Overseas property insurance: is it necessary or not?
Obtaining insurance when acquiring real estate abroad has become a standard procedure today, but not all buyers understand the meaning of this action, in which cases it is necessary, but the order of all processes and the amount of expenses that are expected within the framework of this procedure.
Insure overseas property
Foreign real estate market experts recommend that you insure your home when the owner does not live in it permanently, literally visiting once or twice a year. Anything can happen at any time with an apartment or a house, and the lack of an owner in place does not always allow you to take prompt or preventive actions (neighbors flooded or vice versa, mold appeared, a hurricane passed and a window broke and broke through a pipe, electricity was cut off, etc. etc.), as a result of which property of not only the owner himself, but also of neighbors may suffer. In Spain today, almost all local residents have insurance for apartments, houses, etc., which indicates the importance of this process not only for “resort” housing, but also for everyday life.
If a house is rented for short or long term, this is also a reason for its insurance – not all tenants are conscientious and accurate when living, as a result of which the owner’s housing fund can sometimes be seriously damaged. In addition, the availability of insurance for rental housing increases the status of tenants and reduces the time spent searching for them. It is also important to resort to insurance if there is no management company in the territory of the house or residential complex, which, if necessary, can take all necessary measures.
When the buyer decides to purchase housing on the secondary real estate market, it is important to clarify all the nuances regarding not only the guarantees of a particular developer, but also the rules established in the country. For example, when buying a new building in Turkey, construction companies give a guarantee for building materials for a period of up to 5 years, so if you buy an object after such a guarantee and do not insure it, then in case of problems you will have to take it on yourself.
As a rule, home insurance is carried out through a bank, an insurance company or an insurance broker immediately after a purchase and sale transaction is completed and the property is entered into the real estate cadastre. The amount of payments will depend on the type of insurance that the client selects based on the results of consultations and recommendations of realtors, as well as on the area of the apartment. In some banks in European countries, a prerequisite for opening an account is insurance, in connection with which many foreign real estate buyers insure their housing in this way.
The average cost of insurance in Spain today ranges from 150 to 300 euros per year. In addition, you can choose certain options (insurance against fire, flooding, theft) or full insurance – as is customary in Italy – and the price of the insurance policy will also depend on this, but usually it is 1% of the value of the property. The cost of insuring an apartment in the Czech Republic starts from an amount of 100 euros per year.
In Bulgaria, the cheapest option will cost 15 euros per year, while the amount of compensation will not exceed 7,000 euros, while insurance worth 30 euros involves compensation in the amount of 15,000 euros. As for the terms of registration, a specific country plays an important role here: for example, in the Czech Republic the policy will be ready in a few days.
In Turkey, the cost of home insurance starts at $ 45 per year, where the so-called DASK earthquake insurance in the amount of about $ 9 is also compulsory. It is imperative to insure housing in case of purchasing an apartment on credit, while the bank is obliged to take out insurance not only for real estate, but also for life and health.
Home insurance remotely from Russia
The owner of foreign real estate has two options for obtaining an insurance policy: independently sign insurance or issue a power of attorney. Thus, if you have a power of attorney with the right to perform this action, it is possible to insure foreign real estate remotely from Russia, but you should think about the possibility of remote insurance in advance. But in Turkey, insurance companies do everything “online” when funds are credited to the current account.
Algorithm of actions in case of an insured event
The first and most important thing to do when an insured event occurs is to contact an insurance company. If possible, you must attach a photo and video illustrating the problem. The representative of the insurance company must draw up an insurance protocol, assess the extent of material damage and send the case for consideration. Then the amount of the insured event is determined taking into account all factors. This usually takes from two months to six months, depending on the severity of the damage.