What to consider when you buy home insurance?

Do I need an insurance for my house? What type of insurance is mandatory? We reveal everything you need to know when hiring home insurance. A house is one of the most precious assets that we can acquire throughout our lives and protecting it is an indispensable condition so that it can be enjoyed with […]

Do I need an insurance for my house? What type of insurance is mandatory? We reveal everything you need to know when hiring home insurance. A house is one of the most precious assets that we can acquire throughout our lives and protecting it is an indispensable condition so that it can be enjoyed with total tranquility. For that there are home insurance: a service for which the policyholder, that is, the owner or the tenant of the house, negotiates with an insurance company a contract (the policy) to protect it against any possible damage or harm that may suffer (fire, flood, theft, etc.).

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The offer to purchase home insurance is very wide, as well as the assumptions that can be protected and the amount (the premium) to be paid, which will depend fundamentally on factors such as the type of housing, the inhabitants of the property or the location, among others. In order not to get lost in the labyrinthine world of insurance we provide you with everything you need to know about the modality and conditions before opting for one insurance or another. Compare before hiring Before hiring the first insurance on the market, it is best to conduct a comparative study. The offer is very varied and it is enough to use an insurance comparator that allows you to find the option that best suits your needs and with the most appropriate coverage for you and the type of housing you want to insure.

Likewise, this study will allow you to know the general and particular conditions of the policy that the insurer can provide and thus avoid any misunderstanding when claiming coverage. According to the experts, most insurance claims are precisely due to the confusion on the part of consumers about the claims that the contracted policy covers or not. Basic and complementary coverage, in our country, the hiring of an insurance policy is not mandatory.

However, in practice, the only mandatory damage insurance in the field of housing is that of fire, as long as “it is associated with a mortgage, whose guarantee is the property itself. In fact, many banking entities link the granting of mortgages to the contracting of insurance, although it is possible that this will change soon with the new mortgage law,

In any case, there is no legal obligation to contract greater risk coverage on housing, but having home insurance is highly recommended, since it guarantees protection against any contingency and means a substantial saving of money.

In addition, most usually take out multi-risk insurance, since it gathers and guarantees the basic coverage of unforeseen events that may affect the home, us and third parties in a single policy. Among these coverages are:

  • Damages of the place: it is about the coverage of the replacements due to accidents (fire, flood, theft, etc.) that may affect elements such as ceilings, floors, installations, windows, etc. Each insurance company determines which assets and claims are included and excluded from the policy coverage.
  • Content damage: it is the part of the insurance that covers the repair or replacement of furniture and other household goods. As the spokesperson of OCU indicates, “Ideally, companies would compensate for the” replacement value “, that is, for what these belongings would cost if they had to buy them again.” However, it is normal for insurers to cover these objects for the “real value”, that is, to discount the depreciation they suffer from their use. Therefore, the expert recommends looking carefully at this option.
  • Legal defense: this coverage includes criminal defense, rights as owner or tenant, as well as other services offered by the insurer and allows you to carry out the claim of damages that a third party may have caused to your property.
  • Civil Liability: if there is an essential coverage within the home policies this is the civil liability. This coverage covers all repairs and compensation that the insured must pay for damages caused to third parties (water leakage, fire, etc.).
  • Any accidental risk: Among the extra coverage that you can hire for a home, insurance companies offer many and varied options that allow extending coverage to other accidental causes: from pet insurance, home assistance, robbery on public roads, etc. Everything will depend on your particular needs.

In any case, there are some circumstances in which it is possible to assess whether or not to contract the continent and content coverage. On the one hand, for those of the continent, if the house is integrated into a community of owners, these usually or may include a policy for damages throughout the building, therefore, before contracting an individual policy consult before that of the community. On the other, for content, you should assess whether you have a well-equipped and furnished home, in which case you should hire this coverage.

Correct valuation of the continent and the content. Once the type of insurance that we will contract has been decided, it is essential to make a correct valuation of the continent and the content depending on the reconstruction, from which the value of the land must be excluded, which is never assured. This value, which can vary between $ 500 and $ 2,000, will depend mainly on the type of housing in question, for example, if it is a new or used, single-family home, if it is a flat, of the qualities, of the area in which it is located, of the province, etc. In any case, we must pay attention to the so-called “proportional rule” by which companies make compensation proportional to the declared value. Hence the importance of properly assessing housing since, if a lower calculation is made, the compensation in case of accident will be proportionately less. To ensure a good assessment in this area, it is advisable to consult an expert to advise you in the best possible way.

Australian Construction & Development Services is a business with over 30 years of experience in the field of construction, repairs, building maintenance and insurance.