Buying property abroad: should you use a broker to properly insure your home?

Introduction: a decision that goes far beyond a simple acquisition

Buying a villa in Spain, a chalet in Switzerland, or an apartment in Dubai is a common step for many wealthy investors. But behind the dream lies a complex reality: properly insuring a property abroad is anything but straightforward. Regulations differ from country to country, mandatory coverages vary, and risks (fire, natural disasters, liability) must be secured without gaps.

Should you rely on a specialized broker capable of anticipating these pitfalls, or manage it directly with a local insurer? The answer depends on your profile—but also on the level of risk you are willing to take. And while insufficient coverage may seem harmless at first, the financial and legal consequences can be devastating.

1. The specific challenges of insuring property abroad

1.1. A patchwork of national regulations

Every country has its own rules. In France, property insurance is not mandatory for homeowners, but it is for tenants. In Spain, fire insurance is often integrated into mortgage contracts. In the UAE, buyers must subscribe to specific coverage for properties located in luxury residences.

Concrete example: In Italy, the law imposes minimum guarantees for condominiums, but they do not cover major risks such as earthquakes, which are frequent in certain regions. An uninformed investor could therefore be exposed to significant losses.

1.2. Risks that are often underestimated

A chalet in Gstaad is not exposed to the same risks as a villa by the sea in Florida. Tropical storms, wildfires, or floods in Mediterranean areas are all very real threats. Yet many local insurers offer standardized contracts rarely adapted to high-value properties.

According to the Swiss Re Institute, global economic losses linked to natural disasters reached $275 billion in 2022, with only 45% insured. For a HNWI property owner, the line between safety and vulnerability often lies in the quality of their insurance.

1.3. The multi-property challenge

HNWI and UHNWI clients rarely own a single property. A villa in Marbella, an apartment in London, a penthouse in New York—each comes with its own insurance regime, often contradictory. Cumulative local policies increase the risk of gaps in coverage, or on the contrary, costly overlaps.

2. Relying on a local insurer: convenience or trap?

2.1. The illusion of proximity

Many buyers turn to a local bank or the insurer recommended by their notary. This is often the quickest path. But it comes with limitations:

• Standardized policies: designed for standard homes, not for assets that include art, wine cellars, or high-tech installations.
• Foreign-language clauses: misinterpretations may cause disputes in case of claims.
• Lack of coordination: each property is handled separately, with no global vision.

2.2. Case study: villa in Spain and secondary residence in Switzerland

Take the example of a client owning a villa in Marbella and an apartment in Zurich. The Spanish insurer covered fire but excluded floods. In Switzerland, the policy included natural disasters but excluded some theft-related incidents, frequent in tourist areas. The result: two expensive policies, yet still vulnerable to uncovered risks.

3. The role of the international broker: a true conductor

3.1. A transversal view of risks

Unlike a local insurer, the specialized broker analyzes the entire real estate portfolio, taking into account:

• the real market value of the properties (often underestimated locally),
• specific environmental risks,
• fiscal and legal frameworks,
• interactions with other assets (yachts, art collections, vehicles).

3.2. Access to international markets

An international broker is not limited to local offers. They can reach out to specialized insurers in London, Zurich, or Singapore who provide high-end coverage. For example:

• Lloyd’s of London: historical expertise in unusual or complex risks.
• Zurich Insurance: tailored solutions for high-value assets.
• AXA XL: global coverage with bespoke extensions.
• Hiscox: renowned for expertise in private wealth and exceptional assets.

3.3. The example of an art collector

One client purchased a townhouse in Lisbon. The value of the property included not only the building, but also an art collection worth more than €10M. Local insurers offered only partial coverage. By centralizing through an international broker, we secured a single policy covering:

• the building,
• the contents (furniture, art, jewelry),
• international liability,
• risks linked to temporary transport of artworks.

4. How IFO Global approaches these complex situations

At IFO Global, we know that for a HNWI, a property is never just real estate. It is a patrimonial asset, often tied to family history, an international lifestyle, or tax and succession planning.

4.1. A unique and integrated approach

• A single point of contact for all countries: whether your properties are in Europe, the Middle East, or the Americas, we centralize their management.
• Possibility of insuring multiple properties under one single policy (for example, three residences in three different cities).
• Cross-border analysis: we identify vulnerabilities within your current insurance setup.
• Optimization of coverage and premiums: portfolio consolidation not only eliminates duplications but often results in more competitive pricing.

4.2. A discreet and confidential service

Confidentiality is paramount. Our exchanges and solutions remain protected, away from unnecessary disclosure.

4.3. Case study: an expatriate client

A French entrepreneur based in Dubai owned a penthouse in the UAE, a chalet in Megève, and a luxury apartment in Paris. Each local policy had exclusions. After thorough analysis, we implemented a global coverage solution which not only secured his assets but also reduced his overall premiums by 12%, thanks to portfolio consolidation.

5. Criteria to determine whether you should use a broker

• You own several properties in different countries.
• Your property’s value exceeds €1 million.
• You own collections or unusual assets.
• You are frequently internationally mobile and need global coverage.
• You want simplicity and centralization instead of fragmented local policies.

If at least two of these criteria apply to your situation, working with an international broker is not an option—it is a necessity.

Conclusion: securing an asset, protecting a lifestyle

Buying property abroad is an exciting step, but also a legal and insurance challenge. The temptation to rely on a local solution may seem convenient, but it often hides vulnerabilities invisible at first glance.

An international broker offers not only stronger coverage but also true peace of mind. At IFO Global, we have built our approach on rigor, discretion, and a deep understanding of the needs of demanding clients.

👉 If you are considering purchasing real estate abroad, or simply wish to ensure your properties are adequately protected, we would be delighted to discuss it with you.