The Expat Insurance Checklist: What Lapses, What You Need and What to Watch

Insurance is not an exciting topic, but uninsured financial losses are significantly less exciting. Relocating internationally creates a constellation of insurance changes — some policies lapse automatically, some require notification, some need to be replaced with local equivalents — that most expats do not address systematically until something goes wrong.

This checklist works through each category of insurance that UK residents typically hold, explains what changes when you relocate, and provides guidance on what you need instead.

UK Property Insurance: Buildings and Contents

If you let your UK property while abroad: Your standard residential contents and buildings insurance policy almost certainly contains a clause that voids or materially changes cover when the property is let rather than owner-occupied. You will need a specific landlord insurance policy covering: buildings (typically required by your mortgage lender), landlord contents (white goods and furnishings if included in the let), landlord liability (if a tenant or visitor is injured), and loss of rental income.

Most residential policies also have a clause that voids cover if the property is unoccupied for more than 30–60 consecutive days. If you retain ownership but the property is empty during a gap between tenancies, notify your insurer or switch to a dedicated unoccupied property policy.

If you retain your UK property as a second home: Some policies cover a property as a second home (not permanently occupied); others explicitly exclude properties not used as the main residence. Check your policy wording specifically.

Contents Insurance for Your Overseas Home

Your UK contents policy does not cover belongings in an overseas home. Separate contents insurance is required for your primary overseas residence.

Local home contents insurance is available in most major expat destinations — through local insurers or through the international branches of BUPA, AXA and Allianz. Alternatively, some international health insurance policies include a personal possessions or home contents element.

Check the policy for: all-risks cover (theft outside the home, loss of valuables), high-value items declaration requirements (jewellery, electronics, art, watches — typically require individual declaration above a per-item threshold), and territorial limits (does it cover items you travel with?).

Travel Insurance: The Residency Exclusion

This is one of the most common and consequential insurance misunderstandings for expats. Standard travel insurance policies — including annual multi-trip policies — exclude your country of residence. Once you are resident in Thailand, UAE, Spain or any other country, travel insurance does not cover you while in that country. It only covers you during travel to other countries.

This means:

• You cannot use travel insurance for emergency medical treatment in your country of residence
• You cannot claim travel disruption cover for trips within your country of residence
• For day trips and short domestic travel within your new home country, you need your local health insurance or IPMI to cover any medical costs

The practical implication: purchase your international health insurance policy before (or at the latest on) your date of arrival in the new country. Do not assume travel insurance provides a bridge.

Travel insurance for trips you take as an expat to third countries (holidays, business trips, UK visits) works normally — you are the traveller, and your country of residence is excluded. UK visits are not typically excluded in most policies (the UK is not your "country of residence" while you live abroad), though read the small print carefully.

Car Insurance

Your UK car insurance does not cover you for driving abroad beyond a short period (typically 90 days for EU countries under the standard Motor Insurance Directive provisions). For permanent residence abroad, you need a local motor insurance policy.

Key issues:

No claims bonus. Your UK NCB is valuable — often representing a 60–70% discount on premium. Not all countries' insurers recognise UK NCB. In some countries (Germany, Netherlands, France) the NCB concept and international transfer is straightforward. In others (UAE, Thailand) insurers may not give formal credit for a foreign NCB, though evidence of claims history can help when negotiating. Before leaving the UK, request a formal NCB letter from your UK insurer dated to the day of policy cancellation — this is the document insurers abroad need.

Local licence requirements. Some countries require a local driving licence before insurers will issue a policy. In the UAE, a UAE driving licence is required; UK licence holders from most countries can convert without a test. In Thailand, an international driving permit is acceptable for short periods, but a Thai licence is required for residents. Ensure you have the appropriate licence before needing to make a claim.

Third party vs comprehensive. In many markets, basic third party insurance is required by law. Comprehensive cover is strongly advisable for expats who may not be fully familiar with local driving conditions and accident reporting procedures.

Life Insurance: Overseas Residency Clauses

UK life insurance policies (term insurance, whole of life) typically include clauses relating to overseas residence. Most standard policies allow a period of overseas residence — commonly two to three years — without requiring notification or policy adjustment. Extended residence abroad or relocation to a "higher risk" territory may require notification and may affect the policy terms.

Read your policy documents specifically on this point. If your policy was taken out with a UK insurer and you are relocating for an extended period, notify them in writing. Failure to notify may give the insurer grounds to contest a claim, though in practice most UK life insurers handle overseas residence pragmatically for policyholders who notify promptly.

If you need new life insurance after relocating, local providers are available in most major expat markets. In the UAE, local life insurance providers (Zurich International, MetLife) offer policies in local currency. International term insurance policies (available through some international brokers) provide coverage irrespective of country of residence and can follow you between postings.

Income Protection Abroad

UK income protection insurance typically pays a proportion of pre-disability income if you cannot work due to illness or injury. Policies issued in the UK typically have a specific "own occupation" or "suited occupation" definition and a payment term linked to UK working patterns.

Relocating abroad can affect income protection in several ways: the definition of disability may reference UK medical and employment standards; the policy may explicitly exclude incapacity arising in certain countries; and payment of benefit to a non-UK resident may be administratively complex.

If income protection is important to your financial plan, review your existing policy with the insurer and take independent advice on whether replacement or supplemental cover is appropriate.

Professional Indemnity Abroad

For self-employed professionals, consultants, advisers, medical practitioners and other regulated professionals working internationally, professional indemnity (PI) insurance is required to practice in most jurisdictions. UK PI policies typically cover work performed in the UK for UK clients; coverage for work performed abroad or for foreign clients varies.

Most professional bodies require their members to maintain PI insurance as a condition of continued registration. Check whether your existing PI policy extends to your overseas working arrangements and whether local professional registration requires locally-issued PI cover.

Employer-Provided Insurance: Read the Policy

For expats whose primary cover (health, life, income protection) is employer-provided, the critical point is: read the policy yourself. Do not rely on summaries from HR. Key questions:

• What happens to cover on redundancy or dismissal? In most cases, employer-provided cover terminates immediately. A gap between employment ending and new employment (or individual cover being arranged) creates an uninsured period.
• What are the pre-existing condition exclusions on the employer's group health scheme?
• Is the life insurance written in trust (ensuring it pays out outside the estate, avoiding delays and potentially IHT), or does it require estate administration?
• For employer-sponsored destination insurance: does the policy revert to UK coverage terms, or does it specifically cover you in your destination country?

How Global Investments Can Help

Global Investments works with clients across the international markets we operate in to ensure that the financial infrastructure of an international move is soundly structured. Insurance is a component of this — not an afterthought.

We can introduce you to specialist international insurance brokers who operate across multiple jurisdictions and can provide a coherent insurance review across health, life, property and professional risks. We do not sell insurance products ourselves, but we can connect you with advisers who do.

Contact our team to discuss your relocation plans and ensure your coverage is appropriate.

This article provides general information only. Insurance policy terms are highly specific and individual policies must be read carefully. Always take professional advice from a regulated insurance broker before making coverage decisions.