There are three main types of property insurance; contents, building and landlord insurance.
Contents insurance covers all of your personal belongings inside your home. This is usually based upon you own estimated value of your belongings. If you have a theft or disaster in your house then you will receive coverage up to the limit of your policy. However individual items may be only have cover up to a set amount and any extraordinary items such as artwork, wedding rings and some technology items will need special cover along with items in your garden.
In addition to home cover your contents insurance may cover loss or theft of items outside of your home as part of your policy or for an additional fee.
Building insurance covers any damage to your house from events such as fire flood and even natural disasters. If your house is damaged then you can face a vast array of costs not only pertaining from the repair work but also if you need to find temporary accommodation while the repair work is completed.
Cover from natural disasters may not be included in some countries and in high risk areas may come with a high premium. However in high risk areas it is a necessity to take out the additional cover as you could lose everything should the worst happen.
In addition to buildings cover many insurers will help pay for the cost of rehousing tenants and pay for loss of earnings should your property become unliveable following an insured event such as a flood or fire. Cover is also extended to damage your property or your contents either caused accidently or maliciously by tenants or in the event of a burglary.
Public Liability cover is important in case a claim is made against you by either a tenant or a workmen following an injury sustained at your property. Many policies will also cover you for tenant default allowing you to cover mortgage payments if such an event or disagreement occur.
Vacant House Insurance
Alternatively some expats may want to seal their home while they live abroad. In this situation, you will need vacant house insurance.
While your home is left empty it faces many of the risks that it faces while it is inhabited such as fire and flood damage. This damage is also likely to be accentuated if the property is empty as the damage can increase the longer it is undetected. Risks such as theft and squatting are also higher as emoty properties make for much easier targets.
Standard home insurance is normally invalid if a property is left vacant for more than a month, Therefore it is important to take out the correct type of insurance to protect your property.