Accidental damage
An indispensable extra layer of cover that will safeguard you
against costly breakages. At Towergate we automatically include
accidental cover as part of both our buildings and contents
packages when the property is occupied by the insured and family.
No additional premium necessary.
Buildings insurance
Buildings insurance covers the cost of rebuilding your holiday
home as it stands - not in as-new condition. This is a totally
different valuation than the current market value of your home.
Don't forget your outbuildings including sheds and garages. Even
swimming pools, tennis courts, terraces and patios should be taken
into consideration in your insurance calculation.
Caveat emptor
Let the buyer beware! Good advice for us all. It's worth
remembering that, as the buyer, it's up to you - not the seller -
to make sure everything is on the up-and-up. Certainly the seller
is obliged not to mislead you in any way - but after that, you're
on your own.
Consorcio
So you've insured against every conceivable thing and the
unexpected happens! What then? Fortunately for Spanish property
owners, the ‘cover of extraordinary risks' (known as consorcio)
does insure you against some additional, extraordinary occurrences.
Check with Towergate for the latest information.
Contents insurance
You're not obliged to take out any contents insurance - but bear
in mind that Towergate will cover you against theft and accidental
damage as well as damage by fire, flood, storm and escape of water.
Tot up the value of your appliances, clothes and furniture and see
how much you stand to lose before you dismiss second home contents
insurance out of hand.
Current market value
A useful marker for insurance purposes. The current market value
refers to the expected sale price of your holiday home if it were
to be put on the market today. This can be ‘guesstimated' by
averaging out recent sale prices on comparable properties.
Earthquake
Earthquake damage is usually covered as standard in a home
insurance policy. When it comes to insuring your holiday home be
warned that earthquake cover is not available at all in Italy and
Greece, and comes with a higher excess in Southern Cyprus, Portugal
and Bulgaria.
Emergency travel
Towergate's emergency travel scheme takes all the stress out of
owning an overseas holiday home. In the event of you needing to get
home quickly, we'll make sure you do. It's all part and parcel of
our service. Just call us to find out more.
Endorsements
An endorsement refers to any variation or addition to the terms
of your policy. You can refer to your policy statement for a list
of any endorsements that apply in your case. Don't worry - there is
nothing untoward about having endorsements on your statement - and
you can always speak to a Towergate advisor for further
clarification.
Escape of water
It's an important part of any home insurance policy – escape of
water is one of the biggest sources of insurance claims. Just so
you're clear - escape of water refers to leakage from fixed water
tanks, apparatus (e.g. washing machine) or pipes.
Excess
The excess is the amount of money you are required to pay in the
event of a claim. The higher it is, the more you will have to pay
when claiming - but you will enjoy a lower premium. Be careful that
your excess is appropriate for your level of insurance. Talk to
Towergate if you're not sure.
High risk
Several factors may determine if a building is situated in a
‘high risk' area: e.g. susceptibility to floods or earthquakes;
even desirability of location. The important thing to remember is
that failure to disclose any information pertaining to risk may
help keep your premiums down, but could void your policy.
Index linking
Index linking is a given in any Towergate insurance policy. It
ensures that the sum you insure your building or property for is
updated every year to reflect economic variations – giving you the
reassurance of knowing your insurance value is going up in line
with inflation, not down.
Leasehold
Leasehold gives you the right to occupy the land on which the
property stands for a fixed number of years. Leasehold is generally
cheaper than freehold as it transfers the right of possession, not
ownership. As a leaseholder you will also be expected to pay ground
rent.
Malicious damage
Cover for malicious damage is included as standard in our
insurance packages. That gives you supreme peace of mind that any
damage caused by ‘malicious persons' will be covered in the event
that your home is broken into, or any damage caused to the exterior
by such persons.
Material fact
A material fact is a piece of information that would directly
influence an insurer in assessing and setting your premium - and
must be disclosed. Failure to divulge any material fact could
invalidate your policy. Safety first - if you're in any doubt as to
whether something constitutes a material fact, talk to
Towergate.
Natural catastrophe
In France there are essentially two categories of natural perils
(those that are insurable and those that aren't). Like the Spanish
consorcio scheme, the Natural Catastrophe system (which is partly
funded by taxes) provides a level of cover against natural
occurrences that are otherwise not covered by insurance policies in
France (e.g. avalanche, flood and earthquake).
New for old
Your contents will be insured on a ‘new for old' basis. In other
words, the insurance valuation will reflect what it would cost to
buy the items as new. All items are replaced as new (less an amount
for wear, tear and depreciation for clothing and household
linen).
Non standard construction
The very uniqueness of your holiday home might also have a
unique bearing on your insurance costs. Bear in mind that any
property built from non-standard materials (anything other than
brick walls and tiled roofs in fact) will need to be declared to
your insurer so that they can make an accurate assessment.
Occupier's liability
Who is responsible if a visitor suffers an accident in your
holiday home? As occupier (irrespective of whether you own the
property) you carry a duty of care to protect their safety. It is
your responsibility to ensure that the premises are reasonably safe
and free from danger.
Overseas assist helpline
All Towergate insurance customers enjoy round-the-clock access
to our English-speaking helpline. Whatever the problem, we provide
informed easy-to-understand answers! It's a very reassuring service
that means no matter where you're based, we're only ever a phone
call away.
Personal liability
Don't leave home without it! Personal liability insurance covers
any amount that you are required to pay a third party by way of
compensation for accidents befalling them (for which you are
responsible) or for any damage you have caused to their
property.
Policy
Policy is the name sometimes given to your contract of
insurance. It refers to the level of coverage that you have agreed
with your insurer, outlines the terms, and details any particular
conditions that you need to be made aware of, or that you need to
make your insurer aware of.
Rebuilding costs
When you're assessing the rebuild cost of your property for
insurance purposes, don't quote the current market value. Check
your lender's valuation report if you're buying the property;
otherwise get a surveyor to assess it. Or you can do it yourself:
measure the total floor area, then multiply by the cost per square
foot (which depends on where the house is located.) Talk to
Towergate for more information.
Reinstatement
Part of the charm of many holiday homes is that they're of older
construction - but older homes bring with them certain problems. In
the event of damage, restoration costs are potentially going to be
much higher. Any period features (demanding specialist attention)
will bring your costs up and must be adequately covered in your
policy.
Settlement
The settlement is the pay out you receive at the resolution of a
claim, and in line with the stipulations of your policy. Remember
that a settlement is affected by the excess you choose, and is
dependent on you supplying your insurer with accurate and
up-to-date information.
Structural survey
A qualified surveyor should conduct a thorough examination of
the property you intend to buy. They will check that the interior
and exterior match the minimum requirements for a lender to make a
mortgage offer. (The report can be quite long - sometimes in excess
of 20 pages - but do be sure to check out the liability clauses, if
any.)
Subsidence
Subsidence refers to movements in the earth caused by geological
or man-made factors. It can be a serious problem for home owners -
causing properties to sink as the supporting earth or concrete is
disturbed. If your house is a subsidence risk (see risk post codes)
it can make it harder to insure - contact Towergate for more
information.
Underwriting
Underwriting is the process that insurers go through when
assessing any new risk for insurance cover. They have to consider
any property risks or material facts that have been brought to
their attention, and must also review your ability to meet any
required payments.
Vacant possession
If your holiday property specifies vacant possession, it simply
means that it will be unoccupied on, or before the sale completion
date, ready for you to move in.
