Overseas property insurance tips

There are many reasons why people own a holiday property home, from the convenience of having their very own bolt hole in a place they love, to seeing it as an long term investment. However, whatever purpose your second home is used for, it is important that you have the right overseas property insurance in place. When choosing your cover, the following may be worth some consideration.

Tip 1

Many overseas property investors will elect to buy a UK second home insurance policy to cover their overseas second home. This is because the wording (ie the small print) will typically be easier to understand and, in the event of a claim, it makes sense to deal with a UK call claims centre rather than one in another country.

Tip 2

Holiday properties face different risks to those of a home. For example, it could be left standing for quite a long period of time making it more vulnerable to theft; or, if you rent the property out,  you will need to have specific cover in place to not only protect the property against potential damage caused by rentals, but to protect the holiday makers themselves! That is why a traditional home insurance policy is typically not a consideration.

Tip 3

Overseas property insurance policies can all offer different levels of protection. And what one insurer may offer as standard, another one won’t. Know what you want from your cover and choose your policy accordingly.

Of course getting the policy in plain English written in a manner in which you can understand is vital – we all have to at least glance over the conditions of a policy drawn up in the UK, and it is important to be able to do the same with a policy arranged for a home abroad.

When setting up a policy, the level of cover is also important and it can pay to carefully consider the contents side of the insurance – how much will be kept in the house when you are not there and what parts of the property may you need to arrange extra cover for – such as outhouses and swimming pools for example.

When arranging a insurance it may also pay to check the provider in question does not impose long and detailed conditions or clauses, which can often include the chance of the policy being invalid if you fail to turn off the water or do not drain a central heating system when the home is empty.

Overseas property insurance may sometimes even include things like protection for loss of income should you lose out on rent because of a major problem – effectively protecting the business side of your investment. The right deal can therefore mean you do not end up paying over the odds and hit with a cost which takes the shine off your purchase – cover can be simple to arrange, cost effective and supportive when you need it to be.

Summary

You’ve probably spent a lot of money on your holiday home and that is why having the right second home insurance  to protect it can give you peace of mind.