Homeowners must take out UK-based insurance policies abroad, warns Tonic
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Tracey Scott
Consumers buying insurance for property overseas should look to UK-based firms for cover to ensure they are protected under the Financial Services Compensation Scheme, warns insurance provider Tonic Underwriting.
Research by Tonic found over 90 per cent of Brits insure their overseas property in the local market through a local insurer, which means the policy is not protected under the FSCS.
As a result, Tonic is now teaming up with Brit Insurance to offer an insurance product for properties abroad that are managed in the UK and subject to UK law.
Tonic chairman and chief executive John Newman says: “In our experience we have seen the consequences of inadequate policies on properties abroad. With language barriers and unfamiliar legal systems, overseas home owners cannot be confident their local insurer is financially sound and able to offer them the same level of service expected in the UK.”
