Since October 8, Royal Decree-Law 29/2026 expressly states that the tenant cannot be required to contract non-payment insurance for rent or other similar coverages.
Some courts had already annulled clauses that imposed it as abusive, but now the prohibition is expressly included in Article 36.5 of the Urban Leases Law.
The regulation, pending validation by the Permanent Deputation of Congress, arrives with landlords on alert: 70% prioritize minimizing non-payment risks and legal conflicts over maximizing the profitability of their rental property, according to data from the Spanish Society of Guaranteed Rentals (SEAG).
More than 60% of landlords have tightened the conditions for accessing their property in the last year and around 50% have rejected profiles due to doubts about their solvency or economic stability, according to SEAG.
Furthermore, approximately one in three small landlords are considering abandoning traditional rentals due to fear of lengthy processes to recover the property or of default. Daniela Salinas, director of the Legal Department of SEAG, warns that the result is "an increasingly exclusionary market, with less housing available."
With the reform, the landlord who wishes to protect themselves from non-payment must contract and pay for non-payment insurance themselves. In addition to the legal deposit, only an additional guarantee of up to two monthly payments is allowed for habitual residence (one for seasonal rentals).
In home insurance, the usual breakdown is as follows: the landlord insures the structure (building and installations) and their civil liability, and the tenant insures their contents and their civil liability. Vandalism by the tenant is usually excluded from the tenant's policy and is covered by the landlord, normally with an annual limit and deductible.
"In the contract, it can be requested that the tenant insure the contents and that the landlord insure the structure," explains Arantxa Goenaga, a lawyer specializing in real estate law and a professor at ESADE and UOC.
"The most convenient way to avoid problems is for both insurances to be with the same company and to include vandalism. The landlord usually includes it, and it is not in the tenant's insurance," adds the lawyer.
With the reform, he points out, the non-payment insurance must be borne by the landlord: "The best thing is for the owner to take it out directly. This represents an expense for him, but he can deduct it from the rent as an expense related to the property."
"With the reform, the owner is the one who must secure his rental: whoever rents without reviewing their policy assumes a risk that can cost them much more than the premium. The owner's insurance protects the structure and the tenant's protects the contents and their civil liability, and when each party has their own well-insured, most conflicts after a claim are avoided," states José Manuel Sánchez Trallero, director of Master Mutua.
"The fear of damage is understandable and there are coverages that mitigate it. As brokers, we review limits and deductibles, because not all policies include the tenant's vandalism," he adds.
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