Is insurance required by law?

Only if you have a mortgage. Otherwise highly recommended.

Does it cover holiday rentals?

Only if declared. Standard policies exclude commercial use of the property.

Yes. There are no restrictions on foreigners buying property in Spain. You'll need an NIE number and a Spanish bank account; that's it.

No. Many buyers on the Costa Blanca are non-residents who use their property as a holiday or rental home. Residency only matters for tax purposes.

Home insurance is mandatory if you have a mortgage and strongly recommended even without one. Costs are surprisingly reasonable.

Standard policies cover building, contents, third-party liability and assistance. Pools, alarms and rental-use need to be declared.

€200–€600/year for a typical Costa Blanca apartment or townhouse; €500–€1,200/year for a villa with pool.

Mapfre, Línea Directa, Allianz, Caser. English-speaking expat-focused brokers exist on the Costa Blanca.