Throughout time, philosophers wondered how the Earth was shaped, and what lie beyond the horizon.  Years later, the mysteries were solved by explorer Ferdinand Magellan.  Magellan was a Portugese-born ship captain, who attempted to circumnavigate the Earth in the mid-16th century.  He initially set sail with a team of five ships and over 250 crew men to find quicker trade routes to other countries, but continued his voyage in hopes of putting the myth of a flat Earth to rest.  The cultures and new experiences he encountered on his journey were numerous.  Unfortunately, the risk associated with this journey was great, and the trip would prove fatal for him and many of his crew members.  However, the remaining 18 crew members continued the journey after his death, realizing his dream of making the first voyage around the world.

Magellan’s life and perspective could be compared to the life an expatriate.  He was a risk-taker and reveled in the moment of discovery.  Everything he encountered was new and unexpected.  He had no idea what the future held, or what lay beyond the horizon, but he entered it fearlessly, ready to accept the risks he encountered. 

Expatriates brave a new horizon upon relocating to a new country.  Many have to learn a new language, and become accustomed to a new culture.  Every time Magellan docked at a new location, he drew from his inner courage to face the unexpected.  When expatriates walk the streets of a new city for the first time, they reach for that same bravery in order to begin navigating the unfamiliar surroundings.  Like Magellan, expatriates have a sense of wonderment about the world around them, and will push aside risks in order to explore it.

Luckily, today’s world fosters this wonderment, and all of the risks that come with it.  Magellan set sail years before the idea of insurance was ever created, and never had the opportunity to benefit from this modern concept, but today you have a wide variety of choices in coverage to help you on your journey.

Finding the right insurance might sound like a daunting task, and conjure up images of mountains of paperwork and confusing fine print, but the process is easier than you think.  Here are a few tips to help you on your journey.

Health
Healthcare has traveled a long journey in the world of technology since Magellan’s time.  Purchasing health coverage is vital, but can be challenging if you are not certain of what you need to ensure you get the highest level of service and medical treatments available.  There are a few things to consider when narrowing your search.

Worldwide Coverage
Your typical coverage does not extend beyond the borders of your home country, so when you travel abroad, you might not be as protected as you think.  Some insurance companies offer specialized global health insurance for frequent travelers or people relocating abroad.  If you are moving due to a corporate relocation, check with your Human Resources Manager regarding the exclusions in your current plan, and if changes will be made to accommodate your new destination. 

Emergency Evacuation
Occasionally, job assignments take you to areas where advance medical practices are not prevalent.  An emergency situation is not the time to find out your health plan will only pay for local medical assistance.  With emergency evacuation, you would be transported to a suitable medical facility or in even your home country if you were in a life-threatening situation, in order to receive medical care that is up to your standards.  Some policies even include a clause where your family can be flown to the location where you are hospitalized.  

Pre-existing Conditions
If you are being treated for a medical condition before you begin a new insurance plan, check to make there are not exclusions for pre-existing conditions.  When a plan does not cover pre-existing conditions, it means you will be paying out-of-pocket for continued treatment of your medical condition in the future. 

Property
On Magellan’s voyage, four of the five ships he sailed with were destroyed.  While your possessions might not be traveling around the world, accidents can happen during a move.  Think about every item you have ever purchased.  Little by little, things add up, and if you ever had to replace a lifetime of possessions, you would probably be faced with a steep bill.  With property insurance, a check could be issued after a covered loss, so all of your possessions could be replaced at no cost to you.

Transit and Destination Coverage
If you have not relocated to your new country yet, it is essential to obtain a property insurance plan which includes transit coverage.  If anything is going to break or go missing, chances are it will happen when you items are moving from one destination to another, rather than when they are stored comfortably in your home. 

Maintain Continuous Coverage
Be mindful of the effective date of your policy.  If you are canceling your current homeowner’s or property coverage in your home, the effective date of your new policy at your destination should be the same as your cancellation date.  When obtaining transit coverage, it is best to make sure it is included in your new property coverage, as a packaged policy.  If you opt to purchase transit insurance from the carrier of your goods, claims can be more difficult to prove.  If you are unpacking boxes a month later and find an item damaged, it will be hard to prove whether the damage occurred in transit, when it was on the shipping dock, or when you happened to drop the box when you were carrying it upstairs in your new home.  If you have transit included in your property coverage, the covered loss will be paid, no matter when the damage occurred.

Unscheduled and Scheduled Coverage
There are two types of property coverage available from most insurance agencies: unscheduled and scheduled coverage.  Most items you own will be considered unscheduled, such as clothing, or bedding.  If you own high-value items, they will fall under scheduled coverage.   By scheduling your coverage, you are listing any items that are of high value, such a jewelry, electronics, artwork, or musical instruments.  For example, you might ask for £3,000 of unscheduled coverage on clothing, but you would list your jewelry individually with exact values under scheduled coverage.  You should update this list yearly, as appraisals for items can change over time, and in the event of a claim, you will be sure to receive the adequate value of the item.

Auto
Driving in a new country can be similar to navigating a ship through rough waters, and can make for a frightful experience.  New road signs, driving laws, and aggressive motorists can send you on a detour, but proper coverage can help to keep you on the road.

Local Laws
Laws and insurance levels vary throughout the world.  While some locations require a minimum amount of coverage to be purchased, other countries have no regulations.  It is important to understand the insurance and registration requirements of your new destination because there are often harsh penalties for not following the local laws, including in some cases jail time.  Consult your insurance advisor to review the regulations in your new country.

Excess Liability
Make sure the coverage you purchase is adequate to cover a loss should it occur.  In some countries, local laws require that insurance coverage be obtained from a local agency, which occasionally can be inadequate.  In these instances, it is advisable to purchase excess liability through another company, which will extend your local coverage.   If a covered loss were to occur, and your local coverage would only pay for a portion of the cost, your excess liability would cover the remaining amount. 

High Risk
One aspect of traveling that has not changed since Magellan set sail is the risk associated with visiting or relocating to countries at war.  World travelers face unique risks, such as injury from a terrorist attack or warfare, or the danger of a kidnapping.  While none of these situations are pleasant to think about, there are specially designed policies to lessen the financial burden caused from these events.

War and Terrorism
This coverage is crucial for anyone who is traveling to a location where there is political or civil unrest.  Many medical and life insurance policies typically exclude claims resulting from acts of war and terrorism, but often offer a coverage extension for people who are interested in the optional coverage.

Kidnap and Ransom
Again, this coverage is also important if you are traveling to a location where the risk of kidnap is greater.  Some of the hot spots recently have included countries in Latin America and Africa. With Kidnap and Ransom, a team of professional hostage negotiators are commissioned to work with the captors to secure a safe return for the detainee.

As an expatriate, you have embarked on an exciting journey of new experiences and discoveries.  Insurance coverage will help eliminate the risks associated with this voyage.  Magellan set sail with no protection, only hope that something lie beyond the horizon to make his efforts worthwhile.  In your case, something exciting does lie beyond the horizon, and with the right insurance, your ship is sure to make it there.

Copyright Emilie Udell. Reprinted with Permission.

For 60 years, Clements International has insured families, organizations and their belongings in their global moves all over the world.  For more information on global insurance solutions, please feel free to contact Ms. Emilie Udell at +1 202 872 0060 or via email at eudell@clements.com