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Investment Properties Portugal and Spain – Your Guide to Insurance |
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Insuring your investment property seems simple enough. But what you see isn’t always what you get - unless you talk to the right people. Alaric Errington of Lloyd & Whyte International looks at the issues.
Investment Property Portugal - Investment Properties Spain |
Don’t expect the insurance policies available for your property overseas to be the same as those you’re used to back home - there are a lot of differences. Therefore, access to products written in a language you can understand is vital if you are to avoid a potential disaster in time of need. There’s a logical explanation as to how home insurance premiums are calculated, but there’s a greater choice of products available than you might imagine. When it comes to insurance, the old sayings are very true: ‘You get what you pay for’ and ‘The devil is in the detail’! |
For example, Portugal and Spain are earthquake zones, with earthquakes occurring every year. Although these quakes are generally too small to even notice, they do pose a risk. Did you know, a recent survey across a section of property owners in Portugal revealed that, on average, each homeowner would have to pay the first €22,000 of any insurance claim in the event of an earthquake being the cause of the damage. Why? Because over 80% of them had a local policy with a significant excess (anything up to 10% of the total building sum insured) on any earthquake-related claim. |
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First, an obvious but vital question: can you actually read your policy? If you can’t, you have a problem. Even if you have a translation provided from the insurer, you’ll often find that these translations are invalid, with a disclaimer stating that the translation cannot be relied upon. In the event of a disputed claim, only the policy wording in the native language prevails. So if in doubt, get a policy written in your own language or, at the very least, get your insurance from a company which can provide a ‘Summary of cover’ in English - and who will stand by this legally. |
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As added security, it’s important to check that your provider has the appropriate and necessary legal and regulatory standing. Lloyd & Whyte International is authorised and regulated by the Financial Services Authority (FSA) in the UK so you can be confident that we maintain the highest possible standards throughout all aspects of our business. |
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Surprisingly, paying too much is nearly as common as not paying enough. Why is this? And what should you really consider when insuring your home and its contents? Home insurance premiums are calculated on the geographical location of the property and the potential risks around it, such as rivers, mountains,
land movement etc. Added to this are factors such as the age of the property, its type of construction and materials used; the ‘rebuild value’ and cost of replacing its contents; plus how the property is to be used (rental, holiday home or permanent residence). These are the main considerations dictating the cover available to you and its cost. |
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Important: ‘the cover available to you’ is a key factor in all this. Insurance policies for the majority of properties are based on a standard policy, and cannot be amended for specific requirements. Therefore it’s vital that you fully appreciate what a policy offers - and also what it does not cover. A ‘one-size-fits-all’ approach to insurance is not to be recommended, because customer needs, the type, age and price of a property, its use and cover required all differ from one situation to another. |
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So you need to be talking to a company that offers a wide range of products, to ensure the best choice and cover available for your money. To enjoy this level of service you should seek an independent insurance ‘Broker’ which is fully regulated and qualified - not a ‘tied agent’ who only offers policies from one insurer. Lloyd & Whyte International is a specialist insurance broker for overseas properties, offering a wide range of products to suit your needs. We are UK-based company but with international offices in Portugal and Spain, offering support both at home and abroad. |
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So, the simple answer when arranging insurance in a foreign country is: talk to the experts! Lloyd & Whyte International Ltd is authorised and regulated by the Financial Services Authority.
For further information please contact us using the details below: |
Portugal |
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Maritenda House, EN125 Maritenda,
Boliquieme, 8100-908 Loule
Tel: +351 289 360 578
Fax: +351 289 366 472
Email: info@lloydwhyteintl.com |
Spain |
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Centro Comercial, Puerto Rey,
Segunda Planta, (Local 48)
04621 Vera, Almeria, Spain
Tel: +34 950 460 381
Fax: +34 950 460 046
Email: spain@lloydwhyteintl.co |
United Kingdom |
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Emanuel Court, 20-24
Reddicroft, Sutton Coldfield,
West Midlands B73 6BN
Tel: +44 (0)121 355 2638
Fax: +44 (0)121 354 7877
E-mail: info@lloydwhyteintl.com |
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This article first appeared in ClearView magazine issue #11 (Winter 2006/07). The information it contains was accurate at the time of going to press. For further information, visit www.lloydwhyteintl.com |
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