Investing in U.S. real estate is a lucrative opportunity for many foreign nationals. However, safeguarding that investment is just as important as acquiring the property. One essential step that international investors should never overlook is property insurance. Without adequate coverage, unforeseen events such as natural disasters, vandalism, or liability claims can significantly impact returns—or worse, lead to financial loss.
In this guide, we’ll walk you through how to insure your U.S. investment property as a foreign national, the types of insurance policies available, key considerations, and how to choose the right provider.
Why does Insurance matter for Foreign Investors?
Insurance acts as a financial safety net, protecting your investment from damage, loss, or liability. For foreign nationals who may not be present in the U.S. full-time or who manage properties remotely, insurance becomes even more critical.
Without proper insurance:
-
Repair or replacement costs must be paid out-of-pocket.
-
Lawsuits or tenant claims can result in financial liabilities.
-
Mortgages may not be approved—most U.S. lenders require proof of insurance before funding.
Whether you’re flipping a home, managing a rental, or holding long-term property, insurance ensures your investment remains secure.
Types of Insurance Policies for Foreign Investors
Here are the key insurance types you should consider:
1. Dwelling Fire Insurance (Landlord Insurance)
This is ideal for rental properties and covers:
-
The structure itself (against fire, wind, hail, etc.)
-
Liability protection
-
Loss of rental income (in some cases)
-
Optional coverage for furnishings and appliances
2. Vacant Property Insurance
If your property is currently vacant—perhaps between tenants or under renovation—standard policies might not apply. Vacant property insurance covers this interim period against risks like vandalism or weather damage.
3. General Liability Insurance
This protects you if a tenant or visitor is injured on your property. It can cover medical bills and legal fees in case of a lawsuit.
4. Flood or Earthquake Insurance
These are not included in standard policies but are essential in high-risk areas like Florida, California, or the Gulf Coast.
5. Umbrella Insurance
An extra layer of protection that kicks in if your liability exceeds the limits of your standard policy.
Can Foreign Investors Get U.S. Property Insurance?
Yes. Many U.S.-based insurers offer policies to non-residents. However, your options may vary depending on:
-
Your home country
-
Type of property
-
Whether it’s vacant, rented, or under construction
You may be asked for:
-
A valid passport or visa
-
U.S. tax ID or EIN (Employer Identification Number)
-
Property address and use (rental, vacation, flip)
-
Proof of ownership
Tips for Choosing the Right Insurance Provider
-
Work with a Real Estate-Focused Insurer Choose insurers who specialize in investment properties or have experience dealing with international clients.
-
Get Coverage Aligned with Your Investment Strategy A flip property needs different coverage than a long-term rental. Make sure your policy reflects your goals.
-
Bundle and Save If you’re investing in multiple properties, look for insurers that offer portfolio or bundle discounts.
-
Understand Deductibles and Exclusions Not all damage is covered, and some policies have high deductibles. Review fine print with an advisor or agent.
-
Partner with a Financing Expert Sometimes, financing providers like Dowise help guide investors through insurance selection by working with preferred carriers.
Real-Life Use Case: How Dowise Supports Foreign Investors?
Foreign investors who finance their deals with Dowise gain access to high LTV loans and benefit from a supportive eco system—including recommended insurance partners. For example, a client from Germany financed a rental property in Texas through Dowise and was introduced to an insurer who provided customized coverage for their needs. This streamlined process ensured full compliance with loan conditions and protected the property from day one.
Final Thoughts
Insuring your U.S. investment property as a foreign national isn’t just a smart financial decision—it’s a non-negotiable step in protecting your assets and peace of mind. With the right policy in place, you’ll be prepared for the unexpected and position your portfolio for sustainable, long-term growth.
Looking for Property Financing + Insurance Guidance?
Dowise helps international investors not only finance their U.S. real estate purchases—but also secure the right protection. From lender-approved policies to expert insurance partners, we’re here to simplify your investment journey.