When choosing a company that will insure your foreign home, be sure to pay attention to one of the most important factors – the language in which the insurance contract is drawn up. As a rule, all documents are provided in the official language of the country. But if you bought a house, for example, in Italy and do not know Italian at the appropriate level, it will be quite difficult to understand what is included in the insurance package, how exactly the insured event is determined and what compensation you can expect. Signing an insurance contract, which will lack the expected and even discussed conditions, is simply unacceptable. There are very few insurers and brokers who are ready to provide a translation of the contract into Russian, and it is not easy to find them. A reasonable compromise may be the translation of documents into English – this service is widespread in European countries.
It is important to take into account the nuances
If you want to reduce costs, then correlate prices and services in the insurance contract that you conclude. A reasonable option is to insure the house for the amount of the maximum possible repair – in any case, it is much less than the market value of housing. At the same time, do not forget to take into account the cost of repairing outbuildings, swimming pools, gates, fences, etc. But in no case underestimate the size of the area, trying to reduce insurance payments. The fact is that if an insured event does occur, the insurance company may refuse to cover all expenses in full, since the correct data was not specified during the insurance.
It is important to know that utility bills in condominiums may include insurance of the building and common property, but not equipment and furniture installed in private apartments. Built–in wardrobes, kitchen furniture and plumbing - all this must be registered in your own insurance.
Those who have a private pool need to make sure that it is mentioned in the insurance policy. Although pools are most often included in the general insurance of a building, some companies, especially in Spain, do not take into account pools and outbuildings, so be on your guard. It is also necessary to know the local legislation. For example, in France, private pools cannot be located in areas that are open to free access. Failure to comply with the requirements of this law may result in the insurance being declared invalid.
How to save money
Insurance of a foreign home will be cheaper if the building is equipped with fire or burglar alarms, has strong doors, bars on windows, etc. If there are particularly valuable items or collections in the house, they can be included in the description of housing and increase the amount of insurance payments in case of loss. Naturally, such insurance will cost a little more.
Also, ask about emergency insurance – this is one of the ways to reduce the insurance premium, while maintaining decent payments. With this type of insurance, the insurance company is responsible and guarantees payments only if the amount of damage exceeds a predetermined amount. If the damage was not large enough, then the costs of its elimination are borne by the policyholder himself. Such a scheme, which does not provide for compensation for minor losses, in many companies allows you to reduce the insurance premium by about 10%, whereas payments can be more than with conventional insurance.
Such a useful insurance
Insurance becomes especially important if it is planned to rent out real estate, because apart from natural disasters, your property may suffer at the hands of the tenant. A lease agreement that places responsibility on the tenant will make him treat your property more sparingly. This kind of insurance is a fairly common service, but still carefully check the terms of the contract! It also happens that the insurance is valid only when renting housing to friends or relatives. Other companies may not be responsible for damage caused by tenants.
There is also an opportunity to insure against loss of income if it was not possible to find a tenant for a particular period. This type of insurance is especially important if the rental income goes to cover the mortgage loan. If, for one reason or another, the house turns out to be uninhabitable, the owner may require the insurance company to reimburse the rent, and the tenant – the cost of staying at the hotel.
