Buying Property Abroad

Insuring your Property Abroad

Once you've bought your new property abroad, you'll need to insure the building and its contents.

Getting insurance for your property abroad is just as easy as getting it for your home in the UK. Insurance policies can be quoted for online and even purchased online, but before you rush into an insurance contract, take the time to compare not only the prices but also the level of cover you're getting; more often than not, cheap prices mean lower quality cover.

You can't afford your insurance policy to let you down when it comes to your property abroad. You're at a distance from the property, so you may not be able to see the damage first hand, but have to rely on whoever is maintaining or managing the property for you. Alternatively, if you're living in the property, you want to know that you can call the insurance company, regardless of the time difference and begin to sort out the problem immediately.

What to look for:

Check exclusions – like all insurance policies, you should make sure that you know exactly what's covered and what isn't. This is particularly important if you're renting out the property, or using it as a holiday home. Insurers often place additional restrictions during periods when the property is unoccupied, and it is worth comparing these restrictions across several policies before you commit to one.

Security requirements – insurers often place harsher security requirements on your property abroad than they would at home. Check what security requirements the insurer requests, and decide whether you are happy to abide with them.

For rental properties – rental properties need to have accidental damage and public liability insurance included on their policies. If you are using a rental agency, they may help you to arrange this; but if you're managing the rentals on your property abroad by yourself, then you must make sure that you have the appropriate cover.

Excess – the excess amount can be greater on your property abroad than you would find in the UK. If you feel the excess is too high, ask the insurer why it is set at that level, and see if you negotiate a lower excess. Alternatively, look at another policy.

Whilst we hope that nothing happens to your property abroad that requires you to make a big claim on your insurance, we know that having adequate cover is vital and we'd advise you to check out a range of policies, and speak to an FSA-regulated insurance broker or insurance company for more information.

More information on buying property abroad:

Researching buying a property abroad  Why buy a property abroad?  Points to Consider when buying a property abroad  How to finance your property abroad – various options and likely costs  Building a property abroad  General tips for buying a property abroad  Buying a property abroad with friends  Choosing your new property  Could buying a property abroad secure your future  Buying property abroad as an investment  Living permanently in your property abroad  Maintaining your property  Property abroad - don't stop at Europe  Property abroad - FAQs  Renting your property abroad  Tax and your property abroad  The responsibilities of owning a property abroad  The true costs of an overseas property  Viewing your property abroad  Legal considerations when buying a property abroad

• Request a quote for an overseas mortgage
• Enquire about currency exchange
• Get a quote for equity release
• Find out what your endowment policies are worth  
• See how much money you can release by remortgageing
• Appoint a UK legal representative
• Get a quote for overseas property insurance
• Find a property