Wildfires: what your home insurance covers on the Costa del Sol

Every summer, the news reminds us that wildfires on the Costa del Sol are a very real threat. The mountain areas close to Marbella, Ojén, Istán and Benahavís concentrate a risk that many homeowners underestimate… until the fire gets too close for comfort. If you own a property in this area, it is worth knowing exactly what your home insurance covers in the event of this type of claim.

Are wildfires covered by home insurance?

The short answer is: yes, but with important caveats. Most home insurance policies include fire cover, but not all of them distinguish between a fire that starts inside the property and one that arrives from outside, such as a wildfire.

Generally speaking, if flames reach your property and cause direct damage, your home insurance should respond. However, the devil is in the detail: the specific conditions of each policy can limit, exclude or extend this protection.

If you live in a residential development surrounded by scrubland or close to a forested area, reviewing your policy carefully is not optional — it is essential.

What damage is typically covered by the policy?

When a wildfire affects your home, the damage can vary considerably. Below we explain what a standard home insurance policy typically covers:

• Structural damage: walls, roof and the fabric of the building damaged or destroyed by fire.
• Home contents: furniture, appliances, clothing and personal belongings burnt or damaged by smoke.
• Smoke and soot damage: even if the flames do not enter the property, smoke can ruin paintwork, textiles and electronic equipment.
• Demolition and debris removal costs: necessary before reconstruction can begin.
• Temporary accommodation: if the property becomes uninhabitable, some policies cover the cost of a hotel or alternative accommodation.
• Loss of rental income: if you were letting the property and it becomes unusable, certain covers compensate for lost rental income.

What might not be covered?

Not everything is covered automatically. There are situations worth being aware of to avoid any nasty surprises following a claim.

The Consorcio de Compensación de Seguros (CCS) is the public body in Spain that covers so-called "extraordinary risks". Wildfires may fall under this category if they are classified as a natural catastrophe, which means that part of the compensation could come from this body rather than directly from your insurer.

However, for the CCS to intervene, your policy must include extraordinary risks cover (compulsory in the vast majority of home insurance policies) and the incident must be officially recognised as such.

Other items that may fall outside the scope of cover include:

• Damage to gardens, swimming pools or external installations not declared on the policy.
• Vehicles damaged in the garage (this is what motor insurance is for).
• Valuables not specifically declared on the policy.
• Properties left unoccupied for more than a certain number of consecutive days (this varies by insurer).

Practical advice if you live in a risk area in Marbella

The Costa del Sol enjoys a privileged microclimate, but it also experiences hot, dry summers that significantly increase the risk of fire. If your property sits in an urban-wildland interface area — those residential developments where built-up areas meet open countryside — the following advice is for you:

• Review your policy every year and confirm that the sum insured reflects the current rebuild cost of your property.
• Make sure that extraordinary risks cover (CCS) is included and active on your policy.
• Accurately declare your home contents so that any compensation is adequate.
• Keep up-to-date photos or video of your belongings stored in the cloud, away from the property.
• Ask an independent broker whether your policy includes loss-of-use cover or temporary accommodation.

An independent insurance broker such as Segurmar in Marbella can compare several insurers and identify gaps in your cover before a claim occurs — not after.