Hello there,

How are things in your world?

We have successfully moved into our lovely new offices. It’s strange, isn’t it? I was sad about the move, and about leaving the riverside, and I must confess that I still do miss our wonderful river view. But there is always a good side to what ever one is dreading: our new offices are lovely AND nearer the shops – NOT good for the bank balance…but lots of fun!

Apart from moving I must tell you I had the most wonderful trip down to the Languedoc Roussillon area a week or so ago. The sun shone, the sea glistened and the palm trees swayed: what can I say, this really is a lovely place to visit with a real “southern” feel to it.

I stayed in a little village north of Bezier but ventured into this little town most evenings to take my “apero” and watch the world go by. Being late August, there were plenty of kids larking about and people strolling up and down the main street, flanked each side by pavement cafes: a real French affair! I got talking to a lovely couple over a glass of kir one evening and we soon found ourselves swapping stories about our respective French homes. They told me a somewhat cautionary tale regarding insurance and how glad they were to have taken out a fully comprehensive policy in plain English – more on this later, read on!

If you would like more information about buying or investing in this area, I just returned and would be happy to discuss it with you. Please call me on 0207 898 0549.

Most of us spend a good deal of time and energy finding their ideal property – and rightly so – and protecting this new acquisition is of vital importance of course. So in this month’s newsletter I am going to talk a little on insurance and OGC's Karen Gilbert has provided an article entitled "it's far better to be safe than sorry!", you will also find a useful foreign currency review by the one and only Charles Purdy, I have a top tip for you regarding protecting your health and my colleague here at OGC reviews travel insurance for you – plus details on the EHIC card.

Lastly I have a special surprise coming up - do read on !

When you have read all this, you should understand several ways to protect your assets - money, time or your health, and of course your future French property.

A cautionary tale about getting your house insured…

One evening as I was watching the world go by and vaguely pondering the meaning of life, ably aided by my glass of rose wine, I got talking to a young couple. They had just bought a little “plain pied” (single storey house) by the sea as a holiday home but love it so much that they are planning to make the move a permanent one. As we were swapping stories about our respective French properties they let me in on a cautionary tale.

They had sensibly taken out full buildings insurance and were pondering whether to spend just a little extra for contents insurance for their home - in the end they did, thank goodness! Literally the day after they had taken possession, one of the water pipes sprang a massive leak causing a fair amount of damage to some of their furniture and possessions. Luckily they had had their policy translated and knew they were covered for the lot, contents and all – phew!

I in turn related the story of my boiler springing a massive leak back in January and we all agreed insurance – though maybe a dull subject – is terribly important, especially when you may not be at your overseas property all the time.

Basic house and contents insurance in France is the “assurance multirisques habitation”. This will include cover against natural disasters as a matter of course. Civil liability insurance “responsabilite civile proprietaire" – is essential and you also need to insure your possessions. Remember too that if you are planning to build on a piece of land you will need to take out an “assurance dommages-ouvrage” – this is compulsory, although you can get around this if the building you are constructing is to be your family’s principal residence.

You can take over the insurance policy from the existing owner but you may wish to tailor it and ‘make your own’. I feel the wisest course of action for foreign buyers is to have your policy written in good old plain English. In any event, you must have your policy in place to present to the notaire before you sign the final “acte de vente”. As for contents insurance, the current market value of the items is usually used to work this out and depreciation is taken into account. The insurers may insist on certain improvements such as shutters being fitted to windows and bars on doors or other security measures. ALWAYS READ THE SMALL PRINT and make sure you are not under-insured.

If there is nothing of particular value in your property you may take out a basic insurance against damage from natural causes, vandalism etc. This is known as “assurance multirisques d’immeuble”. This is used by the “coproprietes” and some owners of blocks of apartments. It will be calculated by the square metre and there should be a clause inserted in which the insurer agrees to rebuild or restore the property to its original state within 2 years in the same style.

When your policy is presented to you, check to see what conditions are set for reporting damage, thefts etc and if there are any exclusions. When my boiler sprang its leak, the first thing I did was take a bunch of photos of it and the ensuing damage. This is always a sensible precaution to take in order to make sure you are paid in full. The insurance company will nearly always send a loss adjuster to report on the damage claimed for and you are entitled to use a court bailiff or another insurance expert, for a fee, to prepare your own report.

Policies are renewed automatically in France and you are given a period of time before the renewal date when you can cancel the policy. Once this date has passed it is too late to cancel. You will receive a warning from the insurer for renewal and you should usually pay within 10 days or so of the set date. Either set up a standing order or keep a written note of the exact date when your policy is up for renewal.

A word of advice: French house insurers often offer cover that is more limited than UK policies. I would strongly advise obtaining your insurance in the UK, have it written in plain English and make it specifically designed for holiday homes in France. We have done a tremendous amount of research to find the best insurers who specialise in property overseas and I would be delighted to help you with all your insurance questions or indeed to find you the best policy. Click on: http://www.francebuyingguide.com/resources.htm to fill in our form and request futher assistance.

'It's far better to be safe than sorry!" by Karen Gilbert

Ok, so you’ve got your dream property overseas…. Now how do you ensure that you protect your investment and keep the dream just how you want it?

Property Insurance isn’t one of the first things which might cross your mind when dreaming of that place in the sun. In fact, it is far from the most exciting consideration - BUT it is one of the most important. Insuring your property correctly will ensure that you protect the future of your investment.

Overseas Property Insurance isn’t just limited to the bricks, mortar and contents of your property, but rather can extend to insuring your rental income and also to insuring against the threat of legal action should any guests have an accident whilst on your property.

This might not make the most enjoyable reading but - as the saying goes -

‘It’s far better to be safe than sorry!’

In fact, I did quite a bit of research before I wrote this piece and I found some unbelievable facts…

• Over 20% of overseas property buyers viewed security of their holiday home as a top concern – above all else.

• Almost 70% of overseas buyers hoped to rent their property out to other holiday makers - BUT just 5 per cent were concerned at the risk of legal action in the face of any accidents by guests on their property.

This makes for a worrying read as I begin to consider the risk which some overseas property owners may leave themselves open to… losing everything or even going to prison…

A basic introduction to insurance…

If you have a mortgage on your property, you will find that buildings insurance will be mandatory. You lender will insist on being covered in the event of flood, storm or any other eventuality* which means that a re-build is necessary.

The guide to cover is based on the cost of re-building your property, excluding land. This cost can be assessed by your insurer, a surveyor or a local architect who could provide you with an estimate.

*It is worth noting here that you should ensure that your policy covers you for earthquakes or similar – as required by the country of purchase. This cover does not always come as standard in insurance policies.

Contents insurance will cover the cost of replacing any items on your property. If the property is your primary residence, the value of its contents may be higher than if it is purely for holiday home use, with your primary residence elsewhere. Also, bear in mind the need for accidental damage cover if other people will be using the property.

As I mentioned earlier, liability insurance is so important for rental properties. If an accident happens to someone who is staying in your property, you could be sued.

Also consider employer’s liability insurance if you intend to have anyone assist you in managing the property, gardening or cleaning.

For buy to let properties, it is possible to insure your rental income. This is typical of property owners whose majority income is linked to their property portfolio and whose tenants are more permanent. Rental income insurance protects the landlord in the event of any periods when potential rental income may be unavoidably lost. Flood damage and unavoidable building works might be two such examples.

If you plan to rent your property to longer term tenants you may also need to insure to cover legal expenses. This could then help to cover any associated legal costs if you were to have a bad tenant who refuses to pay or who you might need to evict.

It’s important that your insurance policy covers you and your property for all eventualities. You may find that a locally bought policy could leave some gaps in the cover. This is where it is extremely important to compare the cover between companies - and between UK based insurers and the cover offered by local policies.

If your property will be vacant for a period of time each year, make sure that your insurance policy covers for this.

Remember that unlike your home in the UK, you might not be able to travel to your overseas property immediately in the event of a problem. Think through what you might do in the event of a burst water pipe in your property abroad. Do you have the contact details of a reputable local plumber? Does someone in the local area hold spare keys to your property?

If your property is in a neighbourhood with other holiday homes, get to know the neighbours and see what they do when they’re away from their property. Do they have a rental management company or does a friend or neighbour look in on the property for them? Get to know your neighbours and see how you can help one another.

With regard to insurance, make sure that all policy wording can be provided for you in English and that the claims and enquiries support teams / phone lines are available in English too. This way you can ensure that in the case of an emergency you can resolve matters swiftly and avoid any language complications.

If you’re renting the property to holiday makers, look around the property carefully and take note of any potential accident spots. If there is a hidden step which people may trip on, or a low ceiling which people might walk into, then you may like to make these more visible to try and reduce the chance of accidents.

Above all, adequate property insurance will give you peace of mind in knowing that your investment is protected. I hope that this hasn’t put you off buying property abroad but has rather given you an insight into the world of overseas property insurance and an idea what you can do to prepare for any eventuality.

As ever, with such a specialist subject, I would always suggest that you seek the advice of an expert in overseas property insurance as soon as you know you are going to buy property abroad. An insurance expert will be able to provide you with detailed information on insurance in the country of your property purchase, advising of the necessary policy details and any restrictions. They will also be able to provide you with a quote specific to you and your property.

If you would like to speak with an expert in overseas property insurance, we highly recommend HB Insurance.

Go to: http://hb2.hbinsurance.co.uk/holiday_homes/quote.asp?agent=OVGU

You will need to enter the necessary details including; the type of property, the address, the policy commencement date, the property value to be insured, the contents value to be insured, and in addition, is the building listed?

If your property is a listed building or if the values are slightly unusual, you may be asked to phone through directly. If this is the case, make sure that you quote THE OVERSEAS GUIDES COMPANY to ensure that you get the best quote possible.

Insuring yourself against currency movements
by Smart Currency's, Charles Purdy

What does insurance give you? It should ensure that you are left in no worse position after an event such as a fire than before it. It will [hopefully] remove the stress and strain of having to worry both before and after [if you are unlucky] of a traumatic event such as a fire actually happening.

We try and achieve the same thing for our clients at Smart. One of the ways we do this is to give better rates than the banks which will save you some money which can be used to buy some white goods or perhaps even a better property. We also save hidden costs such as receiving costs. The Spanish banks can charge up to 0.5% for receiving you money. Thank you Spanish banks!

However one of the major savings is making sure that you don’t have to find an extra £2,000 or £5,000 or whatever when you come to buy your €250,000. You may have budgeted an exchange rate of €1.472/£1 but on the day you need the funds the rate is €1.46/£1. Ouch.

What will hurt even more is that they may have been able to “insure” a rate of 1.473 a month earlier. You can do this through an insurance policy known as a forward contract. For a deposit of up to 10% you could have secured the exchange rate of €1.473/£1 and removed all the worry and stress and strain of finding that extra money. In fact you have saved against your budget. Yippee.

The best insurance policy I ever wrote saved a client over £20,000. As he was emigrating to France this paid for a lot of those hidden extras and meant he started his new life in France on a happy note.

This is why the Euro has been on the ascendancy and has strengthened to €1.459/£1 inter bank. The European Central Bank has indicated that given how well Euro land is performing interest rates are still too accommodative [i.e. too low] and as such the market expects an increase in Euro land interest rates by 0.25% by the year end. I suspect that the Euro will be in the ascendancy for a while and as such it may make sense to buy on any short term weakness.

To get a Better-than-Bank go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

Top Burning Question - what about protecting my health too?

Don’t worry: you are entering a country full of hypochondriacs (ok…slight exaggeration….!) as France has one of the best healthcare systems in the world. You should affiliate to the French health system via the Caisse Primaire Assurance Maladie (CPAM) using an E121 form. This form is issued to those of pension age in receipt of a UK state pension and those in receipt of long term incapacity benefit from the UK. The form is available from www.dwp.gov.uk. Once you register with CPAM you will receive your Carte Vitale. As long as you continue to be in receipt of the state pension the E121 will continue to be valid.

Have a look at http://www.cmu.fr which gives information about claiming free health cover in France and also http://www.ameli.fr which is an overall CPAM site.

Finally, for those minor scrapes, never discount your local pharmacist! Pharmacists in France are highly trained and give good advice for free. They will even dress small wounds and often have an emergency night service. Some also have a service for regular customers where you pay your share of the price of prescription medicines and they will collect the rest from CPAM on your behalf.

EHIC - European Health insurance Card (replaces E111 paper from 2006 onwards)

EHIC - European Health Insurance Card (Replaces E111 paper from 2006 onwards)

From 2006, the E111 form is no longer valid. If you are travelling to EU countries you will now be required to be in possession of an EHIC Card - European Health Insurance Card.

Highlights:
- The EHIC replaces the E111
- Covers basic healthcare while travelling in Europe
- One card needed for each family member
- Not for planned treatment, only emergency
- Travel Insurance still needed

The new card allows EU nationals to obtain the same level of healthcare as a local resident in a member country when travelling.

The scheme covers short-term trips around Europe and Switzerland. It only covers basic national healthcare as received by local residents. This scheme will not cover those living permanently outside the UK. It will cover the cardholder in member countries of the European Economic Area and Switzerland, is valid for 5 years and only available to UK residents.

One new card will no longer cover the whole family as the old paper system did. Each person in the family will need a separate insurance card. The new card provides the user with essential care needed for the length of stay, which means that in cases of travel with existing/chronic medical conditions non-emergency care will also be provided. It does not cover already planned treatment in home country.

The EHIC also covers all aspects of care originally provided under the paper system, along with necessary treatment for travellers with existing conditions. The card will not cover treatment a patient is awaiting for in his or her own country, nor treatment that can wait until return home.
It is important to remember that treatment covered will be the same as that received by locals, which can vary among EU member states. In France treatment is sometimes better than the level of the NHS!

The EHIC is available free of charge through the Department of Health website at: http://www.dh.gov.uk/travellers or http://www.ehic.or.uk or by telephoning 0845 606 2030.
You can also obtain the EHIC by completing the Department of Health leaflet “Health Advice for Travellers” (HAFT). This is available through most UK Post Offices or by telephoning 08701 555 455.

For EHIC Enquiries you can also write to PO Box 1114.Newcastle upon Tyne, NE99 2TL

Delivery date:
Online - 7 days
Phone - 10 days
Post Office- 21 days

Also called the EU Medical Card, over 8 million people in the UK have already received the new EHIC card - it looks just like a small plastic ID card and gives details such as your name, date of birth and National Insurance number.

On receipt of your new card please check it: errors have been known to happen and that could cause major problems if you need to use your EHIC in a medical emergency abroad - you could be refused treatment if your card details don't match up with your passport details.

If your card details are wrong, return it immediately. Allow 7 days for the new one to arrive.
If you or any of your dependants are suddenly taken ill or have an accident during your visit to any of these countries, free or reduced-cost necessary treatment is available - in most cases on production of a valid EU Health Insurance Card.

While the card will cover emergency treatment, it is essential that all travellers to Europe still obtain travel insurance. The card will not cover any transportation home (repatriation) or expenses for relatives, accommodation costs etc. should an emergency occur. Please remember that the EHIC Card form is NOT a substitute for comprehensive travel health insurance. For instance if you and your family are involved in a car crash, it won't cover you for repatriation home for treatment at a local hospital. Only comprehensive travel health insurance cover, which you'll have to take out privately, would cover you for that.

If you're working in the UK but paying social security contributions to another EEA country or Switzerland, you should get your EHIC from the institution to which you pay your contributions. Not all UK residents are covered in Denmark, Iceland, Leichtenstein, Norway or Switzerland - the leaflet 'Health Advice for Travellers' gives more information and is available from Post Offices or the Department of Health website.

For detailed guidance, please check the section “Who is eligible for an EHIC?” in either the HAFT leaflet or on the DH website.
http://www.travelhealth.co.uk/advice/ehic.htm

Which travel insurance to use?

The OGC team has tested out many insurance companies. Some were good and some were not so good. Two insurance companies stood out from our research.

Columbus Direct

Columbus Direct is a well known travel insurance specialist which has been going for about 20 years. The company sells direct to the public and this effectively cuts the “middle man” and saves clients up to 60% in commissions charged by other providers.
The company has a wide variety of travel insurance options from single, annual insurance, backpacker, ski trip, over 64, motor, home, cruises, pet and lots more.

To get your quote, go www.columbusdirect.com and select the kind of insurance you need. The web site will display a simple form with a few fields to fill in such as your residency, destination, and dates of travel.

Click ‘Submit’ and you get an instant quote and additional insurance you can add to your package such as additional sports, baggage insurance and so forth. It is very easy and you don’t have to enter any personal information before getting a quote!

Once you are happy with the quote you just simply fill in your contact details and pay. You can use Visa, master Card, Maestro or American Express. The policy is then emailed and sent in the post.

Ironically, as I was writing I actually received great feedback on Columbus Direct from one of our readers:

"Hi there,

I have just booked holiday insurance for my elderly family and friends from your recommendation on Columbus Direct I got a very good price very pleased

Thanking You Mrs. J. B."

Check out Columbus Direct

Direct Line Travel Insurance

Direct Line Travel Insurance is the other company I tested out. As with Columbus Direct, Direct Line offer great similar travel insurance options, however I discovered two issues.

I had to enter my contact details and address prior to getting quote. At this stage, I didn’t even know if I would be happy with the quote so I didn’t see a good reason as to spending all the time filling in my name, contact details and address.

Issue # 2 the price! I entered my details onto both sites, traveling to Cyprus from 15th October till 21st October 2007. Columbus direct quoted me just under £ 10 and Direct Line Travel Insurance £ 20. Big difference!

Direct line is currently offering a 20% discount, so I'd check them both out...

When I did my search, the price made my choice clear! Can you guess which one I picked? ? The key with travel insurance is to shop around. In most cases it only takes a few minutes to get a quote – we are continuously reviewing and adding resources to our services page. Before you get insurance, check our reviews and get quotes on all recommended links.

Red Hot Information... Insuring that you really DO have all the answers...

I have something REALLY exciting to tell you!!!

Kim and I are as busy as beavers updating and re-writing the France Buying Guide entirely and our baby is now almost ready to fly the nest! You will receive an email advising you of this and telling you how to go about getting your copy. As a France Buying Guide friend you are being given a very special offer – but it does end in October, so please make sure that you get your copy before that.

The old guide was 69 pages long with 6 pages of tick-lists and worksheets, compared to the brand new, revised France Buying Guide, which is 110 pages of detailed, researched and up to the minute information. Add to that the free bonus 20 pages of invaluable tick-lists and worksheets plus 40 pages of Your Questions Answered…you can see how invaluable this would be to you.

We have used a similar format, laying the whole process out in a logical, chronological way that is easy to follow and ensures that you remember every important step. We KNOW you are going about purchasing your France property in a logical way, but this is such an important decision that you are taking, with so much to think about – we are not leaving anything to chance!!

Here you will find the steps to the buying process, starting with Getting Ready to Buy in France, then Getting to France, the France Property Buying & Completion Process, an overview of each area of France, Building or Renovating a Property in France, Buying France Property for Investment, Where to Buy and finally Top Tips on Buying in France.

There is a full discussion on how to fund your new property, an indication of the cost of living for an average household in France, a wealth of information about where to shop for your new home, how to settle in – there is even a list of Associations that you can contact to ease your path to your new home in France – what price for peace of mind?

Building, buying, renovating, investing…it’s all here, in an easy to read guide that I predict you will not be able to do without.

So watch this space folks and look out for our new bumper France Guide and website – don’t go to France without it!

Testimonial

I must confess I was thrilled to receive the following testimonial the other day:

From: Cindy Poodle
Sent: 30 August 2007 14:04
To: Alexis Goldberg
Subject: feedback

This is the most informative & helpful guide anyone thinking of moving to France could wish for pointing out the pitfalls and the advantages far more information than I ever expected, a MUST for anyone thinking of moving abroad, and excellent communication via author,..Thank you very much. Kind Regards.. Anne from Grimsby Lincolnshire.

What can I say except if you thought that Guide was good, wait till you see the new updated one!

France is a country close to my heart, I have been going there ever since I was 11 years old and, as I may have mentioned, am still friendly with my lovely French penfriend, Elisabeth who is now a grandmother of two! With that in mind, I find it extraordinarily easy to write about France and very rewarding to help other people achieve their dream of owning a property there.

I have a number of reputable people that can help you achieve that dream just go to:
http://www.francebuyingguide.com/property.htm and I will personally look at your criteria and get you on the right road to France!

Till next time, I send you my best wishes and here’s hoping for a lovely Indian summer here in the UK…..

Please take good care of yourself – best wishes and a big holiday smile!

Alexis (and Kim!).
France Buying Guide/ Overseas Guides Company
Alexis@OverseasGuidesCompany.com Phone 020 7898 0549, Ext. 6064