Overseas property must be insured correctly investors warned

[Horizon Property Group]

Many Overseas Property investors get so caught up in the search for a home abroad they neglect to think about insuring their property, a study has revealed.

The research by overseas currency specialists HiFX found that investment viability and legal issues were the most important issues for the majority of Overseas Property purchasers.

Giving its advice on home insurance the company urged homebuyers not to use a normal home insurance policy - saying it is important not to disclose if the property is a holiday home as this may invalidate any insurance policy.

It also advised people to think about the language barriers associated with applying for insurance in a foreign country, as well as ensuring that all relevant insurance documents are in place by the time that contracts are exchanged.

Commenting on the issue HiFX said: "Emerging markets present their own challenges but there are some fundamental factors that people need to consider when insuring any property abroad.

"Adequate Overseas Property insurance is essential to safeguard the viability of your investment. Storm damage and burst pipes rank amongst our most common claims.

He added: "Overseas repairs can be expensive and, in order to protect your investment, it is essential that any material damage is repaired by trustworthy skilled tradesmen."