Over 90 per cent of Britons with holiday homes abroad are underinsured
Over 90 per cent of Britons with holiday homes abroad are underinsured
Many British owners of property abroad are underinsured following a change in legislation. The Rome II legislation came into effect this month and owners risk facing challenges in UK courts if they have inadequate public liability insurance.
The change in legislation particularly affects owners of European property, Tonic Insurance told Overseas Property Professional (OPP). As a result of the change, over 90 per cent of Britons with homes overseas are now
underinsured, particularly those who rent out their holiday home to guests.
Insurance cover for
public liability in Europe is traditionally at a very low level. However, should a UK national injure themselves in a European property and both owner and tenant reside in Britain, action can be brought in the UK. Awards in the British courts are often higher than in mainland Europe and typically exceed the level of cover offered by local insurance companies.
Tonic Insurance's chief executive and chairman, John Newman, explained the problem to OPP: "The liability cover for
Spain and
Portugal is often extremely low, frequently in the region of €100,000 to €160,000. This would leave a client very dangerously exposed, as any meaningful claim would potentially exceed this limit."
The company has recently branched out into the overseas market and provides a £5m limit of indemnity for mid range homes to the largest properties, Newman added. Its insurance product provides coverage for
holiday villas in France,
Italy, Spain, Portugal,
Cyprus and
Greece as well as holiday cottages in the UK and
Ireland.
This story was brought to you by holiday
lettings.co.uk, the UK's No.1 for holiday homes worldwide.
Related Stories
Owners of holiday homes in Spain should be inheritance tax aware
FCO in Turkey producing list of reputable property professionals
Property investors in France need to be aware of local risk plans27 January 2009
Print this article
