Overseas Home Insurance - A Buyers Guide

Whether you are looking to insure an existing property abroad, or you are just about to invest in a holiday home, it is essential that you arrange adequate insurance cover to protect your investment. However finding suitable insurance can be difficult as many insurers attach larger risks to holiday homes and overseas properties as they are often left unoccupied for long periods and are used for letting.

There are a bewildering number of alternatives available and options include policies offered by foreign insurers that are written in a foreign language, or UK policies which have been adapted to try to meet the needs of overseas owners.

Don't be tempted to use a normal house insurance policy and not disclose that the property is a holiday home, because insurers have the right not to pay if you make a claim.

The best option in many cases is a specialist holiday home insurance policy that is designed for general holiday home use, and occasional letting.

When arranging your cover, it is important that you carefully consider what you will be using your overseas property for. Will you be using it occasionally as a holiday home or residing there permanently. Or do you intend to let the property out to tenants?

It is also vital that you have the relevant insurance in place by the time you exchange contracts on your property as often the notaire/notario will require your policy document before the sale can be completed.

There will be occasions when the notaire or notario may suggest that you speak to a local insurance firm for a quote. Note: a notaire (French) or Notario (Spanish) is a public officer working under the jurisdiction of the Ministry of Justice who gives authenticity to legal documents requiring formality under French or Spanish Law. (Commonly real-estate deeds, family matters and business law etc.).

However, when, or if you do this, please pay careful attention to the level of cover that is being provided. Holiday home insurance policies purchased overseas typically provide a much lower level of cover than a U.K. policy.

For example, if you are not residing at the property full time there is a real danger you may find that you have insufficient cover should you need to make a claim. In addition these policies are often written in the local language making clarification of policy coverage more difficult.

We strongly advise you however to contact a member of our specialist overseas insurance team to answer any questions you may have about the policies we offer and the cover they provide. For further information please contact us on 0845 470 5128, or +44 845 470 5128 if calling from overseas. Alternatively click here to send the team an email.

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