Relocation insurance should form an important consideration for anyone who is considering moving abroad. In this, the second part of our two part series on expat insurance, we take a look at travel insurance, legal insurance and household insurance.
If you haven’t already done so, make sure you read part one of our guide to expatriate insurance.
Worldwide travel insurance
Worldwide travel insurance is one major relocation insurance group that many expats overlook when moving abroad. They assume that medical insurance will be sufficient cover but it really isn’t. The latter doesn’t cover you for actually getting to your chosen destination and you won’t be covered in your host country for any injuries or mishaps you encountered along the way.
At the very minimum you should ensure that you have a single trip insurance policy that covers the travel involved in your initial move overseas. However, the majority of expats opt for annual travel insurance that will cover multiple trips because most expats do like to explore neighboring countries when living overseas and like to know that they are covered for any urgent or last minute travel back to their home country. Regardless of whether you opt for a single trip or annual cover make sure that you disclose to your insurer that you will be using the insurance to cover a move abroad and double check that your policy will still be honored if you are resident in a different country.
Legal insurance requirements vary from country to country and you will need to fully understand the types of insurances that are obligated in your host country before you move abroad. In the majority of countries you will find that car insurance is mandatory if you wish to own or drive a vehicle. Other types of insurance that you may need include the following:
- Personal indemnity insurance
- Earthquake cover
- Fire insurance
- Residential premises insurance, etc.
In order to fully understand the insurance levels that you will be required to secure in your host country please see the individual relocation guide. Each guide contains everything you need to know about relocation insurance and staying within the law in major cities throughout the world.
Household effects insurance
Transportation of household effects
If you are planning on shipping your personal belongings when you move overseas that you will need to secure some type of transportation insurance. Usually your relocation firm will offer to arrange this on your behalf. However, it is always worthwhile to get quotes from alternative sources in order to ensure that you get the best possible deal and a policy that is right for your needs.
When you arrange the insurance for transportation of property, you will be asked to complete a form that lists each of the items being shipped and the estimated value. Make sure that you are truthful on the form as, in the event something does go wrong, you want the peace of mind that you can replace the goods. Keep a copy of the insurance inventory for yourself as well as providing one to the insurer.
You can expect to have to pay an excess on any item lost or damaged and you may find that there is a limitation placed on the maximum value an individual item can be insured for. It is crucial that you ensure your goods are insured for both transportation and storage once they arrive in your host country if you have not already secured somewhere to live and are unable to confirm a delivery date. Also check that the insurance policy has a validity period that can cover any storage time as you do not want to find, when you unpack your goods six weeks after transportation and find that they are damaged, that you are no longer able to make a claim.
Insurance of property abroad
It is always advisable to secure household contents insurance when living overseas in the same way that you would wish to insure your property at home. Make sure you shop around and select an insurer that has an established reputation. Study the available policies carefully and make sure that you fully understand the different options available to you. Never assume that the policies on offer will be the same as those in your home country, even if you are using an international insurer. Take care to understand the excesses and exclusions and how they may impact your belongings.
If you want to find specific information about expat insurance in your chosen location then please see our international relocation guides. Each guide contains everything you need to know about living in popular expat destinations throughout the world, including the following useful topics:
- Medical facilities / Health insurance
» Health risks and vaccinations
» Health coverage
» Doctors and hospitals
» » Main facilities and practitioners
» » Hospital admission process
» » Ambulance
For more free information about expatriate insurance, please see our free guide to expat insurance in our expat manual.