Buying overseas property and insuring your property overseas
Whilst you may not be required by law to take out home insurance overseas in all countries, it would be entirely foolish not to do so. When buying overseas property with a mortgage the lender will normally require proof of some forms of insurance before releasing funds. They may suggest an insurer but you may be more comfortable insuring your property overseas yourself.
Types of home insurance overseas buildings
When organising home insurance overseas you must ensure it covers the whole of the property including:
- The structure of the property overseas.
- The cost of rebuilding the property overseas in the event of fire, flood or other eventuality.
- All fittings inside the property overseas.
When buying overseas property you should also insure any outbuildings or other constructions connected to the property. This is the type of home insurance overseas that a lender will insist upon being in place before releasing the loan.
Types of home insurance overseas contents
If you are planning on buying overseas property to use as a holiday home which will lie empty most of the time then it is inadvisable to fill it with expensive items. Home insurance overseas should cover the replacement of all goods on a new for old basis. You may need to take additional insurance for goods contained within your property overseas if you are planning on letting it out commercially.
Types of home insurance overseas public liability
This offers vital protection if you are buying overseas property to let out and covers you in the event of an injury or worse to a third-party whilst on your property. A minimum indemnity of £2million is recommended and most agencies will require you to have this level of cover before agreeing to let your property overseas.
Types of home insurance overseas death and serious injury
Some lenders will also require you to take out a policy which covers the remainder of the mortgage in the event of death or serious injury, which meant you could no longer work. This also protects your dependents in such grim circumstances and should be taken whenever you are buying overseas property.
