You will need at least buildings and contents insurance for your property. You should also insure for natural disasters, such as flooding, and for any third-party claims against you (for example, consider what might happen if someone slips on your wet tiles and sues you for their medical expenses, or if a water leak from your property causes damage to a neighbour's property). Most insurance companies offer comprehensive policies covering buildings, contents and third-party claims.
Shop around to find the best deal for your circumstances - and maybe ask people who have been here for some time for their recommendations. The procedure in Spain is the same as in any country, except that premiums are usually paid in full annually rather than on a monthly direct debit. As you would expect, premiums will vary according to whether you have burglar alarms, metal grilles (rejas) at the windows and doors, and any other security devices.
Make sure that you check the small print of your policy to ensure that your cover fits your requirements - and do not assume anything! For example, it could be that claims for theft will only be honoured if you have proof of forced entry, so that if an intruder slips in through an open door or window, takes your wallet and slips out again you may not be covered. Also, damage caused as a result of a natural disaster may be listed as an "Act of God" and not covered. It's a good idea to get your insurance contract translated into your native language for future easy reference.
