International Expat Property Insurance
A Quick Guide to International Expat Property Insurance
People invest significant time and money to acquire things of value to them. The possibility that these items could be lost or damaged during a move or while in residence is a common concern, but there are unique risks to consider when relocating abroad. These circumstances make personal property coverage a necessity in protecting your material investments. International expat property insurance provides coverage for items damaged during the relocation process or while in your foreign residence. There are a few things to consider when purchasing this type of policy, so refer to this quick guide for everything you need to know to acquire adequate protection for your valued possessions.
Choose Wisely – International expat property insurance should be purchased from a reliable and regulated insurance company. When policies are purchased from local providers, they vary greatly in coverage and accountability.
Keep a Safe Distance – There is a distinct advantage to having an insurance provider that is located outside of your host country. In the event of a natural disaster, political violence or other catastrophic event, your policy and the people administering it are at a safe distance.
Know Your Limits – Many policies offered abroad provide very limited coverage. It is important to understand the exact protection you receive under your policy and where the policy provides coverage.
Stay on Schedule – Most personal property policies give you the option of list¬ing scheduled and unscheduled items. Most items you own will be considered unscheduled, such as clothing or house¬hold items. High-value items, such as jewelry and artwork, are considered scheduled items. Scheduling your coverage helps ensure that you receive the full, appraised amount for the item in the event of a loss.
Know Your Worth – Your personal property coverage allows you to assign value to your belongings in the event that they are lost or damaged. Carefully consider the value of your items when listing them in your policy. It’s also critical to periodically update your scheduled and unscheduled coverage as you make significant purchases to ensure you’re fully protected and receive the full value of your items should the unexpected occur.
Mind the Gap – Gaps in coverage can occur when separate transit and destination policies are purchased and can be eliminated by packaged policies.
Making the Journey – Transit insurance is an important part of any international move. Your property has a greater risk of becoming lost or broken while it’s transported from one location to another. It is advisable to find a personal property policy that includes transit insurance, to avoid any gaps in coverage. If a claim occurs during the moving process, it is difficult to prove when the loss took place – during shipping, while in storage, in customs, or while the boxes were in transit to your residence.
Save the Date – It’s important to be mindful of the coverage effective date. If you’re cancelling your current homeowner or property coverage, the effective date of the new international policy should be the same as the cancellation date to help prevent a gap in coverage.