Government figures show that more than 150,000 British people now own second homes abroad. Spain is the most popular destination with about 70,000 homes, followed by France with about 50,000. However many investors are failing to take out the appropriate insurance.

Richard Bowser, editor of Property Investor News says, "Failing to get the right insurance cover is just one of the many mistakes that amateur investors make. Unfortunately, common sense often goes out of the window with the first glass of foreign beer."

It may be a good idea to arrange a local insurance policy, because they have more information on the risk of storms, floods, earthquakes and landslides locally. Furthermore local premiums can prove lower than if obtained in the UK.