For most people, buying a holiday home is an escape from everyday life and a chance to head off to the sun. For others it’s an investment that will hopefully grow in value and ensure a prosperous future.

Having secured the dream it is important that you do something about protecting the property – and part of that means insuring the place, granted, it isn’t particularly exciting, but it is vital.

So where to start? Well, insurance in Cyprus operates in much the same way as it does in the UK – you just need to be aware of the pitfalls and make sure you have adequate cover.

Home or Away?

One of the first questions people ask me is should they use a UK insurance company or broker or is it better to insure in Cyprus where you have bought the property? Simply, there is no right or wrong answer – you can use either route, but there are some important things to consider.

Inevitably one of the biggest issues to consider is the language. It is important to know what your insurance policy covers - if for example your insurance documentation is in Greek, it might be difficult to understand exactly what cover you are buying. It may be better to use a UK based insurer or broker where you can understand the language, receive documentation in English, pay the premium and receive any claims payments in sterling.

Cost is usually an important consideration when buying insurance - many local insurance policies tend to be cheaper than products offered by UK insurers. But a word of caution - however tempting it is to try and save a few pounds on the cost of insurance, you should balance this by looking at exactly what is covered by the policy you are buying.

How much should you insure for?

You should insure for the rebuilding cost of your property – this is often less than the market value of the property. You should always allow for the cost of re-building all outbuildings, swimming pools, gate and fences.

Don’t be tempted to cut corners and insure for less than the true value of rebuilding. If you have to make a claim your insurer may not settle your claim in full if you haven’t insured for the correct amount.

If you are having trouble working out how much you should insure for, a local builder or surveyor may be able to help you. If you had a survey undertaken when you purchased the property it is worth checking the paperwork – it may have included an insurance valuation.

If you have an apartment contained within a complex or apartment block you may have some buildings insurance cover included within your service fees. However, if insurance is included, be sure to check the detail. Often cover only extends to communal areas such as entrance halls and swimming pools. Kitchen units and fitted wardrobes within your own apartment are very rarely covered.

UK insurers tend to offer wider cover and include useful extras like emergency travel cover, so that if your property suffers damage your costs for travelling to supervise repairs will be covered.

Letting Your Property?

You should also be aware that some local policies will contain exclusions if you are letting out your property. Some policies will not cover damage caused by tenants.

Cover for loss of rent is particularly important if you are using rental income to contribute towards mortgage repayments or if your property is operated on a commercial basis. Make sure the insurance is sufficient so that, in the event that your property suffers damage and it is not possible to let the property, you will be covered for loss of rental earnings.

Alternative accommodation costs are also covered by some policies. This means that if the property is uninhabitable, you or your guests can claim the cost of renting a similar home or a hotel stay.

Earthquakes are not unknown in Cyprus, but usually go un-noticed. Buildings are earthquake resistant, and planning permission is given only if the building is designed in such a way. Insurance companies will secure your property against earthquakes, so make sure your policy includes this important feature. It is also worth checking any clauses that may apply whilst your property is unoccupied, such as turning off utility supplies and removing valuables, money and credit cards.

If you would like any further information on Property Insurance for Cyprus or if you would like to be put in contact with the provider I’ve found to ‘tick all the boxes’, please just drop me an http://www.cyprusbuyingguide.com/resource.htm with your contact number and a brief description of your requirements. I will then arrange for someone to contact you directly to discuss your requirement in more detail.