French property, mortgages and home insurance cover
For UK residents considering buying overseas mortgages during the economic downturn, a mortgage in France looks to be a sensible investment option.
Property and mortgage experts are of a view that France has a more stable property market than the UK. When this fact is combined with low mortgage rates and alternative property savings schemes such as leasebacks, it is believed that France is well placed to weather the current recessionary conditions.
Considering a move to France by choosing a French property mortgage and purchasing your dream home abroad? If you are about to start on this journey, or are a part way along it, there is an important aspect about buying an overseas home to bear in mind. insurance cover.
It is important to choose appropriate house insurance to give you peace of mind should you ever need to make a claim while living in France or managing holiday home lettings from the UK.
It can be a mistake to assume that what maybe covered on UK home insurance policies would be mirrored on policies held for homes abroad, with or without holding French mortgages on these properties.
Insurance, property and mortgages in France
Level of cover required for buildings insurance will need to be sufficient to rebuild all structures including terracing and swimming pools. Professional advice could be needed because the market value of a property may not reflect the actual rebuilding costs.
For contents, cover should be sufficient to replace old, second hand items with new ones.
Liability cover that protects the holiday home owner is important should anyone be injured while living at or visiting the property. Such cover would also be required if the property is rented out and employees or guests suffer some kind of injury.
Theft cover for extended periods is likely to be essential for properties that are unoccupied for long amounts of time which can be the case for UK residents who use their holiday homes intermittently.
Making a claim can also be an issue. Insuring with local French companies could make things difficult when trying to settle claims where the policyholder is not fluent in the French language.
French property, mortgages and insurance services
Conti, the leading UK overseas mortgages company, is teamed up with a specialist insurance broker to provide excellent cover at affordable prices. Click on our ‘insurance services’ button on the right of this page for more information.
If you have a dream home or holiday let in France – whether you have a French property mortgage or not – please call our broker on 0870 1217 590 quoting Conti Financial Services.
0800 970 0985