Home insurance for a property abroad: non-resident guide

Buying a flat or house abroad usually ends with a signature, and insurance is often arranged in a hurry or not at all. For a non-resident owner this is a risk: the property stands empty for months, you are far away, and a burst pipe or a storm can do a lot of damage before anyone notices. This guide explains what a policy normally consists of, what to check, and how the state natural-hazard schemes in Spain and France fit in.

Building and contents are separate

Most policies split the cover in two. Building cover (the structure, roof, walls, fixed installations, often fixed kitchen and bathroom fittings) and contents cover (furniture, appliances, personal belongings). If you own a flat in an apartment block, the community usually insures the common parts and the structure of the building, but this does not replace your own policy for the interior. Ask in writing what the community policy covers and what it does not.

Check the sum insured. It should reflect the cost of rebuilding or refitting, not the purchase price: the price includes land and location, the rebuilding cost does not. Under-insurance can lead the insurer to reduce a payout proportionally, so ask how the policy treats it.

Liability

Owner's liability cover pays for damage you cause to others, for example water leaking into the flat below or a tile falling from a balcony. For a flat that stands empty this is often the most expensive risk, because a leak in your unit damages a neighbour's property and the claim lands on you. Check the liability limit and whether it is included or an optional extra.

Natural hazards: flood, earthquake, storm, wildfire

Rules differ by country, so do not assume a standard policy covers everything.

• Spain. Extraordinary risks such as floods, earthquakes, tsunamis, volcanic eruptions and atypical cyclonic storms are covered by the Consorcio de Compensación de Seguros, a state body. It works through a surcharge that is added to the premium of property policies, so the cover normally comes with your private policy. Check that your policy shows the Consorcio surcharge, and read the Consorcio's own information at consorseguros.es. Conditions and exclusions apply, so ask your insurer what it handles itself and what goes to the Consorcio.
• France. The natural-disaster regime (CatNat) is built into property damage policies: according to published sources it cannot be bought on its own, and an insurer cannot refuse it on such a contract. It pays out after the authorities declare a state of natural disaster for the area. The surcharge was reported to have risen from 12% to 20% from 1 January 2025, which is one reason French premiums have gone up. Check current rules on service-public.fr.
• Wildfire and storm. We did not find a separate state scheme for wildfire in the countries we reviewed. Fire is normally part of the basic cover, but exclusions around vegetation, access and brush clearance can exist in wildfire-prone areas. Read the exclusions.
• Other countries. In Italy, Greece, Portugal, Turkey, Cyprus and elsewhere, floods, earthquakes and storms are often optional extensions or priced by risk zone. Ask directly: is flood included, is earthquake included, what is the deductible.

Insurance for a rented-out home

If you rent the property out, tell the insurer. A standard home policy may not cover a property let to tenants, and cover for short-term holiday letting is often a separate product. Ask about: damage by tenants, loss of rent, liability towards guests, and whether the policy requires a licence for tourist rental. Your tenant's own insurance does not protect your building. Our country pages on short-term rental rules explain licences, and the article on short-term and long-term rental covers the choice.

What a mortgage bank usually requires

If you finance the purchase with a loan, the bank will usually require building insurance with the bank named as beneficiary, and may ask for annual proof of renewal. Some banks also sell their own package and link it to the rate. You are normally free to choose another insurer if the cover is equivalent, but check this with the lender before signing. See mortgages for non-residents for the wider picture.

Claims from abroad

• Keep the policy, the insurer's local phone number and a local contact (caretaker, agent, neighbour) together, in a place you can reach on your phone.
• Report the damage quickly. Policies often set a short notification period, so find it in the contract.
• Photograph before you repair or clean, and keep damaged items if the insurer asks for them.
• Make urgent repairs to limit the damage (stop water, secure a broken window), and keep invoices.
• Ask whether the insurer sends its own expert and whether someone must be present to let him in. A trusted local person with written authorisation can do this.

How to choose

• Compare cover, not just price: sum insured, deductible, exclusions, liability limit.
• Ask whether the policy has conditions for unoccupied homes, for example that the property must not be empty longer than a set number of days, or that water must be turned off.
• Check that the policy language and claims line work in a language you can use, or that you have a local adviser.
• Get quotes in the country's local market, and from brokers that deal with foreign owners.
• Review the policy every year when it renews, including the sum insured.

FAQ

Do I have to insure a property abroad? It depends on the country and whether there is a mortgage; a lender will normally require it, and a flat in a community may be required to carry liability cover. Even where it is not required, an uninsured property is a risk you carry alone.

Does the community policy replace mine? Usually not. It covers the structure and common parts; the interior, contents and your liability are normally yours to insure. Ask for a copy of the community policy.

Is flood covered automatically? In Spain and France the state schemes work through your property policy, but details differ. In other countries it may be an optional extension. Ask and get the answer in writing.

Can an empty home be insured? Yes, but check conditions on vacancy and rental use, which can limit the payout.

Will my policy cover rented-out periods? Not necessarily. Tell the insurer and ask for it in the policy.

How we help

D.H. Realting is a trilingual platform (English, Russian, Polish) that finds properties abroad and coordinates independent local lawyers and tax advisers. We can introduce you to local insurance brokers and the right professional for your country. This text is informational and is not legal, tax or investment advice; rules and policy terms change, so verify current conditions with the insurer and a local adviser.