Frequently Asked Questions
What insurance is mandatory for passive residents in Andorra?
Passive residents in Andorra are those who live in the country but do not work there. Unlike active residents, they do not have access to Andorran social security. Therefore, it is an essential requirement that they have the following insurance:
- Medical insurance: coverage of all medical expenses in Andorra (CASS rate) and in approved centres in Spain.
- Disability and old-age insurance: coverage in the event of total disability and a savings policy redeemable over 5 years.
Note: Minors and those over 60 years of age only need medical insurance.
What are the requirements to apply for passive residency in Andorra?
In order to apply for passive residence, in accordance with current legislation, the following requirements must be met:
- Minimum investment of €400,000 in the country.
- Live in the country at least 90 days a year.
- Bail at the Andorran Financial Authority (AFA) for an amount of 50,000 euros. In addition, the holder must also deposit the amount of 10,000 euros for each of the people in his/her care (partner, children, etc.)
- Certificate of criminal record without negative records.
- Certificate proving that you have a home in Andorra (purchase or rental)
- Certificate of medical insurance and disability or old age.
- Have a medical check-up.
Demonstrate that your income exceeds 300% of the minimum wage in Andorra, plus an additional 100% for each dependent (partner, children, etc.).
What insurance is mandatory for a rental apartment or property in Andorra?
Home insurance is mandatory for both tenants and owners in Andorra.
For tenants
- Liability insurance: essential coverage for any tenant.
- Contents coverage: Highly recommended, especially if you own furniture, high-end appliances, jewelry or valuables.
- Building coverage: ensuring a minimum amount of capital to cover possible damages, such as those caused by water, and to protect against claims from the owner.
For owners
- Building insurance: mandatory to protect the structure of the property.
- Contents insurance: covers the property inside the home and complements the community of owners’ policy.
- Civil liability insurance: protects against possible claims for damages to third parties.
- Renovation coverage: important for covering home improvement works.
Recommendations
- Accurate assessment: adjusting the value of the content and container to reality.
- Policy details: include all assets you wish to insured.
- Accurate description: Describe the features of the home accurately.
Not just the price: consider the balance between savings and adequate coverage to be truly protected.
Is it necessary to have insurance for my second home?
Yes, it is important to have insurance for your second home, even if it is left empty for long periods of time. Being uninhabited for long periods increases the risk of theft and breakdowns such as electrical faults, water leaks or storm damage. Home insurance can cover these incidents and provide peace of mind.
Consider the characteristics of your property, such as whether it has a swimming pool or is an apartment in a residential area. The location is also crucial: if it is isolated or facing the sea, make sure your insurance covers theft and properly assess the value of the building and contents.
What coverages are important in second home insurance?
It is essential that it covers damage from water, fire, explosions, smoke, atmospheric phenomena, theft and spoliation. Also, consider increasing the limits of certain guarantees, such as theft of money from a safe, jewelry in the home and reconstruction of the garden in the case of a villa. When choosing an insurance, be sure to evaluate what specific aspects of your property you need to protect.
How to calculate the contents and building correctly to insure a home, property or SME?
The building stock refers to the value of the structure of the property. That is, the cost of rebuilding walls, ceilings, floors and fixtures after a major disaster. An easy way to visualize this is to imagine your home upside down; the building stock is everything that would not fall down: walls, ceilings, floors, doors, windows, fences, garage and storage room. For a single-family home, multiply the square footage by the construction cost.
Contents include all the items that would fall out if the house were turned upside down. To calculate this, make a detailed inventory of your belongings, considering the value of furniture, appliances, jewelry and other valuables.
I have suffered an accident, what now? Claim processing with your insurance company
- Ensure your safety and that of others: The first thing to do is to check for injuries and call emergency services if necessary.
- Collect and document the information:
- Exchange data: Get the contact and insurance information of the other drivers involved.
- Take photos: Photograph the damage to the vehicles, the position of the cars on the road, and any other relevant evidence of the accident.
- Witnesses: If there are witnesses, take their contact information.
- Complete the accident report: fill out the friendly accident report with the other driver, detailing what happened and having both of you sign it.
- Contact your insurance company: report the incident as soon as possible. You can do so by phone, through their website or through their app.
- Sending documentation: send the accident report and any other relevant documentation (photos, witness details) to your insurer.
- Assessment of the loss: an insurance expert can assess the damage to the vehicle and determine the corresponding compensation.
- Resolution and payment: Once the claim has been assessed, your insurer will inform you of the resolution and will proceed with payment or repair of the vehicle as covered by your policy.
- Follow-up: Stay in touch with your insurer throughout the process and follow any additional instructions to ensure a quick and efficient processing.
What to do if the other party is not insured or does not have the papers at hand?
- Call your insurance company and inform them of the situation, they will take care of processing everything through the police.
- Complete and sign the Friendly Accident Declaration (DAA) with the other driver.
What is the Friendly Accident Declaration (DAA)?
The DAA speeds up the processing of material damages in traffic accidents. It is received together with the car or motorcycle insurance policy.
Recommendations for completing the DAA
- Write clearly and in capital letters.
- Please fill in as much information as possible.
- Pay special attention to the central column that determines the circumstances of the accident.
- Note down the details of any witnesses, if any.
- If there are injuries or more vehicles involved, fill out the corresponding section.
- Draw a sketch of the accident.
- Sign the document and make sure the other driver does too. The original is for your insurance company.
What to do in the event of an accident at home, business or store?
- Contact your insurance company as soon as possible.
- Provide photos of the accident, if possible.
- The insurer will determine whether it is necessary to send an expert or repairer and will advise you on the steps to follow.
What should be taken into account in the event of an accident?
- Water damage claims
- Immediate contact: Call your insurance company immediately to assess the situation and determine the next steps.
- Urgent repair: In serious cases, contact a repairman or the 24-hour assistance service indicated in your policy before notifying the insurer.
- Repair invoices: Keep all repair invoices to avoid problems with third-party collateral damage coverage.
- Health claims and subsidies
- Original documentation: In the event of a work-related accident, present the original documents (injury report and proof of sick leave) and medical expense invoices.
- CASS Supplement: CASS automatically transfers medical reports and medical expenses to the insurer. No additional documents need to be submitted unless requested by the insurer.
- Subsidy: always present the originals of the discharge and any extension issued.
- Recommendations for contracting policies
- Understand the coverage: Make sure you are fully aware of the coverage you are purchasing so that the compensation meets your expectations and needs.
- Good coverage: When it comes to health, choose products with adequate coverage, regardless of the cost. Sometimes, cheap can be expensive.
- Basic information in case of accident
- Insured data: name and contact information.
- Policy details: policy number and contract details.
- Description of the incident: date, location and details of the incident, including photographs if possible.
- Third party data: information about the other party and their insurance company, if applicable.
Why has my insurance gone up this year?
The annual increase in insurance premiums is due to several factors, such as inflation (CPI) and accidents. Before renewal, it is advisable to contact your insurance company to find out the new premium and avoid surprises. This will also give you time to request a review if necessary.