For UK customers only

Second homes

• Norwich Union is the only major insurer to cover a second property on a standard household policy - covering up to 5 countries - the UK, France, Spain, Portugal and Ireland.
• Other insurers tend to require a separate policy to be taken out for each property.
• Norwich Union offers insurance for holiday homes in a number of ways. In all cases, Norwich Union will insure the holiday home if the customer already has a Norwich Union home insurance policy for their main UK residence.

COVER	Norwich Union Direct home insurance	Tapestry (mid net worth) - broker only	Home plus - broker only
Countries covered	UK	UK France Mainland Spain Portugal	UK France Mainland Spain Portugal Ireland
Main residence standard policy limits:
Contents	Min £15,000 Max £75,000	Min £75,000 No max	Min £15,000 No maximum but above £100k referred to Tapestry
Buildings	Min £35,000 Max £600,000	Min £250,000 No max	Min £35,000 No maximum but above £250,000 referred to Tapestry
Second property limits:
Contents	Min £15,000 Max £75,000	No min/max	Up to £50,000
Buildings	Up to £600,000	No min/max	Up to £250,000
Second homes - France/ Mainland Spain, Portugal and Ireland:
Contents	Cover not available	£150,000 max (combined sum insured for buildings and contents must not exceed £350,000)	£8,000 min £50,000 max
Buildings	Cover not available	£350,000 max (combined sum insured for buildings and contents must not exceed £350,000)	£30,000 min £100,000 max

Nb - second homes are likely to have less contents than main residence

Key features

• Main UK residence must already be insured with Norwich Union
• Second home only used for family and friends and not let out on a commercial basis
• Rated by selected sum insured
• Buildings and Contents cover available
• Second home should be of standard construction and in a good state of repair
• Exclusions for unoccupancy for more than 60 days are the same as for homes in the UK. If the property is to be left unoccupied for longer than 60 days there will be an exclusion of Theft and Escape of Water cover, however, this can be be increased to 90 days at an additional premium. (Over 90 days would need be considered on an individual basis.
• Security has to be satisfactory with door and window locks.
• We would normally ask the owner to ensure that someone regularly checks the property as the risk of burglary and escape of water increases considerably with the length of time a property is left unoccupied.
• The Spanish and French laws on monies required in event of catastrophes is included in the premium

Key facts about second homes

• BBCi reports that "Buying a property abroad is no longer just for the rich, it's becoming more popular and accessible to all."
• With the mass availability of cheap flights, and the wide television coverage on buying a home abroad, people are being tempted to make the move, be it a holiday home or as an investment.
• Lenders say there has been a surge in people taking out mortgages to buy overseas properties
• The Survey of English Housing 2001/02 reports that the number of people with a second home in England alone is 152,000 and outside of GB 147,000. 60% of these second homes are for holiday purposes.

Tips and advice about buying a second home

1. Do your homework - don't act on a holiday whim. Speak to people who currently live in the area, visit out of season and investigate the travel options of getting to your chosen location.
2. Always use qualified professionals who are proficient in your chosen country's laws and processes. Find a good solicitor and surveyor fluent in both English and the native tongue.
3. Research all legal issues and costs involved up front. Consider opening a native bank account to ease payment transfers. Check out the tax laws of the country you are buying in as there may be strict rules if you rent or sell the house.
4. Ensure you don't inherit a debt on the property before you purchase - unlike in the UK, you could well be liable for the full amount.
5. If possible arrange your mortgage in the currency that you earn in or agree the exchange rate up front to avoid fluctuating rate changes.
6. Always allow yourself a cooling off period. Never sign a contract on the spot, especially one you don't understand.

Norwich Union - March 2007