Top tips for insuring your overseas home
aboutproperty.co.uk, 5 June 2007
Finding home insurance for a home abroad is one of the lowest priorities for overseas property investors, a study reveals.
A survey by overseas currency specialist HiFX finds investment viability and legal issues topped the priority list.
With this in mind, HiFX is giving its top tips on home insurance for overseas property.
"Emerging markets present their own challenges but there are some fundamental factors that people need to consider when insuring any property abroad," commented Mark Bodega, of HiFX.
He added: "Adequate overseas property insurance is essential to safeguard the viability of your investment. Storm damage and burst pipes rank amongst our most common claims. Overseas repairs can be expensive and, in order to protect your investment, it is essential that any material damage is repaired by trustworthy skilled tradesmen."
Top tips for insuring your overseas home
Do not be tempted to use a normal home insurance policy and avoid disclosing the property is a holiday home as this could invalidate your insurance.
When arranging your cover, it is important 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? In particular how long is the property likely to be empty?
Consider the language difficulties of local language insurance policies. Understanding the specifics of cover levels and making a claim in a foreign language can be tricky.
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.
With increasing cases of "Land Grab", where local authorities reclaim the land that a property has been unwittingly illegally built on, it is important to bear in mind that most insurance rarely covers the reclaiming of land from ruling authorities. Therefore, anybody buying in Spain should do vigorous checks prior to buying to protect themselves.