Who pays for a leak depends on where the water comes from. If it comes from a private installation in your home, such as a pipe, a drain or the washing machine, you or your home insurance are responsible; if it comes from a common element, such as the roof, the façade or a shared downpipe, the community of owners and its policy are. Insurance only pays for what the contract covers: lack of maintenance, condensation damp or faulty building work are usually excluded.
On the Costa del Sol the question comes up often: half of the flats for sale are more than 20 years old, one in five is a penthouse whose terrace is usually the ceiling of another home, and many properties stay closed for weeks between stays.
Who pays for a leak, depending on where it starts?
The first step is to find the source, because almost everything depends on it. Spain’s Horizontal Property Act requires each owner to keep their home and private installations in good repair and to make good any damage caused through carelessness, and requires the community to maintain the building and its shared installations. This table sums up the most common cases.
| Source of the leak | Who is responsible | Which insurance usually covers it |
|---|---|---|
| Private pipe, tap or drain | The owner of the home where the leak starts | Their home insurance: water damage and liability cover |
| Washing machine, dishwasher or water heater | The owner, who can claim from the manufacturer or installer if there was a defect | Their home insurance, depending on the policy terms |
| The building’s downpipe, riser or main supply pipe | The community of owners | The community’s policy |
| Roof, façade or communal courtyard | The community of owners, out of its funds or through a special levy | The community’s policy, under the conditions it sets for rain |
| Penthouse terrace that is the ceiling of another home | The community, if the waterproofing fails; the penthouse owner, if there was misuse or a lack of cleaning | The community’s policy or the penthouse owner’s, depending on the cause |
| Poorly executed renovation in your home | The owner, who can then claim from the company that did the work | Usually excluded from home insurance; the contractor’s policy responds, if it has one |
| Construction defect in a new build | The developer and the other parties involved in the build, for three years if watertightness fails | Not covered by the ten-year insurance, which only protects the structure |
If the home is rented out and the leak is caused by the tenant’s carelessness, such as a tap left running, the tenant pays; worn-out pipes remain the owner’s responsibility, as we explained on this blog when we went through repairs in a rented flat.
When does home insurance cover a water leak?
Almost all home insurance policies include water damage. Depending on the cover you have taken out, they pay for finding and repairing the fault and for the harm to walls, ceilings, floors and furniture. Liability cover is the key element when the water reaches your neighbour’s home: the insurer compensates them up to the agreed limit, and the neighbour can claim from the insurer directly, because Spain’s Insurance Contract Act gives injured third parties a direct right of action.
What is usually excluded is much the same from one policy to the next:
- Damage caused by lack of maintenance or by the wear of installations that were already in poor condition.
- Condensation damp and slow seepage that has been spreading for months.
- Poorly executed building work and renovations.
- Rainwater that comes in through open windows or doors, or at a lower intensity than the one set in the contract.
Rain deserves a note of its own on the Costa del Sol, where it rains on few days a year but often all at once. Many policies only cover rain getting in above a minimum intensity set in the policy terms, often 40 litres per square metre per hour. And a leak caused by rain is not paid for by the Consorcio de Compensación de Seguros, Spain’s public insurer for extraordinary events, even during a DANA storm: its rules expressly exclude rain falling directly on the property or collected by its roof, roof terrace or drainage system.
Timing matters too. The law gives you seven days to report the claim to your insurer, unless the policy allows longer, and requires you to take steps to limit the damage. Reasonable costs of stopping it, such as shutting off the water or calling out an emergency plumber, are borne by the insurer up to the policy limit.
What happens if the water is coming from the flat upstairs?
It is the most common case in a block of flats. Tell your neighbour and the property manager as soon as possible, because until someone gets into the flat above nobody knows whether the fault is theirs or in a shared pipe. The neighbour is required to allow access so that it can be found and repaired, and if the repair falls to the community, the community must compensate them for any damage the work causes in their home.
Once the source is clear, the practical course is to let the insurers deal with each other: yours can pay for the damage and then claim from whoever is responsible, because the law allows it to take your place against them. If your neighbour has no insurance or refuses to pay, you can still claim from them directly, with the loss adjuster’s report and the invoices as evidence.
Who pays for leaks from a penthouse terrace?
It is the big question on the coast, where penthouses with large terraces and solariums abound. When the terrace is also the ceiling of another home, it is usually a common element for private use: the penthouse owner has exclusive use of it, but the waterproofing and the structure belong to the community. So if the waterproof membrane fails with age, the repair and the damage to the neighbour below are usually paid for by the community.
The picture changes if the penthouse owner causes the problem: drains blocked because they were never cleaned, planters without drainage, a hot tub or a pergola anchored through the waterproof layer. The law requires owners to use common elements properly, including those for private use, and to answer for any damage they cause. In our portfolio, one in five flats for sale is a penthouse or a duplex penthouse, and 15% advertise a solarium.
How many flats for sale on the Costa del Sol are more than 20 years old?
Age matters: over the years, pipes, seals and waterproofing lose their effectiveness, and buildings more than two decades old are where it pays most to check the plumbing before you buy. These are the figures from our portfolio by municipality, based on the year of construction stated in the listings.
| Municipality | Flats for sale | Over 20 years old | Over 35 years old | Penthouses and duplex penthouses |
|---|---|---|---|---|
| Marbella | 1,177 | 72.9% | 27.6% | 21.9% |
| Malaga | 246 | 71.2% | 54.9% | 8.5% |
| Benalmádena | 229 | 58.2% | 24.0% | 26.6% |
| Torremolinos | 121 | 54.5% | 35.7% | 16.5% |
| Mijas | 584 | 50.3% | 21.4% | 20.4% |
| Estepona | 837 | 40.0% | 16.3% | 24.4% |
| Manilva | 207 | 40.0% | 13.5% | 19.3% |
| Fuengirola | 573 | 36.8% | 25.1% | 17.8% |
| Benahavís | 306 | 36.1% | 8.9% | 26.1% |
| Casares | 157 | 18.1% | 0.0% | 29.3% |
| Costa del Sol total | 4,621 | 51.1% | 22.6% | 21.4% |
Marbella and the city of Málaga have the oldest housing stock: more than seven in ten flats for sale are over 20 years old, and in Málaga more than half were built before 1991. At the other end of the scale is Casares, with the newest buildings and the highest share of penthouses, almost three in ten flats, where the terrace is the thing to watch. Percentages are based on the listings that state the year of construction, 91% of the total, in September 2026.
What should you check before buying so you don’t inherit a leak?
- Ceilings and corners: stains, peeling paint or a ceiling freshly painted in just one spot.
- The water meter: with every tap turned off it should not move; if it turns, there is a leak.
- Under sinks, basins and appliances: damp, rust or cracked hoses.
- Terraces and solariums: the condition of the waterproofing, the slopes and the drains.
- The community minutes for recent years: recurring leaks, approved special levies or disputes between neighbours.
If a leak appears after the purchase because of a defect that could not be seen when you viewed the property, the Civil Code lets you claim against the seller for hidden defects, but only within six months of handover. New builds give you more room: the developer and the other parties involved in the build are liable for three years from completion of the works for defects affecting habitability, and watertightness is part of it. You have two years to claim from when the damage appears, and the compulsory ten-year insurance only covers the structure.
What if the leak happens in your holiday home while it is empty?
It is a very coastal risk. In 2025, non-resident buyers accounted for 27.9% of home purchases in the province of Málaga, compared with 7.4% across Spain as a whole, according to the Bank of Spain, and many of those homes stay closed for weeks. A leak that nobody sees can soak floor slabs and neighbouring flats for days, and some policies limit cover if the home is unoccupied or require the stopcock to be turned off during absences.
- Turn off the main stopcock every time you leave.
- Fit leak detectors with a solenoid valve, which shut off the water automatically and send an alert to your phone.
- Leave keys with someone you trust or with a management company that checks the property regularly.
- If you let it to tourists, tell your insurer: the law requires you to report anything that increases the risk, and a standard home policy may not cover that use.
What should you do in the first hours after a leak?
- Shut off the water at the stopcock and, if the water reaches sockets or light fittings, the electricity too.
- Take dated photos and videos of the damage and of the point where the water is coming out.
- Tell the affected neighbour and the community’s property manager.
- Report it to your insurer well within the seven days and ask for a loss adjuster to visit.
- Keep the broken parts and every invoice for plumbing, drying and painting.
In short: who pays for a leak?
Whoever is responsible for the source pays: the owner if the fault is in their home, the community if it is in a common element, and the developer if it is a construction defect covered by law. Insurance takes on the cost when the policy provides for it, but it does not cover carelessness or lack of maintenance, so checking the installation and the policy terms costs less than arguing afterwards.
If you are thinking of buying on the Costa del Sol, at EVS PROPERTY GROUP we help you review the condition of the building, the community minutes and each property’s weak points before you commit.
This article is for general information only and is not a substitute for a lawyer’s advice on your specific case.
Frequently asked questions
Does home insurance cover a leak coming from the neighbour upstairs?
Usually yes, if your policy includes water damage: your insurer repairs your home and then claims from your neighbour’s insurer. If your neighbour has liability cover, you can also go directly to their insurer.
How many days do you have to report a water leak to your insurer?
Seven days from when you become aware of it, unless the policy sets a longer period. Reporting late does not cancel your cover on its own, but the insurer can claim from you any loss caused by the delay.
Who pays for waterproofing a penthouse terrace?
If the terrace is the building’s roof or the ceiling of another home, the community usually pays, because it is a common element even though only one owner uses it. The penthouse owner is responsible for cleaning, day-to-day upkeep and any damage caused by misuse.
Does the Consorcio de Compensación de Seguros pay for a leak caused by torrential rain?
No. The Consorcio covers extraordinary flooding, but its rules exclude rain falling directly on the home or collected by its roof, roof terrace or drains. That leak depends on your ordinary policy and its conditions for rain.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
