Insurance - Buying British Insurance In France
Is it really wise to buy British insurance for a French property? Lee Rhodes explains why he believes it is...
We might criticise many facets of our way of life compared with other European countries, but one thing we do get right in Britain is buildings and contents insurance.
Overseas properties – and France is no exception – need very different insurance from British homes, and proper insurance is vital to safeguard the viability of your investment.
We have a strong culture of insurance in the UK, which has bred quality products that provide broad levels of cover and service in the event of a claim. What’s more, our Financial Services Authority provides higher levels of consumer protection than exists abroad. And while we tend to take accidental damage for granted, it is not always available in France.
You will find that most insurance excludes cover if the property is unoccupied for more than 30 consecutive days. There are often stipulations about the property being visited every week and on special shutters being installed. Some insurers also insist the water system is drained during periods of unoccupancy, or the property is heated constantly to a certain minimum temperature. If your French property is hundreds of miles away from your UK home, such requirements can be inconvenient.
You also need to take into account what happens in the event of a claim.Will your insurer be capable of sorting a claim fast and efficiently when you are a long way from your French property? Does your insurer have the authority to manage claims and make decisions? How quickly will you receive a settlement and do you have to fill out claims in French? Also, some French insurers require criminal claims to be reported to the police within 24 hours, which again, is not convenient if you are in the UK.
Buying insurance in the UK means that in the event of a claim, it will be handled in the UK – if you buy in France, there may be language barriers. Understanding the specifics of cover levels and making a claim in French can understandably be difficult.
In my opinion, you are invariably better off buying a policy in the UK, as it is written in plain English and claims are resolved by home-based experts. Under the terms of a UK policy, if you are a UK resident, UK law applies, so you don’t have to worry about complications regarding French laws. You will also enjoy greater protection if the insurer is regulated by the Financial Services Authority.
You may end up paying 25% more for UK cover but in the long run I believe it represents excellent value. The best advice is to obtain full details of any proposed policy in English and compare the details of the exact cover on offer with that of a UK-sourced policy.
Lee Rhodes, Quantum Underwriting Solutions (specialist insurance broker dealing exclusively with the personal insurance needs of affluent clients. Quantum insures properties all over Europe) Tel: 0870 402 1900 www.quantumplc.com