Insuring your property abroad

The trend of investing in property abroad is increasing in the recent years. Investing on Property Abroad is a huge decision and has to be made cautiously. So many pros and cons have to be measured and gauged before investing in property abroad. A number of investors find it as a profitable long term investment. Investors are interested on overseas property as it serves as holiday home during vacations and also earns rental income for the owner. Most of the overseas property owners are financed through overseas mortgages. So, you cannot afford to damages caused during construction or other calamities without proper insurance abroad. Your property is subject to high risk and it is highly essential for you to insure your overseas property.

There are different kinds of insurance available with different clauses. Property insurance protects your property or assets against physical loss or damage.

Many properties for sale abroad come with a lot of insurance schemes. Generally, insurance for property abroad covers four essentials such as, the property, personal belongings, liability protection and additional living expenses in case if the property owner is unable to take care of his expenses temporarily. Building Insurance includes buildings, garages, swimming pools, terrace, gates, fence, water tanks and others.

Some benefits of insurance:

• Your overseas property will be fully protected even if it is not occupied.
• Your building insurance abroad will protect your property from natural calamities like fire, flood, earthquake, etc and accidental calamities such as theft, falling objects, etc.
• Public Liability Insurance is automatically included. This protects both the property owner and the tenant. This policy also protects you against any legal action from the injured tenants or third parties.
• In some countries, it is essential to have Employers Liability Insurance for owning a property abroad. This cover will also protect the property owner against the legal action, in case or accidents or injury caused.
• Additional coverage such as contents insurance abroad will cover everything from carpets to costly furniture and electrical appliances.
• Malicious damages, burst oil pipes, water tank repairs, sanitary fitting are covered under insurance.
• Additional living expenses while in your overseas property such as travel costs etc are provided if the policy holder is unable to take care of his expenses temporarily.
• Many insurance policies cover loss of rent following the damage caused.
• Title Insurance will protect you against the cost of legal liabilities that arise over ownership disputes.
• Generally, a property owner’s insurance will not cover a tenant’s property or his belongings. So it is recommended to tenants to have tenants insurance which will cover the damages caused to his property abroad and protect his overseas property.

However one has to be careful in choosing an insurance policy. It is highly recommended that international movers understand the clauses clearly before entering into a policy. Foreign investors and international movers can claim for their policies available in English for better understanding. Adequate overseas property insurance has to be covered. Estimation of coverage should include rebuilding costs, clearing costs, costs incurred in hiring professional help etc. Higher valued items such as jewels, antiques, furniture requires proof of security and certificate of authenticity to claim.