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Home Insurance In Bulgaria

According to a recent article in Overseas Property Professionals Magazine, about 10 000 Irish investors have bought property in Bulgaria during the last few years.

The National Statistic shows a much higher figure for British owners of holiday homes in the country.

What You Need to Know

After acquiring an asset in a foreign country it is good to be acquainted with the Laws that concern and regulate the real estate matters and with the opportunities for access to all the supporting industries and services needed for maintaining the asset.

The good care of a property often includes the purchase of home insurance.

In Bulgaria the foreign investors have access only to limited number of insurance products: property insurance and medical insurance (including or excluding dental care services).

The home insurance for foreigners is a product offered by many Bulgarian insurers. The most important thing when you choose the company is to have references about it that in case of damages, it steps in the obligation to deal and cover the claims.

From our long time experience in handling foreign enquiries about property insurances, we would advise that the most preferred insurance includes the following covers: Fire, natural perils, contents, burglary, third party liability and windows breakage. This is a basic package that many foreign purchasers choose when buying insurance.

Substantial groups of foreign property owners include lessor's liability cover or accidental damage cover in their basis package, as they rent out their units and would like to secure their public liability for directly caused personal damages and damages to property. When arising out of death or bodily injury of their lessee one condition is that the claim for damages has been raised during the insurance period.

The limits for the lessor's liability vary in the range 20000 EUR - 75000 EUR. It is important to be underlined that in Bulgaria no insurance company offers public liability with limit of 5million EUR. The main reason for this is that the domestic insurance market is smaller than the UK one and in case of a claim; such limit could not be considered. As a substitute for this, the Bulgarian insurers offer third party liability and lessor's liability.

The foreign buyers of home insurance could be split into two groups. One of them is formed by property owners who have a mortgage with a Bulgarian bank and should secure insurance on the property for every single year of the mortgage term. Often the various banks do have different requirements on what the policy should cover. In most of the cases the basic cover for building should be the outstanding loan multiplied by % figure (between 120%- 140%).
The easiest way to sort your insurance in the way that it complies with your lender's requirements is to use a company that is acquainted with those conditions and has a good relationship with the lender. As once issued, your insurance should be submitted to the plighted person that is taking care of your record in the bank.

The other group of foreign real estate is owners who do not have a mortgage but would like their home insured against problems. These people insure at their initial purchase price. Nowadays, with the huge decline of property prices it can be a confusing choice whether to insure at the price at you purchased the property or consider its current market price.

What you also should know is that in Bulgaria many of the insurers are part of multinational companies and it is always better to refer to such institutions because of the professionalism and the security they provide.

Written by Home Point BG