There is no doubt that buying a property overseas is a big investment and one no one takes lightly, but many people get so caught up in the hunt for their place in the sun here in the Algarve that they forget to insure it after purchasing.
To avoid any unnecessary heartache it is important you insure your property as soon as possible after you have purchased your property.If you are financing the purchase of your property by a mortgage, the bank or lender will insist on house insurance. However double check the small print as this may not cover the contents of your property.
Although the Algarve has a relatively low crime rate, there are other things than burglary you will have to watch out for including fires and floods.
The Algarve is also is classified as being situated within an earthquake zone and although there have no major quakes in living memory, it is important any insurance you take out cover damage caused by this sort of natural disaster.
Regardless of whether your Algarve home is used as a weekend retreat or for commercial holiday letting, it is vital that you protect your property with adequate insurance.
Most insurers see bigger risks associated with holiday homes because they are left unoccupied for long periods, prone to burglary and weather damage. Therefore, insuring your home in the Algarve with a policy that doesn't include strict terms can be difficult.
Don't be tempted to use a standard house insurance policy and not disclose that the property is a holiday home, because holiday home insurers have the right not to pay if you make a claim and void the insurance. The best option is a specialist insurance policy that is tailored for holiday letting and occasional use.