By Richard Way, editor at the Overseas Guides Company
Natural disasters and domestic emergencies – a bit like taxes, they happen wherever you are in the world, which is why having suitable insurance for any overseas property you buy is so important.
Being half a day’s travel, including a flight, from an overseas home makes dealing with sudden domestic emergencies a bit tricky. So you need to know how you would cope with such a situation and that your insurance firm will deliver for you.
One couple who have had to deal with an emergency at their property in Spain, while back at home in the UK are Andy and Bernadette Jones from Oswestry.
“We’d just got home after a long weekend break, when we had a call from Spain saying our boiler had burst and there was water leaking everywhere,” recounted Bernadette. “We didn’t know who to contact, so I called Julie at HomeEspaña, the agency we bought from, who called the water company for us.
“I promptly couriered a key out to her – at that point we hadn’t got round to leaving one in Spain – so she could get into the property and check everything was under control. She also phoned our insurance company and arranged for them to make repairs. Incredibly, we had new worktops and a new boiler installed within two weeks of making the claim!”
It would seem buying through an agency with good after sales or finding a reliable local keyholder is as useful as an efficient insurance company – the Jones’s agent also helped them arrange insurance for their scooter, which they later bought.
For many overseas homeowners, peace of mind comes from choosing a UK insurance company, rather than a foreign one. There are pros and cons to each, but key benefits with the former are that you know the helpline and your policy will be in English, you can make payments in Sterling and by direct debit, and often your liability limits will be higher.
Whoever your insurer, when it comes to the details of your cover, be sure to choose a specialist policy intended for holiday homes.
A standard household and contents policy won’t cover you for those periods when the property is vacant or rented out. Also, check you are insured for an adequate value – the sum your property is insured for is based on how much it would cost to rebuild and should be index-linked.
And don’t forget to include contents – on a “new for old” basis – in your policy. Buildings insurance will cover permanent fixtures and fittings against damage but other items, such as appliances and furniture, will need insuring under a contents policy.
Meanwhile, if you rent out your property make sure you are covered for public liability insurance, loss of rental income following a claim, emergency travel and accommodation, and accidental damage cover for holiday tenants, as well as friends and family (this covers spillages and breakages).
Typically, foreign insurers often do not provide the same level of public liability cover as those in the UK – in Spain, for example, cover is typically up to £200K. Something to bear in mind is that you could be sued back in the UK for an injury that occurred in your property abroad – so skimp on this at your peril.
Typical features at your overseas home that will increase your premium include a private pool/ hot tub, non-habitable outbuildings, or a conservatory. So a studio apartment will cost less to insure than a four-bedroom villa with a summer house and pool.
Insurance premiums do vary, if only a little, by country and in some countries you may need insurance against certain natural disasters, such as earthquakes in Turkey or hurricanes in the USA, or other scenarios such as electrical power surges.
Foreign taxes are applicable to many policies. Check that the correct taxes will be paid by your insurer – UK insurers should do this for you automatically.
And finally – consider how you would cope if you had to ask a plumber or electrician to visit your overseas home in an emergency. Some insurers, such as Intasure, offer access to a 24-hour helpline with English-speaking staff who will provide a translation service or speak to tradesmen on your behalf.
