The option of purchasing a holiday home abroad is appealing to most people, even during the depths of a prolonged, global recession. The primary reason for this is that properties can be sourced extremely cheaply overseas, especially in comparison with the inflated prices that dominate the UK real estate market. While as an investor you may be able to purchase a picturesque residential property in Hungary for as little as £7,000, however, it is still important to protect this financial commitment and maximize any potential savings.
Holiday Home Insurance: The Key Considerations
In order to ensure that your overseas property investment delivers a viable financial return, you should seek out comprehensive insurance coverage from a reputable provider. To achieve this, you will need to think carefully about your specific needs and the complexities of international property law. Consider the following: –
Consider the Fundamental Principles of Domestic Home Insurance: Many people fail to secure adequate coverage as they become confused about the differences between domestic and overseas home insurance. As a starting point, it is important to remember the reasoning and fundamental principles of home insurance remain unchanged whether shopping aboard or at home. The key objective of this exercise is ultimately to protect your property from theft or damage, and this relates to both the external structure and any contents held within. By keeping this point in mind, it is far easier to appraise insurers and access the best possible deal.
The Demands of Geographical Distance and Risk: While it is important to understand the similarities between domestic and international home insurance, however, the next step is to identify the key differences. In terms of cost, insuring an international property is a more expensive past time as insurers consider it be at a higher risk of trespassing and vandalism. This is because the property is likely to be unattended during specific, off-peak periods. If the property is leased to visitors during your absence, this will also need to be factored into the cost as you have less control over any damage that may be incurred.
Considering the Vagaries of International Law and Property Features: Once you have identified a specific property and country that you would like to purchase, it is important to understand more about the region, its culture and the governing real estate laws. By seeking out professional advice, it is easier to comprehend your requirements as an international property owner and uphold the integrity of the investment. Another interesting point to consider is additional property features that may not be standard in UK homes, such as a swimming pool for example. This may require specific coverage, depending on the nation in question and its governments attitude towards pool safety.
The Last Word for International Property Owners
If you are novice property owner, it is worth researching the fundamental principles of home insurance prior to purchasing a holiday home. To acquire this knowledge, consider consulting with experienced providers such as Monkey Insurance and gauging their opinion on your specific real estate goals. By liaising with industry experts such as Monkey, it is easier to make informed decisions and ultimately protect any overseas property investment that you choose to make.
