According to recent calculations by the United States Department of State, there are approximately 6.6 million Americans living abroad and it is estimated by the National Association of Realtors that there are approximately half a million homes owned by Americans overseas. Whether those homes are an expatriate’s primary residence or just an overseas vacation home, there is a need for home insurance and there are several places that American citizens can consider when shopping for international home insurance.
First, Think Local
If you own a home overseas, look for an insurance company local to that area as most American insurance companies will not insure a home outside of the U.S. One of the easiest ways to find a reputable insurance company overseas is to choose a very large multinational corporation. For example, divisions of AIG offer overseas home insurance in multiple countries. Another way to find an international insurer in your area is to ask for a referral from your real estate broker or mortgage lender who most likely know the area better than you do.
Seek Renter’s Insurance If You’re Renting
If you are an American renting a home overseas, you should consider acquiring renter’s insurance to protect your valuables against fire, theft and other calamities. For many members of the military serving overseas in places such as South Korea, England, Germany and other locations, large American insurers such as USAA and State Farm may be able to provide you with renter’s insurance overseas depending on the location. The easiest place to start your hunt for international renter’s insurance your current domestic insurer.
Common Hurdles
Overseas home insurance can be very tricky to deal with. There are many hurdles that a potential homeowner faces abroad that are not present domestically such as immature insurance markets with young local insurance companies, unstable political environments, insurance regulated at the local jurisdiction levels, a language barrier and many other difficulties that can present themselves.
However, the daunting task of securing international home insurance is not insurmountable. In fact, you can successfully find home insurance to meet your needs with just a little research, patience and understanding.
Hank Coleman is the founder of the personal finance blog Money Q & A and several other financial websites. He is a freelance writer, entrepreneur, and professional in the government sector. Hank holds a Bachelor’s Degree in Business Administration, a Master’s Degree in Finance and is currently studying for his Certified Financial Planner (CFP) credentials. Be sure to follow him on Twitter.
