With concerns over illegal occupation continuing to worry homeowners in Spain, a growing number of insurers now offer specialist ‘anti-squatter’ policies.
While they won’t physically stop someone from entering your home, they can help cover the often substantial legal and recovery costs involved in getting your property back.
What is anti-squatter insurance?
Anti-squatter insurance is a specialist policy that protects homeowners against some of the costs arising from the illegal occupation of their property.
Depending on the insurer, cover may include legal fees, damage caused by occupiers and some of the costs involved in regaining possession of the home.
It is particularly popular among owners of second homes, holiday properties and those that remain empty for long periods.
What does it typically cover?
Policies vary between insurers, but many offer protection including:
- Legal representation during eviction proceedings
- Court costs and legal expenses
- Costs associated with removing illegal occupiers
- Compensation for damage caused during the occupation
- Assistance from specialist legal advisers
- In some cases, cover for administrative fines linked to the occupation
For example, one policy offered by legal insurer ARAG through Idealista includes up to:
- €2,000 towards eviction-related expenses
- €12,000 in legal defence costs
- €12,000 to pursue claims for damages
- €6,000 to repair damage to the building itself
- Legal advice by telephone and online throughout the process
How much does it cost?
Prices depend on the insurer and level of cover, but some policies start at under €40 per year for both a main residence and a second home.
Higher-value properties or more comprehensive cover may cost more.
Is it the same as rent guarantee insurance?
No. The two policies protect against completely different situations.
Rent guarantee insurance covers landlords when a tenant with a valid tenancy agreement stops paying rent.
Anti-squatter insurance applies when people occupy a property illegally without any rental contract.
Is it worth taking out?
Whether it’s worthwhile depends largely on the type of property you own.
Owners of holiday homes or properties left empty for long periods may find the relatively low annual premium worthwhile, particularly given that legal proceedings and repairs following an illegal occupation can quickly become expensive.
However, homeowners should always read the small print carefully before taking out a policy.
Experts recommend comparing:
- Maximum legal cover
- Damage limits
- Waiting periods before cover begins
- Policy exclusions
- Additional legal support services
- Any limits on eviction-related expenses
As with any insurance policy, anti-squatter cover won’t prevent illegal occupation from occurring, but it can help reduce the financial and legal burden of recovering your property if it does happen.
