain and that is why we We decided to make this article.

Today we will rely on the knowledge of Coseba, the insurance brokerage that represents the best insurance companies in Spain, and with a history of 35 years providing advice, to tell us the similarities and differences between civil liability insurance for communities of neighbors in Spain and the United Kingdom.

Introduction

When comparing the landscape of third-party liability insurance in Spain and the United Kingdom, it is important to start by highlighting the main differences between these two countries. Despite many similarities, there are crucial distinctions when it comes to legal requirements, coverage, and policy specifics. 

In the following points, we will outline these disparities between Spanish and British community liability insurance policies for better understanding.

Legal requirements for Civil Liability insurance

In Spain:

In Spain, the Horizontal Property Law regulates the rights and responsibilities of owners within a community of neighbors. Although this law does not specifically impose civil liability insurance for communities, it does encourage it by establishing that the community must take out an insurance policy to cover possible damage to common areas and civil liability. For this reason, it is common practice for Spanish communities to have civil liability insurance.

Civil Liability covers claims that the community may suffer, both inside and outside the facilities, as long as they are attributable to it.

Let's give an example: Let's imagine that a neighbor throws an object out of the window and it hits a pedestrian who is walking down the street or who is simply outside the community; since the responsibility falls exclusively on that neighboring neighbor. Now, if, for example, a piece of rubble falls off the façade due to lack of maintenance or a similar reason, the civil liability insurance of the neighborhood community would be responsible.

In the United Kingdom:

In the United Kingdom there is no specific law that requires residential communities to have civil liability insurance. However, under the Occupiers' Liability Acts of 1957 and 1984, owners and occupiers have a duty of care to visitors on their premises. To protect themselves from possible legal claims, communities often choose to take out civil liability insurance.

Civil Liability Insurance Coverage

In Spain:

In Spain, civil liability insurance for neighborhood communities usually covers damage caused to third parties within the common areas of community property. This includes damage resulting from accidents, negligence or inadequate maintenance of common spaces. Coverage usually extends to property damage, bodily injury and legal defense expenses.

In the United Kingdom:

In the UK, condominium liability insurance, often referred to as “public liability insurance”, typically covers damage caused to third parties within the common areas of the property. As in Spain, this includes property damage, bodily injury and legal defense expenses. Additionally, UK policies may also offer employers' liability insurance, which covers claims from employees or contractors working for the community.

Limits and exclusions of the Civil Liability insurance policy

In Spain:

In Spain, liability insurance policies usually have a specified limit, which represents the maximum amount the insurer will pay for a single claim or in a policy period. The usual limits range between 150,000 and 1,500,000 euros. Exclusions may include claims arising from criminal acts, intentional torts or contractual liabilities.

United Kingdom:

In the UK, public liability insurance policies also have specific limits, typically ranging from £1,000,000 to £10,000,000. Exclusions are similar to those in Spain, with criminal acts, intentional damage and contractual liabilities often excluded from coverage.

Civil Liability Insurance Claim Procedures

In Spain:

In the event of an accident, the Spanish communities must notify their insurer as soon as possible, providing all the relevant information and documentation. The insurer will evaluate the claim and determine if it falls within the policy coverage. If the claim is accepted, the insurer will take care of the legal defense and will compensate the community up to the policy limit.

In the United Kingdom:

As in Spain, British communities must quickly notify their insurer in the event of an accident, providing all the necessary information and documentation. The insurer will evaluate the claim and, if accepted, will take care of the legal defense and compensate the community up to the policy limit.

Differences between civil liability insurance for neighboring communities in Spain and in other countries of the European Union

It is true that in general terms, the differences in civil liability insurance for neighboring communities in the countries of the European Union are not very great. Most policies offer similar coverage, such as protection against material damage, personal injury, and economic losses caused to third parties.

However, the main differences lie in the specific legislation and regulation of each country, as well as the obligation to contract civil liability insurance for neighboring communities. In some countries, such as Spain and France, it is mandatory to have this type of insurance, while in others, such as Germany, Italy and Portugal, it is not mandatory, although it is highly recommended.

Additionally, compensation limits and premiums may vary by country, local laws, and building characteristics. Therefore, although the differences may not be very significant in terms of basic coverage, it is important that homeowner associations in each country are aware of their legal obligations and the insurance options available to adequately protect themselves.

Conclusion:

Although there are some differences in legal requirements and terminology between community liability insurance in Spain and the UK, the basic principles of cover, policy limits, exclusions and claims procedures are largely similar. 

Both countries encourage communities to take out civil liability insurance to protect themselves from possible legal claims arising from accidents or negligence in common areas.

Trust Meridional

Understanding the nuances of community liability insurance in Spain and the UK is vital to making well-informed decisions that provide the best protection for your community. 

To ensure you receive personalized advice and guidance, we encourage you to contact our Southern office. Their team of experts is ready and eager to help you find the most appropriate insurance solutions for your neighborhood community. 

Do not hesitate to request a free, no-obligation quote, and discover the best coverage options available to safeguard the interests of your community. Let Meridional help you navigate the complexities of liability insurance, providing you with the peace of mind you deserve.

At Meridional we strive to provide our clients with accurate and relevant information, ensuring that they make informed decisions when choosing the insurance policies that best suit their needs.

Frequently asked questions

Below you will find a list of frequently asked questions (FAQ) about Civil Liability Insurance for neighborhood communities along with their answers:

Q: Is civil liability insurance mandatory for neighborhood communities in Spain?

A: Although civil liability insurance is not explicitly mandatory in Spanish legislation, the Horizontal Property Law encourages communities to take out an insurance policy to cover possible damage to common areas and civil liability. For this reason, it is common practice for communities in Spain to have civil liability insurance.

Q: What does a typical community liability insurance policy cover?

A: A standard policy usually covers damage caused to third parties within the common areas of the community property, such as property damage, bodily injury, and legal defense expenses.

Q: What are the typical exclusions in a community liability insurance policy?

A: Exclusions typically include claims arising from criminal acts, intentional damage, contractual liabilities and incidents involving community-owned motor vehicles, vessels or aircraft.

Q: How are civil liability insurance premiums calculated for neighborhood associations?

A: Premiums are typically based on factors such as the size of the community, number of properties, location, level of coverage, and the community's claims history.

Q: Can the liability insurance policy be tailored to the specific needs of our community?

A: Yes, many insurers offer customizable policies that can be tailored to the unique characteristics and requirements of your community, including additional coverages, higher policy limits, and specific risk mitigation measures.

Q: What is the difference between public liability insurance and employer's liability insurance?

A: Civil liability insurance covers claims arising from damage caused to third parties within the common areas of the community property. Employer liability insurance, on the other hand, covers claims from employees or contractors who work for the community and who suffer injuries or illnesses as a result of their work.

Q: How do I file a claim in the event of an accident?

A: To file a claim, notify your insurer as soon as possible, providing all relevant information and documentation. The insurer will evaluate the incident and, if accepted, will take care of the legal defense and compensate the community up to the policy limit.

Q: Can our community get a discount on our liability insurance premiums?

A: Some insurers may offer discounts or incentives to communities that implement risk prevention measures, maintain a good claims history, or bundle their liability insurance with other types of insurance policies.

Q: How often should we review our community liability insurance policy?

A: It is advisable to review the policy annually or whenever significant changes occur in the community, such as renovations to common areas or changes in the legal structure of the community.

Q: How can we find the best civil liability insurance policy for our community of neighbors in Spain?

A: Working with an insurance broker like Coseba and a trusted insurance consultant, like Meridional, can help you navigate the complexities of the insurance market, get competitive quotes, and find the policy that best fits the needs of your community. .