Step 8: Insuring the Property

When you finally decide to buy your property in Malta or Gozo, you are committing a large amount of money, whether it’s from your own funds or if you’ve borrowed it. You will be expected to repay a home loan even if a catastrophe occurs and the property is destroyed, leaving you with a big debt and no asset. It’s vital, therefore, that you take out insurance cover to give you peace of mind if the worst happens.

Types of Insurance

The most common type of home insurance is a buildings policy, which provides cover for the property itself against events such as fire, flood, subsidence, storm damage and other unforeseen calamities. In areas at risk of frequent flooding, you may need to take out separate cover at additional cost or the property may even be uninsurable for that particular risk. Your home loan provider will generally insist that you take out buildings cover. After all, in the early years of the loan, most of the real estate effectively belongs to them.
Associated with a buildings policy is the insurance of the contents. This covers all your furniture and personal possessions against loss and damage. Many policies provide replacement items on a new for old basis and some include accidental damage, increased cover at Christmas and other times plus various other options.
You can arrange title insurance for a one-off fee when you complete the contract to buy the home. Although you will have had the title checked before you make the purchase, irregularities may be found later that make the title to the property invalid. You can take out  either a ‘lenders’ policy that protects the outstanding home loan amount or an ‘owners’ policy that means you can pay off the loan and also receive a payment equivalent to the amount of your deposit, ensuring you have no financial loss.
In some cases, home warranties may be available and can be paid for by the builders of new properties. These will generally provide protection against poor workmanship for the first year, mechanical problems for the first two years and structural defects for up to ten years. Home warranties may also be available for existing homes, providing annual service agreements to repair breakdowns.

Where to Buy Insurance

There are numerous providers and real estate agents that will arrange insurance of various kinds. Banks and financial institutions may also offer the service as part of their home loan provision.
It’s well worth looking at several providers to make sure you get the best cover. The aim here is not necessarily to get the cheapest price because a reduced price often comes with a reduced level of cover. You really need to ensure that you’re fully protected, so check what is provided. Some buildings policies may include damage to underground cables and pipes, for example, while contents policies may provide cover for credit cards and cash. In particular, ensure the buildings cover provides for architects’ and surveyors’ fees, removal of debris and alternative accommodation. You’ll then have no unexpected costs and will at least have somewhere to live.

Some of Malta's popular insurance brokers include:

• Atlas Insurance
• Bonnici Insurance
• Citadel Insurance plc
• Elmo Insurance
• Middlesea Insurance plc