Expatriate Insurance policies are designed to cover financial and other losses incurred while living and working in a country other than one's own.
Insurance should be arranged prior to relocating to a new country or destination. Policies will generally cover the duration of your stay and can be purchased on a 6 month to annual basis. It is important to purchase this insurance from a reputable company.
The most common insurance policies purchased by expatriates include:
* Personal Property
* Automobile Insurance
* Personal Liability
* Emergency Evacuation
* Medical and Dental coverage
* Short-Term Travel Insurance
In some cases, specialty insurance can be purchased for high-risk areas of the world that provide coverage for:
* War and Terrorism Terrorism
* Kidnap and Ransom Kidnap
* Personal Accident Personal Accident
The following detail provides information on the most common insurance purchased by expatriates.
Expatriate Personal Property Insurance
Coverage applicable to an overseas move is very different from your typical domestic homeowners or renters policy. Package policies specifically designed to cover the unique aspects of international assignments are recommended. Areas of coverage to be considered include: coverage for items left in commercial storage; transportation coverage on items shipped by sea, air and truck; coverage at your residence abroad for fire, theft, acts of God; and protection for effects while traveling temporarily within the United States or other countries. It is advisable to seek insurance which covers all losses except those specifically omitted in the exclusions section of the policy, as well as “Replacement Cost” coverage, assuring a non-depreciated claims settlement. "Replacement Cost" assures that your claims will be paid based on the cost to replace the item and not on a depreciated value.
Expatriate International Auto Insurance
Those operating vehicles internationally must purchase both Physical Damage and Liability coverage. Physical Damage provides both collision and comprehensive coverage. Collision insurance is coverage for your vehicle while being operated. Comprehensive insurance provides coverage for the vehicle while it is parked, including theft, vandalism, etc. Each coverage is provided under one policy. It is recommended that this coverage be purchased from a U.S. insurance company. The purchase of this coverage within the country in which you are located can be very risky. Many local companies are poorly regulated and, therefore, provide inconsistent claims settlements. In many cases, there is no regulatory body which can assist if you are dissatisfied with your claims settlement.
Automobile Primary Liability insurance must be purchased in the country in which you are located. Local governments will require this in order to register your vehicle. Be aware that limits of coverage can be very low in many countries. If you are uncomfortable with the level of coverage available in your country, you may wish to obtain Excess Liability insurance. This coverage simply increases your locally purchased primary coverage to an appropriate level of protection
Be aware when shopping for Primary Liability insurance that rates may vary drastically. Do not assume that the premium quote you receive is the standard within that country. Shopping for competitive rates is as essential abroad as it is in the United States.
Expatriate International Health Insurance
If you are not covered under a group medical insurance program, an individual international medical policy should be purchased. These policies include worldwide medical protection and also can include evacuation services. Costs are reasonable and, in many cases, less expensive than stateside coverage. In addition, those traveling abroad for shorter periods of time, may wish to purchase a travel medical policy which assists during emergency medical situations abroad. These policies are less expensive as routine medical procedures are not covered.
It is important to understand how your medical policy will assist you should you need urgent medical care in your host country. May countries have less than adequate facilities and may require immediate payment for services. Therefore, it is advisable to understand the assistance your policy will provide to locate suitable medical facilities.
