UK Expat Insurance: A Guide

UK expat insurance can be challenging as UK-based insurance policies may no longer provide coverage once residency status changes.

The type of insurance an expat needs depends on factors such as destination country, length of stay, employment status, and legal requirements in the host country.

In some cases, expats may still qualify for certain UK protections, while in others, they must secure international or local insurance policies.

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This guide outlines key UK expat insurance considerations, focusing on how policies such as health insurance, life insurance, car, and property coverage function for UK citizens abroad.

UK Expat Health Insurance

Health insurance is one of the most critical concerns for UK expats, as access to the National Health Service (NHS) is generally lost upon leaving the UK.

The NHS is a residency-based system, meaning individuals who permanently relocate abroad are no longer entitled to free NHS treatment unless they meet special exemptions.

Does NHS cover UK expats?

The NHS provides free healthcare to UK residents, but expats lose access to most services if they:

• Live abroad permanently and are no longer considered UK tax residents.
• No longer maintain UK residency under HMRC tax rules.
• Have moved to a country without a reciprocal healthcare agreement with the UK.

However, UK expats may still access NHS care if they:

• Live abroad temporarily but maintain UK tax residency.
• Are state pensioners living in certain countries covered by reciprocal agreements.
• Return to the UK for temporary visits (e.g., travel or medical treatment), though they may be required to pay for non-urgent care.

Global Health Insurance Options for UK Expats

Since NHS coverage is not available for most UK expats, many purchase private health insurance to cover medical expenses abroad. The two main options are:

International Private Medical Insurance (IPMI)

• Designed for expats moving abroad long-term.
• Covers global healthcare costs, including hospitalization, GP visits, surgery, and emergency care.
• Can include repatriation coverage, allowing expats to return to the UK for treatment.
• Premiums vary based on age, destination country, and coverage level.

UK Expat Insurance in the Host Country

• In some countries, private or public health insurance is mandatory for foreign residents.
• Local insurance is often cheaper than IPMI but may provide limited international coverage.
• Some national healthcare systems allow expats to pay into state insurance schemes (e.g., France’s PUMa, Germany’s GKV, or Japan’s NHI).

EHIC/GHIC for UK Expats Traveling in Europe

UK expats can still use the Global Health Insurance Card (GHIC) or the predecessor European Health Insurance Card (EHIC) for temporary stays in the EU, Switzerland, and certain European countries.

Expats who have an existing EHIC may continue to use it until the expiry date on the card, after which it needs to be replaced with UK GHIC.

These cards provide:

• Access to emergency medical treatment in participating countries.
• Coverage for state-provided healthcare, often at the same cost as local residents.
• Not a substitute for full expat health insurance, as it does not cover private medical treatment, repatriation, or long-term care.

Pre-Existing Conditions and Insurance Exclusions

Most international and local health insurance policies exclude pre-existing conditions, meaning expats with chronic illnesses may face higher premiums or limited coverage.

Some insurers offer “moratorium underwriting,” which excludes pre-existing conditions for a set period (e.g., two years) before providing coverage.

UK Expat National Insurance Contributions (NICs)

UK expats must consider their National Insurance (NI) contributions when moving abroad, as these contributions affect State Pension eligibility, benefits, and long-term tax planning.

Whether an expat needs to continue paying NI depends on residency status, employment situation, and whether they move to a country with a social security agreement with the UK.

For a more thorough guide, please check this article on National Insurance.

UK Expat Life Insurance

Life insurance is a crucial financial safeguard for UK expats, ensuring that their family or dependents receive financial protection in case of death. However, relocating abroad can complicate policy validity, taxation, and coverage terms, depending on the insurance provider, residency status, and host country regulations.

Can UK expats keep their existing life insurance?

UK expats may or may not be able to retain their existing UK life insurance policy, depending on the insurer’s terms. Some key considerations include:

• Residency Restrictions → Many UK insurers only cover UK residents. If an expat moves abroad permanently, their policy may be voided unless specified otherwise.
• Policy Adjustments for Expats → Some insurers allow policy modifications to reflect an expat’s new country of residence, though premiums may increase.
• Payment of Premiums → Expats must ensure they can continue paying premiums in GBP from a UK account or arrange international payment methods.

UK Expat Inheritance Tax

UK expats should consider inheritance tax (IHT) implications on life insurance payouts:

• If the expat is UK domiciled, the payout may be subject to UK inheritance tax (40%) if the total estate exceeds the £325,000 threshold.
• Writing the policy into a trust can help avoid IHT liability, ensuring the payout goes directly to beneficiaries tax-free.
• If an expat becomes non-domiciled, their life insurance payout may be subject to local inheritance tax laws instead of UK IHT.

It is important to note that the domicile system will be replaced by a residence-based system from April 2025. UK expats who remain residents in the UK may then be subject to IHT regardless if they were deemed non-domiciled before.

UK Expat Home and Property Insurance

UK expats who own property in the UK or purchase real estate abroad need home insurance to protect their assets. However, insurance coverage depends on residency status, property use, and whether the property is occupied, rented, or vacant.

UK Home Insurance for Expats Renting Out Their Property

Expats who retain UK property while living abroad must ensure they have the correct type of insurance, as standard UK home insurance policies often become invalid if the owner is no longer a UK resident.

UK Expat Landlord Insurance

Expats renting out UK property must switch to a landlord insurance policy, which covers:

• Property damage from fire, flooding, and natural disasters.
• Loss of rental income if the property becomes uninhabitable.
• Legal liability protection if a tenant is injured on the premises.
• Optional rent guarantee insurance to cover unpaid rent.

Unoccupied Property Insurance

If a UK expat leaves their home vacant for more than 30 to 60 days, standard home insurance may not cover damages or theft. Unoccupied home insurance protects against:

• Break-ins, vandalism, and squatters.
• Leaks, mold, and other unattended maintenance issues.
• Some insurers may require regular inspections to maintain coverage.

Standard Home Insurance

 If a UK expat returns occasionally and keeps the home for personal use (not renting it out), they may qualify for a non-resident homeowner policy with limited coverage.

Overseas Home Insurance

Expats who purchase homes in foreign countries must follow local insurance laws, which vary by country. Key considerations include:

• Is home insurance mandatory? Some countries, like France and Spain, require property owners to have insurance. Others do not.
• Does the local insurer cover expats? Some countries have restrictions on foreign property ownership, affecting insurance eligibility.
• Natural disaster coverage: Expats buying property in hurricane, earthquake, or flood-prone areas should ensure natural disaster protection is included.
• Currency risks: Some expat insurance policies allow premiums to be paid in GBP, reducing currency exchange risk.

UK Expat Car Insurance

UK expats who own vehicles in the UK or drive abroad need to ensure they meet insurance requirements for their situation. Car insurance rules vary based on whether the expat keeps their UK vehicle, buys a car abroad, or drives across multiple countries.

Keeping a UK Car While Living Abroad

UK car insurance is typically only valid for UK residents, meaning expats may need to:

• Maintain UK residency to keep their policy active.
• Register the vehicle as SORN (Statutory Off Road Notification) if it will not be used while abroad.
• Find a specialist non-resident UK car insurance provider.

If an expat continues using their UK vehicle abroad, they need to check if UK insurance covers international driving or if they need to register the car in the host country.

Green Card Insurance

UK drivers in most European countries including the EU countries, Norway, Switzerland, and Liechtenstein no longer need to carry a Green Card for short-term visits.

However, long-term residents must register their vehicle locally and obtain local insurance. Some UK insurance policies offer extended EU coverage, but this varies by provider.

Buying a Car Abroad as a UK Expat

Expats who purchase a vehicle in their new country must comply with local registration and insurance laws. Considerations include:

• Mandatory car insurance – Most countries require third-party liability insurance at a minimum.
• International driver’s license requirements – Some countries require expats to obtain a local driving license within a set period.
• No Claims Bonus (NCB) Transfers – Expats may be able to transfer their UK No Claims Bonus to reduce foreign car insurance costs.

Can Expats Keep UK Car Insurance While Abroad?

• Most UK insurers cancel policies if the policyholder is no longer a UK resident.
• Some specialist providers offer expat-friendly car insurance for those who spend time in multiple countries.
• Expats planning to return to the UK should check if their No Claims Discount (NCD) remains valid.

For more guidance, please consider seeking the services of an expat financial advisor.

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