Can I get insurance as an overseas landlord?

If you live overseas and own a property in the UK, you might be worried about whether or not you can get insurance. Many insurers will decline to offer cover to landlords who reside outside of the UK, however, Nest GI are here to help!

In this article, we are going to explain what overseas landlord insurance is, what it covers and things to consider before taking out a policy.

What is expat landlord insurance?

Expat landlord insurance is a specialist, non-standard form of landlord insurance, catering specifically to landlords who live abroad but rent property in the UK to tenants. It is designed to address the challenges that expat landlords may face in safeguarding their properties while they are living overseas.

Expat policyholders may choose to extend cover beyond standard landlord insurance, to take into account the unique challenges of managing an overseas property. Essentially, these policies will protect overseas landlords for damage to their property, offering a safety net to mitigate the financial impact of any unforeseen issues that occur.

What does expat landlord insurance cover?

The coverage of expat insurance policies depends on the type you have. However, most policies cover overseas landlords for damage to the structure of the property and its contents (if let furnished). Cover will also include liability cover should a tenant be injured, or their property damaged, due to property faults.

What are the different types of insurance for overseas property?

Similarly to standard insurance products, there are a number of expat landlord insurance policies, each covering different things. There are two main areas which can be arranged as a combined policy or in isolation:

Overseas building insurance

Similar to standard buildings cover, overseas building insurance will provide coverage for your property in the event of structural damage caused by natural disasters, fires, floods and falling trees.

If your rental property is owned via a mortgage you are required for you to have building insurance as a condition of your mortgage.

Overseas contents cover

Contents cover is not a mandatory requirement. However, if you’re renting your property furnished (In full or part) contents cover can insure your items against potential theft and damage.

Why do you need expat insurance as an overseas landlord?

You may be tempted to purchase a standard landlord insurance policy. However, most standard insurers will not accept cover if the owner is residing abroad. This could result in any claims being rejected or not paid in full.

Being an overseas landlord adds an extra layer of complexity to an already complicated and risky venture. Expat landlord insurance is designed specifically to address the unique risks and considerations that come with being an overseas landlord. It provides specialised coverage that takes into account the complexities of managing your rental properties from abroad.

Not only does expat landlord insurance protect you against property damage and liability claims, but you should also consider legal cover and 24hr emergency cover which will get a tradesman out to handle any emergencies in your absence.

Expat insurance provides peace of mind, allowing you to enjoy the financial benefits of renting out your property in the UK, without the constant worry of fitting the bill for unforeseen issues.

How much does it cost to insure a property from overseas?

Insuring your rental property as an overseas landlord could be more expensive than if you lived in the UK. Generally, it is considered a higher risk due to the fact that checks on the property may be less regular and mitigating any issues first-hand will be more challenging.

Much like with other, more standard insurance policies though, how much it will cost to insure your rental property as an overseas landlord will vary, depending on a number of key factors.

These include:

  • The property’s rebuilding value – The more valuable your property, the more expensive it will be to insure. This is because insurers take into account the amount it would cost to rebuild the property, should the worst happen.
  • The level of coverage you choose – Of course, the higher the level of coverage you choose, the more expensive your policy will be. Policies that cover a wider range of potential risks will have a higher premium.
  • The excess – The amount you agree to pay towards the overall cost of an insurance claim will affect its cost. Opting for a higher excess will lead to lower premiums, as you are sharing more of the financial responsibility in the event of a claim.
  • The security measures – Properties equipped with security equipment such as cameras and alarms and having a local key holder to inspect the property regularly are perceived as a lower risk, and therefore result in lower premiums.

By carefully implementing security measures, selecting appropriate cover levels, and determining an acceptable excess amount, landlords can tailor their insurance policies to align with their specific requirements and budget.

How can I save money on my expat landlord insurance?

As we mentioned above, the amount you will pay for your insurance policy will depend on several different factors. While this can be confusing, because there is no black and white answer to how much your premiums will be, it does mean that you are able to tailor your policy to make it more cost effective and suit your personal requirements.

Some ways of saving money on your policy include:

  • If you are able to, increasing your excess is an easy and reliable way to cut down the regular premiums for your cover. However, it is important to make sure that you would be able to pay the excess amount in the event of a claim.
  • If you can afford to pay your policy premium for the year upfront, rather than monthly, this will save you money.
  • Shop around – always make sure to source quotes from a range of brokers and insurers so you can compare coverage and prices

How Nest GI can help

Nest GI is a dedicated property insurance broker. We can assist in providing a diverse range of non-standard insurance policies, which may be able to insure your property as an overseas landlord.

Contact us today to speak to one of our trained advisers and discover how we can help you. We can help you to make well-informed decisions and secure the best deal, tailored to your specific needs.

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