People research health cover before relocating and rarely anything else. Yet which insurances are compulsory varies considerably between countries, and the assumption that home rules apply is how residents end up uninsured for something they were legally required to hold.
| Almost always compulsory | motor third-party liability |
|---|---|
| Sometimes compulsory | personal liability, home, professional |
| Rarely compulsory | contents, life, income protection |
| Common error | assuming home-country rules apply |
Personal liability
The clearest example of the assumption problem. In some countries personal liability cover is a normal household purchase held by most residents; in others it is barely known.
What it covers: damage you cause to other people or their property in ordinary life — a burst pipe reaching the flat below, a cycling accident, damage in a rented property.
Why it matters where it is customary: in those places the expectation that you hold it is built into how disputes are settled, and landlords may require it as a condition of a tenancy.
It is usually inexpensive, and the exposure it covers is not.
Motor cover
Compulsory nearly everywhere, with details that do not travel:
- Minimum third-party cover is universal; the required level varies
- No-claims history from abroad may not be recognised, which can make first-year premiums high
- Named-driver rules differ — lending a car informally may not be covered
- Foreign licence periods — driving on a foreign licence beyond the permitted period can void the policy entirely
The last is the serious one. An expired entitlement to drive on a foreign licence makes you an unlicensed driver, and an unlicensed driver's policy generally does not respond — turning an ordinary accident into personal liability for the full cost.
The exchange deadline set out in the material on settling in is therefore an insurance deadline as much as an administrative one.
On the no-claims point, it is worth asking your previous insurer for a written claims history before leaving. Some insurers will recognise a documented foreign record even where they are not obliged to, and the letter costs nothing to request while you are still a customer.
Home and contents
Two separate things, frequently conflated.
Buildings cover — the structure. The owner's responsibility, and often required by a mortgage lender.
Contents cover — your possessions. Yours whether you own or rent, and the one tenants most often skip.
Points that differ by country and by policy:
- Whether flood, storm or earthquake is included, excluded, or separately purchased
- Whether valuables above a limit must be listed individually
- Whether unoccupancy beyond a period voids cover
- Whether accidental damage is included or optional
The first matters most in regions exposed to a specific natural hazard, where the relevant peril is often the one excluded from a standard policy and sold separately — which is precisely the cover a newcomer would assume was included.
The third catches people who travel: a property empty beyond the stated period may be uninsured without any notice being given.
Cover tied to work
- Professional indemnity — compulsory for regulated professions in many places, and part of the licence to practise
- Employer's liability — compulsory if you employ anyone, including domestic staff in some systems
- Public liability — commonly required for businesses receiving visitors
- Accident and sickness contributions — often part of social security rather than insurance
The second is the one that surprises private individuals. Employing a cleaner, a nanny or a gardener can create employer obligations including insurance, and people who would never describe themselves as employers frequently are.
What to review on arrival
- What is legally compulsory here — ask locally rather than assuming
- What is customary even if not compulsory
- Whether existing policies from home still respond abroad — most do not once you cease to be resident
- Whether life or income protection from home remains valid after relocating
- Whether an employer scheme already covers some of this
Point three deserves checking rather than assuming. Many home-country policies lapse or exclude claims once the insured is no longer resident there, and the policyholder continues paying premiums for cover that would not pay out — a discovery normally made at claim.
Point four matters most for anyone with dependants. Life cover arranged years ago at home may have a residence condition buried in it, and the time to establish that is before the move rather than after.
Frequently asked questions
Why does personal liability cover matter more in some countries?
Where it is customary, the expectation that you hold it is built into how disputes are settled, and landlords may require it for a tenancy.
What happens if you drive past the foreign-licence deadline?
You become an unlicensed driver, and the policy generally does not respond — turning an ordinary accident into full personal liability.
Why check natural hazard cover specifically?
Because in exposed regions the relevant peril is often excluded from standard policies and sold separately — exactly what a newcomer would assume was included.
Do home-country policies keep working abroad?
Often not. Many lapse or exclude claims once you cease to be resident, while premiums continue to be paid for cover that would not pay out.
