Home and real estate insurance is something that rarely finds a place in the budget of any family. Few of us think about potential risks and the need to reserve funds for home insurance.
Natural disasters, accidents, fires, burglaries are risks that we should not ignore, because the danger of being left without a roof over your head is real.
There are countries that require home disaster insurance. With us, insured houses are those that are purchased with a mortgage. The creditor bank itself insures the property.
When you decide to insure yourself
Currently the market offers property insurance with various combinations of covered risks and options for setting prices.
The basic insurances that are offered are – Standard property insurance , as standard with the option to purchase additional coverage and insurance, in which the liability limit is equal to the actual value of the insured property.
With this type of insurance, companies prepare several or only one set of covered risks that fix the price and in most cases cover the risks of fire, explosion, accident, theft, vandalism and some natural disasters.
For greater security, companies offer insurance that allows the standard package to include more specific risks, which are paid separately from the standard coverage package.
These are the risks from – an earthquake, civil liability to third parties, loss of rental income, etc. …
In standard insurance and with additional coverage, they have a certain limit on losses. This limit is determined by the insurance amount that you will receive when an event occurs, determined by the company insurer. The lower price of these packages makes them affordable and popular, but remember that they provide owners with minimal protection.
Amounts that you receive when an event occurs are often spent with actual losses.
The liability limit is equal to the actual value of the insured property.
With this type of insurance, customers determine the value of the property, and upon the occurrence of an insurance event, the company checks whether the sum insured in the contract matches the actual value.
It would be better to consult with specialists who will make a realistic assessment of your home. Otherwise, you risk underestimating or overestimating your property, which in any case leads to a loss of funds.
These insurances are more expensive, but in the event of an event, you will receive an amount equal to your loss.
Before signing a contract, it makes sense for research projects from the point of view of individual insurance companies to choose the most suitable for you.
Be careful that you sign and make sure that the documents you provide are correct and the information is accurate.
If the insurer has discovered inaccuracies or determines that the insured has given false information or hidden it, the contract may terminate and the amount due will not be paid.