The short answer: Spanish home insurance does not cover your gold just because it is in your home. It depends on the policy, and many set a low limit for jewellery and valuables, ask you to declare them or require a safe. And if there is a theft, it is up to you to prove the gold existed and what it was worth. The safe move is to ask your insurer in writing and keep your invoices.
In this article
What Spanish home policies usually say
No rule in Spain says how much gold a home policy must cover: each insurer sets it. In practice, though, these conditions keep turning up:
- A separate limit for jewellery and valuables, inside the contents cover. Even with high contents cover, the jewellery part is usually far smaller.
- A duty to declare valuables above a certain amount, sometimes with a list or a valuation.
- A safe requirement for theft of those items, sometimes with conditions on how it is fixed or certified.
- Different treatment for burglary and simple theft. Many policies cover theft with force or violence better than theft without it (for example, someone walking in through an open door, or a person you trusted).
And almost no policy makes clear whether a gold bar or a bullion coin counts as "jewellery" or a "valuable". It is worth asking.
What the law actually says
The ground rules are in Spain's Insurance Contract Act (Ley 50/1980 de Contrato de Seguro).
Limiting clauses must be highlighted and signed
Clauses that restrict your rights must be specially highlighted and specifically accepted in writing (article 3). The policy must also highlight in print the exclusions and limits that apply to each cover (article 8). Clauses that only define the risk or the sum insured do not need that signature, and which type a clause is depends on the policy. If the valuables limit cuts your rights, is buried in small print and you never signed it, you may have room to challenge it.
You must disclose the risk, and say if it goes up
Before signing, you must answer the insurer's questionnaire truthfully (article 10). If you hide something, the payout is reduced, and with intent or gross negligence nothing is paid. If the declared risk increases during the contract, tell the insurer as soon as you can (article 11); otherwise the payout is reduced or, in bad faith, lost (article 12). If the questionnaire asked about valuables and you have since bought a lot more gold, the careful thing is to tell them.
In a fire, precious metals are excluded unless agreed
Under fire cover, unless expressly agreed, damage to "precious stones and metals" and other valuables kept in the home is not covered (article 46).
Theft, with its exceptions
Theft cover pays for the unlawful taking of the insured items by third parties (article 50). The insurer pays the value of what was taken if it is not found within the period set in the contract, plus the damage caused by the crime (article 51). Unless agreed otherwise, it does not pay if there was gross negligence by you or the people you live with, or if the items were taken from somewhere other than the place described in the policy (article 52). If the gold turns up after you are paid, the law sets out whether you get it back or keep the payout (article 53).
Insure too little, get paid too little
This is the proportional rule (underinsurance). If on the day of the loss the sum insured is lower than the real value of what is insured, the insurer pays the damage in the same proportion (article 30). For example: if your contents are worth twice the amount you insured, you will get half of the damage, even for a small theft. The rule can be excluded by agreement, and the policy can also include a mechanism to update the sum insured (article 29).
If you are burgled: deadlines and proof
- 7 days to report the loss to the insurer from when you find out, unless the policy gives longer (article 16). If you do not, they can claim damages caused by the delay.
- 5 more days to send a written list of what was there, what was saved and your estimate of the damage (article 38).
- You prove the gold existed. The burden of proof is on you (article 38). Invoices in your name, certificates and photos carry the most weight. If you reasonably cannot provide better evidence, what the policy says is presumed in your favour.
- Value is taken just before the loss (article 26), not what you paid. With gold, that can work for or against you depending on the price that day.
- 2 years to take legal action under a property insurance policy (article 23).
Report the theft to the police as soon as possible. Without a police report, almost no insurer will open the claim.
What to do now, before anything happens
1. Read the specific conditions
Look for the contents sum insured, the limit for jewellery and valuables, whether a safe is required and how simple theft is handled (in the condiciones particulares).
2. Ask in writing
Email your insurer or broker: "I keep gold bars and coins worth roughly this much. Are they covered? As jewellery, as valuables or not at all? For burglary, simple theft and fire?" Keep the reply.
3. Declare the value and keep the evidence
Declare the metal if asked. Keep the invoices, the certificate for each piece and photos showing the serial number, stored away from home or in the cloud. They also help with the Spanish tax office, as we explain in gold at home: do I have to declare it?.
4. Consider specific cover or a safe
If your policy limit falls short, you can raise it, take out specific cover for valuables or agree a fixed value (an agreed value policy, article 28). A certified safe that is properly fixed is often a condition for higher cover.
5. Review the sum when gold goes up
If the price rises and the policy stays the same, you drift into underinsurance without noticing.
The alternative: keep the gold out of the house
The options, with their pros and cons, are in where to store physical gold.
At Equus Capital we are SilverGold's official consultants in Valencia. When a client buys through SilverGold, they sign the contract in their own name, the metal is identified in their name (SilverGold sends an annex listing the pieces) and it is held in Loomis vaults, insured and in their name. If they prefer, they can ask for it to be delivered. We do not sell or store gold: we advise. Before choosing storage, check whether the metal is really yours: we explain it in is the gold you buy really yours?.
Common mistakes
- Assuming "contents" includes your gold without checking the valuables limit.
- Not keeping invoices. Without proof it existed, a theft is very hard to recover.
- Not updating the sum insured after buying more or after the price goes up.
When to get help
When the metal at home keeps you up at night, when your insurer will not give you a clear answer, when you have inherited gold with no paperwork, or when a claim has been turned down. If it is turned down, you first complain to the insurer's customer service department and then you can go to Spain's Directorate General of Insurance (DGSFP).
Frequently asked questions
Does Spanish home insurance cover gold bars?
It depends on the policy. Many treat them as jewellery or valuables with their own limit, and may require you to declare them or keep a safe. Ask your insurer in writing.
Is gold covered if there is a fire?
Only if the policy expressly says so. Without that, the law leaves precious metals out of fire cover (article 46).
How long do I have to report a theft to my insurer?
Seven days from when you find out, unless the policy gives longer (article 16), and five more days to send a written list of what was taken (article 38).
What happens if I have more gold than I insured?
The proportional rule applies: if the sum insured is lower than the real value, you are paid the damage in the same proportion (article 30), unless the policy excludes that rule.
How do I prove I had the gold?
The burden is on you (article 38). The most useful evidence is invoices in your name, certificates for each piece and photos showing the serial number. If you reasonably cannot provide better evidence, what the policy says is presumed in your favour.