Tenerife Property Owners at risk
New legislation which came into force in January affects British foreign property owners in Tenerife. The new Rome II regulations affect cross border legal disputes and leaves foreign property owners open to public liability challenges from the UK. Over 90% of British overseas property owners are now under insured, and the figure is likely to be similar in Tenerife.
If a UK national suffers an injury in a Tenerife Property and both owner and tenant live in Britain, then action can be brought in the UK. Whereas previously any legal action would have had to pass through the Spanish courts, where compensation is lower, this new change will open the floodgates to the much higher claims common in the UK. It will also make people more likely to claim as it can all be done in their own language at minimal expense. It is expected that the specialist law firms, who already generate a huge amount of public liability claims through their television advertising, may start to target holiday makers.
Holiday home owners are at particular risk. Many who may think they are adequately protected by Spanish home insurance policies will find that their Public Liability (Responsabilidad Civil) is woefully inadequate for this type of claim. Policies in Spain normally only carry €100,000 to €160,000 of indemnity, whereas any meaningful compensation claim in the UK courts will easily exceed this, leaving the owner to find the money elsewhere.
If you are worried about your levels of cover, then Tenerife Property Shop can help. We are able to offer a policy specifically designed for expatriate homeowners which offers the most complete coverage available, at the best price.
If you have your home insurance through Tenerife Property Shop, then your public liability cover can be increased to €600,000 for just €21 and up to €1,000,000 for €36. If you are renting out your property and you are resident in the UK, then it cannot be stressed highly enough that you should upgrade your policy now.
To increase your cover or get a quote for home insurance, send us an email and we’ll tell you more.