Floods in Spain: how the Consorcio de Compensación de Seguros pays out

Short answer: damage from an extraordinary flood (like the October 2024 DANA in Valencia) isn’t paid by your insurer but by the Consorcio de Compensación de Seguros, a Spanish public body. However, it only pays people who have an active insurance policy: home, building community, business or vehicle. That’s why you should never let your insurance lapse. Here’s what it covers and how to claim.

What the Consorcio is

It’s a public body under Spain’s Ministry of Economy that covers extraordinary risks: catastrophes too large for ordinary insurers to absorb. It’s funded by a small surcharge included in many insurance premiums, usually without people noticing.

Extraordinary risks include, among others:

• Extraordinary floods, including those caused by torrential rain or rivers and ravines overflowing.
• Coastal storm surges.
• Extraordinary winds, earthquakes and other very intense natural events.

Who is entitled to compensation

You’re entitled if, at the time of the event, you had an active policy in a type of insurance that includes this cover. The most common:

• Home insurance (building and/or contents).
• Building community insurance, for shared areas.
• Business insurance for shops, offices, warehouses and industry.
• Vehicle insurance, generally even with only compulsory cover.
• Life and accident insurance, for personal injury.

Without insurance, the Consorcio doesn’t pay. If you live in an area exposed to torrential rain, the most important thing you can do is keep your insurance active and properly set up.

How to claim, step by step

1. Safety first. Don’t go back into a flooded home or garage until authorities say it’s safe.
2. Document everything. Photos and videos of every room, the water level reached, furniture, appliances and your vehicle. The more, the better.
3. Gather your policy details: insurer, policy number and, if you have it, the last paid receipt.
4. File the claim. You can do it directly through the Consorcio’s website or phone line, or through your insurer or advisor, who can handle it for you.
5. List the damage: what was ruined, approximate value and any invoices or receipts you have.
6. Meet the assessor. The Consorcio sends an assessor (perito) to value the damage. Have your photos and list ready.
7. Keep receipts for urgent costs (cleaning, pumping water, temporary accommodation) in case your policy covers them.

Mistakes to avoid

• Throwing everything away before documenting it. Understandable, but without evidence the valuation is harder.
• Assuming you’re not entitled because “it’s nobody’s fault”. That’s exactly what the Consorcio is for.
• Being underinsured. If your home or contents are insured for less than their real value, the payout can be reduced.
• Letting the policy lapse. One unpaid premium can leave you uncovered when you need it most.

Before the next storm

• Check your home insurance is active and reflects the real value of building and contents.
• If you run a business, check stock and loss-of-income cover too.
• Keep up-to-date photos of your home and valuables, and important receipts in the cloud.
• If your garage is at ground level or underground, plan where to move your car when there’s a red alert.

In short

In an extraordinary flood, the Consorcio de Compensación de Seguros pays people who are insured. The key is having an active, properly set-up policy and documenting the damage from the first moment.

I’m an English-speaking insurance advisor in Valencia. I can review your home, building or business insurance to make sure you’re properly covered, and help you with any claim.

Specific cover conditions, deductibles and deadlines depend on the Consorcio’s rules and your policy. Always check the official information on the Consorcio de Compensación de Seguros website.