A complete and well-dimensioned home insurance is as important as the alarm itself. In luxury homes, standard policies are insufficient. This guide analyzes which coverages are essential in Mallorca and how to choose the right insurance to protect your investment.
Essential coverages
1. Building (structure)
- What it covers: Walls, roof, fixed installations
- Insured capital: Total reconstruction value (not market value)
- Calculation: €800-1,200/m² in Mallorca (quality villa)
- Example: 200 m² villa = insure €160,000-240,000 building
- Underinsurance: If declare less, proportional compensation
2. Contents (furniture and objects)
- What it covers: Furniture, appliances, clothing, personal objects
- Recommended capital: 30-50% of building value
- Example: €50,000-100,000 for well-furnished villa
- Valuable objects: Declare art, jewelry, electronics >€3,000 individually
3. Liability
- Minimum capital: €300,000 (standard)
- Recommended luxury: €600,000-1,200,000
- What it covers: Damage to third parties caused by your home (tree fall, neighbor flooding, etc.)
- Differential cost: +€50-100/year for higher capital
4. Water damage
- Broad coverage: Pipe breakage, filtrations, flooding
- Critical in Mallorca: Occasional torrential rains
- Include: Leak location and repair (thermography)
- Typical deductible: €150-300 per claim
5. Weather phenomena
- Wind: Roof damage, tree falls, glass breakage
- Rain/flooding: Especially important in low areas
- Hail: Car damage, awnings, pergolas
- Lightning: Surges, fire
6. Burglary
- Contents capital: Already included in coverage 2
- Garden theft: Exterior furniture, tools (limit ~€3,000)
- Requirements: Most demand alarm connected to central
Optional coverages (highly recommended)
24-hour assistance
- Includes: Plumber, electrician, emergency locksmith
- Cost: +€30-50/year
- Limit: Typically €300-600 per intervention
- Essential if: Don't live in house year-round
Travel assistance
- What it covers: House surveillance while traveling, incident alerts
- Service: Company dispatches if alarm goes off
Legal defense
- Coverage: €3,000-9,000 legal expenses
- Situations: Neighbor disputes, community, nearby works
- Cost: +€20-40/year
Specific luxury villa coverages
All-risk valuable objects
- For what: Art, jewelry, collections, high-end electronics
- Requirement: Professional appraisal + photos
- Coverage: Theft, accidental breakage, transport damage
- Premium: 0.5-1.5% object value/year
Insurance company comparison
AXA / Zurich (premium range)
- Profile: Properties >€800,000
- Indicative premium: €600-1,200/year (€1.2M villa)
- Advantages: High capitals, fast processing, wide expert networks
Mapfre / Allianz (value for money)
- Profile: Properties €400,000-1,000,000
- Indicative premium: €400-800/year
- Advantages: Good coverage/price ratio
Tips to choose and save
Compare before contracting
- Request 3-4 quotes minimum
- Compare coverages, not just price
- Read exclusions well (fine print)
Ways to reduce premium
- Connected alarm: 10-20% discount
- Pay annually: 5-10% savings vs installments
- No claims 3 years: 10-15% bonus
- Bundle insurance: Home + car + life = 15-25% discount
Conclusion: invest in peace of mind
Good home insurance for villa in Mallorca costs 0.3-0.5% of property value annually. For €1.2M villa, we're talking €400-800/year. It's not an expense, it's investment in peace of mind protecting you from potential losses of tens of thousands of euros.
Interested in Alcudia Luz?
Alcudia Luz informs you about the best insurance policies for your investment.