What insurance do you need for an overseas holiday home?
Getting the right insurance for your overseas holiday home really matters.
A property sitting empty for weeks at a time is at greater risk from natural disasters or theft, just as a second home in the UK might be. But when you are hundreds of miles away, there's an extra element of worry.
Making sure you have the right insurance cover for accidental damage while the property sits empty, extra protection if you have guests staying there, or cover for climate-related issues is key. Peace of mind that you won't be faced with unexpected claims abroad is well worth ensuring you have adequate and appropriate cover.
Here, Jason Jackson, who heads up Boshers, provides the answers to 12 frequently asked questions about taking out insurance for your property abroad.
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Overseas holiday home insurance FAQs
Why won't a standard UK home insurance policy cover a property in Europe?
A standard UK home insurance policy has territorial limits, restricting cover to the UK only. You need to ensure your property in Europe is covered by a policy that includes European territorial limits.
What types of insurance do I need for an overseas holiday home?
Buildings, contents and liability. You need to ensure the building is insured for the correct value, along with your own contents within the property.
How does liability insurance work for a holiday home?
Liability insurance protects against third parties coming onto your property and suffering an injury because of your negligence. Examples could include slipping on an unlit patio or tripping on an uneven path.
Do I need different insurance if I rent out my holiday home?
You need to ensure that you have cover for the loss of any income you might earn from renting out your holiday home. You should also consider the type of guests using your property. For example, stag or hen parties may result in a higher premium.
What is the difference between rebuild cost and market value?
It is extremely important to make sure the building is insured for the correct value. Market value does not equate to rebuild cost, which should include site clearance and architects' fees to rebuild the property.
What should I ask before taking out overseas property insurance?
Buyers should make sure that any conditions or warranties within the policy are clear and that they understand what they are, along with any penalties if they fail to comply.
How does contents insurance work for a holiday home?
You can insure contents against accidental damage and theft, but you must ensure that any high-value items are declared to the insurer to avoid any ambiguity in the event of a claim.
How do insurers define an unoccupied property?
An unoccupied property is one that is not lived in full-time. Generally, insurers apply a 21-day limit, but this can often be extended if you have arranged regular inspections.
What happens if my overseas property is left empty for too long?
If you have not informed your insurer that the property will be unoccupied for longer than the period stated in your policy, you risk any claim arising after that period being declined.
Does overseas holiday home insurance cover floods, storms and subsidence?
Yes. Storm damage, subsidence and flooding are generally covered by insurance.
Are forest fires covered by overseas property insurance?
Forest fires are insured, including both fire and smoke damage. You would receive the money needed to rebuild your property up to the insured value, and temporary accommodation would also be covered until the property has been repaired or rebuilt.
Does apartment block insurance cover my holiday home?
Many management companies insure the entire structure, but apartment owners will still need to arrange their own cover for fixtures and fittings, contents and liability.
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About Boshers
Boshers has provided holiday home insurance for 35 years, offering a range of insurance solutions for holiday homes and holiday lets. They arrange overseas holiday home insurance for a wide range of clients and property types.
📞 Speak to the team: 01237 429444
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Protect your place in the sun
Whether you're buying your first holiday home or already own property overseas, making sure you have the right insurance in place can give you valuable peace of mind.
