Do all landlord insurance policies cover you if you live abroad?

If you let property in the UK but live overseas, it’s important to know that you will need to take out specific expat landlord insurance. If you simply have a standard landlord insurance policy, most providers will not accept cover, meaning they will either reject a claim entirely or not pay out in full.

This is because the risk of something going wrong with the property and tenancy is considered greater when the landlord isn’t a UK resident. You are likely to visit and check on the property yourself much less frequently, and you will be unable to respond quickly in person if there’s an emergency.

As such, most insurers will have certain additional stipulations before they will provide cover. Our own policy for non-UK domiciles requires that landlords have a UK managing agent in place and a written assured shorthold tenancy agreement.

So, as an expat landlord, there are two key things to ensure:

1. You have an experienced, qualified managing agent that you can trust to look after the property and tenancy in your absence, ideally one which is a member of ARLA or RICS
2. Your insurance policy provides a sufficient level of cover so that you are financially protected against the most unexpected and costly events associated with your rental.

Expat insurance will cover all the things you would expect with a standard landlord policy:

• Building insurance, against theft, fire and flood
• Damage to contents, including furnishings
• Damage caused by tenants
• Loss of rent or alternative accommodation for tenants following an insured event
• Property owner’s liability
• Contingency cover for tenants’ non-disclosure

Depending on the extent of the services provided by your managing agent, it is also worth considering adding 24-hour emergency callout cover. That means your tenants can act quickly to get assistance for a range of emergencies, including burst pipes, boiler breakdown, roof damage and blocked drains, which should reduce the need for you to make a potentially expensive claim for damage.

Is expat landlord insurance more expensive?

In general, insurers won’t apply an additional fee for providing expat cover, however, the cost of any landlord insurance depends on various factors, including:

• The property’s location and rebuild cost
• The level of cover you choose – which may be higher than if you were resident in the UK
• The amount of excess you are prepared to pay on claims

It is also affected by the security measures taken to protect the property, with more secure properties considered a lower risk for insurers. So, even though your own requirements for expat insurance could make it more expensive overall, you may be able to bring down the cost by installing things like security lights, cameras and alarms, and ensuring the property is inspected regularly. You may also be able to save money by paying your annual premium up front, rather than in monthly instalments.

If you currently live or are planning to move overseas and would like to discuss insurance for your rental property, our team of experts is here to help. Call 01903 890044, email info@bodeinsurancesolutions.co.uk or get a quote online.

If you are a current landlord with any of the agencies in LRG, an insurance quote is ready and waiting for you in your online landlord account. No fuss or forms to fill out!

Bode Insurance Solutions Limited is registered in England (Company no 03101637) Registered Address: Crowthorne House, Nine Mile Ride, Wokingham, Berkshire RG40 3GZ.
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