Home Insurance Rates for Properties Abroad - In recent years, It has become fashionable to buy a second or retirement home in Spain or other European Country, in fact there are no over 600,000 UK Expats living in Spain alone.  A trend that has recently started to develop is the purchase of foreign property for investment and to produce a rental income, this is the so-called “fly to let” market.  One of the problems facing owners of property

abroad is the ability to purchase suitable home insurance rates for buildings and contents cover.  You may discover it is cheaper to buy cover from a foreign or local insurance company and the local agent or notaire may recommend this to you, but beware you may discover that local insurance does not offer the same range of perils as obtainable from a United Kingdom based Insurer.  In general, Uk insurers tend to try to follow the standard wordings available in this country but with certain additions or restrictions depending on the country where your property is situated. Several countries have Interesting Policy variations, in Spain for example, policies may include Fire Brigade charges, something that we all take for granted and “ Consorcio” a requirement of a law passed in Spain in 1954 requiring cover to be provided to guard against natural disasters.  The levy for this is usually paid for out of “ local taxes” similar to the insurance premium tax levied on United Kingdom Insurances. Make sure your policy includes all local taxes and that the insurer will pass these to the relevant government department on your behalf. It is vital that you check the level of Public or Property Owners Liability cover as this may be limited or simply not covered at all. If you have a swimming pool, make sure your liability policy extends to cover this as well. It is always a good idea to make sure that your policy will cover incident Employers Liability to-cover persons such as gardeners or domestic cleaners etc.  In certain countries and areas, you may uncover that “ Earthquake” cover is not an option offered by the insurer. It is vitally important that you fully understand the extent of your cover and you obligations under the contract wording. Sections of a policy that may be standard in this country may appear as option extras on a foreign or overseas policy.  Perhaps the most important aspect of your policy to check is the security arrangements. If you property is a second property and you do not let it, there may be periods in excess of the insurers standard allowance that the property is unoccupied. Always read your policy wording, you establish that your insurers want special security measures to be put in force and they may also require the water systems to be drained and all services turned off at the mains. A list of exclusions and un occupancy exclusions can be found in your policy document and should also be included in the “ Key Facts leaflet, make sure you study these documents and are fully aware of your responsibilities.  You should always ask your solicitor to check the cover provided as with many policies “ fixed” items such as bathrooms & kitchens are excluded. If this is the case enquire from your Insurance advisor if the items can be covered under a contents insurance policy. If it is your attention to rent your Holiday Property, make sure that you tell your insurance company as you may uncover that your standard policy wording doers not cover this, even if you intend to let friends stay in the property free of charge, it is a good idea to advise your insurers as they may have to make some alterations to your policy cover.

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