Latent Defects Insurance When purchasing a property, one of the common concerns is the quality of the build as construction methods are not the same worldwide. Latent Defects Insurance helps minimise risk exposure from inadequately constructed buildings, and provides cover comparable to the NHBC (National House Building Council) guarantee on UK new build property. When buying off-plan or new build, if insurance against defects is not already provided for you by the developer, you could take this out directly insuring your property against problems that might arise as a result of the standard of build. This could include damage to your property caused by defective design, workmanship or materials becoming apparent for up to 10 years after the practical completion of building work.


Possessions such as appliances, bikes and


furniture will need to be covered under a contents policy – the value of these items should be calculated on a “new for old” basis. Anyone buying in a community or development should check what their communal insurance includes – usually it’s just the communal parts, the build quality of the blocks and nothing beyond your front door.


When it comes to choosing an insurance provider, often the easiest route is to choose a UK based insurer, many of which include public liability insurance - essential if you plan to let your property - with their standard holiday home policy. It’s worth noting that the public liability limit offered by UK companies is usually higher than that offered by local insurers abroad: in Spain you might be covered for up to €300,000, while €5million is not an uncommon limit in the UK. Some UK insurers also include cover for loss of rental income following a claim, as well as emergency travel and accommodation in case you needed to travel to your property in an emergency. Typically, you’ll always pay extra (around ten per cent of the premium) for accidental damage cover, which includes damage not only done by you or guests but also paying tenants. Other benefi ts of a UK insurer include being able to


make payments in Sterling and speak to them in English – some also offer a 24-hour English-speaking helpline to assist with emergency situations in the property.


Title Insurance Buying a property overseas isn’t the same as buying one at home, and Title Insurance is common in most parts of the world where land registration is not as complete or accurate as it is in the UK. What has now become your land may well have had several previous owners so the title will have changed an equal number of times. Title insurance protects you against claims or legal fees associated with any discrepancy, covering the buyer against disputes over ownership, access rights and other common issues such as boundaries. Available on both new build and existing properties there are even bespoke policies for properties with known exposures. This insurance is not restricted to European countries and can also be purchased after completion.


Travel Insurance When travelling regularly overseas an annual policy for you and your family makes sense and saves money against taking out individual trip insurance.


Insurance services are available through the AIPP, for more information see page 53.


Typical insurance premiums


Ë 3-bed villa with pool in the Costa Blanca, Spain, with £10,000-worth of contents and full accidental damage (a/d) cover: £305 (£280 without a/d)


Ë 3-bed townhouse in the Algarve, Portugal, with £10,000-worth of contents and full accidental damage cover: £230 (£210 without a/d)


Ë 2-bed ski apartment in the French Alps with £5,000-worth of contents and full accidental damage cover: £180 (£165 without a/d)


AIPP CONSUMER GUIDE 33


SECTION 3 ESSENTIAL SERVICES


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68