All You Need To Know Before Hiring Insurance for Your Property

Written by: Lori Gracing
06/04/2019

insurance

The purchase of the house, as well as the purchase or exchange of the old car for a new one, is among the main desires of consumption of any person, and the reasons are several: comfort and security for the family, stability, investment, and so on.

Even so, it is common to make a car insurance and to leave aside the protection for the residence, either by ignorance or even by the lack of culture of the contracting of the Residential Insurance.

If we evaluate the idea of insuring residence, we will come across the fact that the cost into benefit of hiring a Residential Insurance is worthwhile, especially for those who own properties that are exposed to some type of risk.

How Residential Insurance Works

The Residential Insurance is what we call multi-risk insurance, that is, it is an insurance that in a single policy, offers several insurance conjugated or grouped. As its name implies, this insurance is intended for individual residential properties, such as houses, houses, apartments, whether they are in common use (permanent housing) or summer.

Residential Insurance Coverage and Assistance

There are many coverage and assistance available for hiring in Residential Insurance. In general, the coverage fall into two categories: basic and complementary (or additional).

Basic Coverage

In the main insurers, the basic coverage offers guarantees that cover the property against damages resulting from: fires, explosions (of any origin) and lightning strikes. In addition to the replacement of assets that are lost in case of some of these incidents, the coverage can also guarantee an indemnity that covers the costs with the reconstruction of the property.

Complementary Coverage

The major additional coverage is for theft or qualified theft, electrical damage, windstorm (including hail, hurricane and tornado), glass breakage, impact of vehicles and aircraft, family civil liability and home office.

Tips and care for hiring Residential Insurance

Before you buy insurance for your home, it is important that you evaluate the guarantees and the insured amount of each coverage that will be included in the policy. For this, the characteristics of the property, the existing contents (furniture, utensils, appliances, etc.) and their real needs as a resident are taken into account.

The amount insured, contrary to what many people think, should not be determined from the value of the property. Instead, it should be determined from the costs for rebuilding and replacing the assets that could be stolen or damaged. The value of the land therefore does not enter into that account, for even if your house is entirely destroyed, you will still remain the owner of the land.

To determine the cost of rebuilding, take into account the value of the square meter, including the finishes. The value of the replacement of the goods inside the house is estimated after a simple survey, done by yourself or, in some cases, after the insurer’s expertise.

It is very important that you make sure that your insurance is covering what is in your knowledge as per the contract. So that no surprise comes up at the last minute after the incident has already occurred. Do not forget that, like any other insurance, there are exclusions. These exclusions may have certain situations or items that will not be covered by your Home Insurance policy.

How much does a home insurance cost?

Factors such as the location, type of property, insured amount, amount and coverage that will be included in the policy are some of the items that influence the price of insurance.

The insurance for an apartment can have the cost 20% lower compared to the insurance of a house. This is because apartments exempt, for example, roofs such as flooding and gale, events that can cause great damage to homes. Because of its characteristics of use and construction, insurance for some types of real estate can be more expensive. This is the case with summer homes, because they are empty most of the time and become more vulnerable to shoplifting. There is more risk of destruction in case of fire, as there will be no one to resist the fire in time.

Likewise, wooden houses are more fragile in case of fire, windstorm or flood. So it is to be expected that the insurance will be more expensive for real estate that are built with this type of material. With regard to location, some of the factors that may increase the price of Residential Insurance are: high incidence of vendors, lightning, hail and floods or even a high rate of theft.

What to do when a disaster strikes

In the event of a claim, you should look to your insurer as soon as possible and report what happened. You can file the claim by phone and, in most insurers, claim can be made through the internet. However, make sure to inform your insurance broker, who will guide you as to the next steps that will be followed.

The deductible is charged only on certain coverage, such as electric damage, windstorm, impact of vehicles and office in residence, and usually does not exceed 10% of the insured amount for that coverage. Different from what happens in other types of insurance, the franchise or POS of the Residential Insurance is deducted from the amount of compensation made by the insurer.

Residential Insurance is a complete insurance with regard to the guarantees, coverage and services available for hiring. One can opt for basic coverage and a simple residential care plan.


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