Spain in Flames: When Fire Puts Your Insurance to the Test

Is your home close to woodland? Do you run a business on the Costa del Sol that could be affected by a wildfire? This summer has once again proved something many people would rather not think about: fire can reach closer than we ever imagine.

Spain has burned with an intensity not seen for decades. Some 180,000 hectares reduced to ash, towns evacuated, and skies turned orange for weeks on end. Experts are calling it the worst start to a fire season since 1994, when the term megafire entered our vocabulary and never left.

And behind every scorched hectare, there is more than lost landscape. There are upended lives, destroyed homes, and businesses brought to a standstill.

What does your insurance cover when fire arrives?

Here is something most people do not know: wildfires are not covered by the Consorcio de Compensación de Seguros. And that changes everything.

The Consorcio is the public body that acts as a safety net when certain extraordinary disasters occur — flooding, earthquakes, tornadoes… But wildfire does not appear on that list. Which means that if the fire reaches your home or business, the protection you receive depends entirely on the policy you have in place.

That is why it is so important to review what you have signed before anything happens.

What each type of insurance can cover

A good home insurance policy covers damage to the structure of your property (the buildings) and everything inside it (the contents): furniture, appliances, clothing, and more. It may also include debris removal and — something many people are unaware of — temporary accommodation if your home is left uninhabitable.

If you own a business, commercial insurance can cover not only material damage but also loss of trading income — in other words, the revenue you lose while you are unable to open. If you would like to understand how this works in practice, we explain in detail what loss of profits cover means in a commercial insurance policy and why it is a benefit many business owners overlook.

As for your vehicle, comprehensive policies or third-party fire and theft cover will respond if fire destroys your car, even if the cause is accidental. A basic third-party only policy, however, will not cover this.

The Consorcio de Compensación de Seguros: what it is and when it acts

It is worth explaining this carefully, as it causes considerable confusion.

The Consorcio de Compensación de Seguros is a public body that functions as an insurer of last resort. When an extraordinary natural event occurs — a devastating flood, an earthquake, a volcanic eruption — and private insurers are unable or not obliged to provide cover, the Consorcio steps in.

However, it operates with a fixed list of risks it will cover. And wildfires are not on that list. The reasoning is that fire is considered a risk the private insurance market can cover, rather than an extraordinary natural catastrophe in the strict sense of the term.

The consequence is clear: if fire damages your home or business and you do not hold a policy that includes fire cover, there is no public safety net to fall back on. You are on your own.

This is precisely why, in areas such as Marbella and the wider Costa del Sol — where the boundary between residential development and woodland is so close — reviewing your cover is not optional. It is essential.

What if I live near woodland on the Costa del Sol?

The Costa del Sol has breathtaking scenery, but it also carries particular risks. Urbanisations nestled among pine forests, villas with gardens bordering open land, businesses in high-risk zones… If that describes your situation, you need to know exactly what your policy covers in the event of a wildfire.

In this article we explain in full what your home insurance covers in the event of a wildfire on the Costa del Sol and what you should review before summer arrives.

The value of having someone by your side when you need it most

Beyond the paperwork and the policy schedules, these wildfire events have taught us one clear lesson: the human element matters.

When a claim happens, you do not want to be reading through general conditions. You want someone to tell you what to do, to manage your claim with the insurer, and to guide you through the process. That is precisely what an insurance broker like Segurmar does.

We are not an app or an online form. We are people based in Marbella who know your policy, who alert you before problems arise, and who get your claim moving when you need it to.

Because the true value of insurance becomes clear at the very moment something happens that nobody wanted to happen. And having someone you trust by your side makes all the difference between facing the fire alone… or not.