Raging Fires Threaten Overseas Homes
Following the blazing forest fires that caused destruction across the Southern Almeria region of Spain last week, overseas property owners are urged to check that they are adequately insured.
Thankfully, it appears that none of the Spanish property owners who were forced to evacuate their homes suffered losses, but it highlights the destruction that wildfires can cause.
Damage caused by fire can be horrendous and very expensive to repair, often a complete rebuild is required. There are concerns that thousands of second home owners are significantly underinsured, as the ‘estimated’ buildings sum insured does not reflect the accurate cost of rebuilding their property. More worryingly, there are reports that homeowners are lowering their sums insured to reduce premiums during the recession. Having the correct sums insured on a holiday home is vital to ensure that you receive the full amount in the event of a claim.
Is your buildings sum insured correct? It’s important to include the replacement value of any outbuildings and swimming pools when calculating sums insured. Don’t forget to also check your contents sum insured is correct. As a rule of thumb, contents are everything you would take with you if you moved house.
Also, if you insure with a foreign insurance company check that arson is covered as we have come across situations where it is not, and unfortunately some fires are started deliberately.
If you need any advice on calculating sums insured, read our Spanish Insurance guide or please give Schofields a call.
Update
Further fires have ravaged Europe this summer, including those on the Spanish island of La Palma in the canaries, which forced 4000 people to flee their homes. Unfortunately some returned to find their properties reduced to ashes. View photos of the devastation caused.
Fires in Mojácar and Portugal have also caused devastation.