Archives: June 21, 2019

Tips for Choosing an Insurance for Your Property

Having a home of your own is a great achievement for many people. Ensuring that the much-desired construction or purchase is well insured can prevent headaches and allow quieter nights sleep.

But knowing how to choose an appropriate insurance policy can make all the difference so that the property is well covered against the possible risks. In addition, it’s critical that the premium amount (the amount you pay by insurance) fits in your pocket: even if it’s within budget limits, review your bills to include the cost of property insurance. Did you know that this type of insurance is lower than that of automobiles?

To help you when choosing the most appropriate insurance, we’ve listed four tips:

Evaluate the types of coverage

Evaluate the types of coverage

Before you start researching, think about what you want to protect. The coverages can vary from those that include the property to those that include the movable goods inside.

Generally, the most basic insurance covers only indemnify the damages caused by fire, explosion or lightning. From this initial coverage, which is mandatory for any insurance, you should assess whether the location where the property is located is exposed to risks that should be provided in additional coverages.

Buildings located in areas where flooding occurs frequently may benefit from additional coverages that go beyond the main. But people living in apartments will not benefit from insurance against the impact of vehicles, for example.

Among the additional coverages, insurers often offer insurance against flooding, glass and mirror cracking, theft or theft of property, family civil liability, and employee integrity. Other coverages may also compensate for damages caused by windstorms, hail rains, impact of vehicles or aircraft, electric damages, among others.

Consider movable property insurance

Consider movable property insurance

If you are also interested in the coverage of movable assets, that is, the objects that are inside the property, you will need to carefully lift all valuables you have inside. If the insurer does not do the previous survey, prepare the list to be attached to the policy with all items that will need coverage, including copies of invoices for items such as furniture and electronics.

In this case it is important to inform your insurance broker, or the insurer, of all assets that will be indemnified in case of damages. Reading the contract can be a boring and time-consuming process, but knowing the plan you are contracting to avoid unpleasant surprises in the future is critical.

Check out some items listed by the Superintendency of Private Insurance of the Ministry of Finance (Susep) that are not included in the insurance, even when the damage is caused by covered risks.

– Stones, precious metals, works of art and other valuable goods;

– Manuscripts, plans, projects, paper money, stamps, checks, credit papers, coins minted, books of account, etc .;

– Goods of third parties, received in deposit, consignment or guarantee.

Do the math

Do the math

Many people do not know, but the cost of a very complete insurance can vary between 0.5 and 1% of the value of the property. Compared to the insurance of a car, which usually ranges from 3 to 9% of the value of the vehicle, it is easy to see that protecting the home is not a privilege for a few.

It is important to know what influences the value of premium insurance when making the decision. This cost can be impacted by issues such as value of insured amount, location and use of the property (residence or vacation), type of construction and contracted coverage.

When defining the amount insured, it is common not to insure the total value of the property and the assets. Basic cover generally provides for compensation between 50 and 60% of the market value of the residence and the furniture and electronics.

Search well at time to hire

When it comes to closing the deal and taking out insurance, the broker can be extremely useful to guide you in choosing the insurer and the best coverage for your property. Remember that, as provided by law, the commission received by the professional is already part of the amount paid to the insurer, regardless of his participation in the hiring.

Procon indicates when it comes to acquiring the policy:

– Check that the brokerage firm and the insurer are authorized to work with Susep;

– Search and compare insurance values ​​from as many institutions as possible;

– Read carefully the proposal and the conditions of the contract;

– Make sure the proposal contains the premium amounts, insured amount and coverage.

With these tips it is much easier to choose the insurance of your property!


Early repayment of the mortgage loan

Conditions of prepayment of mortgage loan

mortgage loan

The prepayment of the mortgage loan is authorized by the terms of the credit. Be careful though to check the terms in the contract signed with the lender before a notary.

The law also allows the lender to refuse a partial prepayment that would be less than 10% of the initial paid-up capital.

Penalties in case of early repayment of mortgage loan

Penalties in case of early repayment of mortgage loan

Financial penalties may be claimed by the lender in the event of early repayment of the mortgage life loan. They vary according to the repayment methods and the period:

  • When the prepayment is made before the fifth year, the penalties represent four months of interest in the case of paid-up capital at one time and five monthly installments for a paid-up capital periodically;
  • Between the fifth and the ninth year, the indemnities represent two months of interest for a paid-up capital at once, and three monthly installments for a paid-up capital on a regular basis;
  • If the repayment is made in the tenth year, the penalties are one month of interest for the paid-up capital at one time and two monthly installments for a paid-up capital periodically.

How to make an early repayment of the mortgage life loan?

How to make an early repayment of the mortgage life loan?

When the borrower wishes to make an early repayment of the mortgage life loan, he must notify the lender promptly.

After having made sure to have the necessary funds in a bank account, the latter sends a registered letter with acknowledgment of receipt to the institution where he took out his loan.

This letter must imperatively specify:

  • Contact information of the borrower;
  • The contract number of the loan;
  • The amount of the early repayment if the latter is partial;
  • The number of the account that will be used for the transfer;
  • A request for confirmation of the amount of the penalties.

Early repayment of the mortgage life loan on the best terms

mortgage life loan

The prepayment of the mortgage life loan resulting in financial penalties, it is essential to calculate the method that will result in the least costs.

As a first step, you must consult the amount of the nominal rate and establish a formula:(amount of capital received x nominal rate) / 12 = amount of monthly interest.

Then you have to take into account the loan start date and the desired early repayment date, in order to pay a minimum of penalties.


Household insurance – to protect household contents against damage

Everyone should have a household insurance. In addition to the liability insurance, disability insurance and retirement savings, home contents insurance is one of the absolute compulsory insurance.

The household insurance as a meaningful property insurance for every household, whether small or large! This does not apply to homeowners. Also, who lives in an apartment accumulates over time a significant amount of assets. Quickly you can lose the expensive book or CD collection, the computer, the stereo or even the flat screen TV: by a burglary, by a water pipe break, by a fire, a lightning, storm or hail. With a corresponding household insurance (or also called: household insurance) is here perfectly secured, because it takes in all these cases.

What is covered by household effects?

What is covered by household effects?

Basically, household contents insurance covers all the objects of a house or apartment. So the furniture and the entire household. The condition is that the items are in the insured house or the insured apartment. This includes the garage or an annex belonging to the house.

 What is insured with household insurance?

Even if you store a canoe, a rowing boat or a bicycle in the house, cellar or shed, these belong to the household contents and are insured by the contents insurance. The same applies to the objects mounted on the house such as the satellite dish or the awning on the house or balcony. Also garden tools such as lawnmower are insured, as well as the fitted kitchen.

Something different is the case with objects in the garden. Items that are in the garden are not necessarily insured – this depends on the insurance. Some insurance policies include garden furniture or clothes that are on a clothesline in the garden or on the balcony, others not. Pay attention to this if you take out a household insurance – but only up to a value of 300 to 500 euros.

Expensive garden furniture should be stowed after use necessarily in a lockable room, so they are mitversicherichert in any case and you experience in bad surprise in case of damage.

By the way, home contents insurance is not restricted to one’s own four walls. Because of the fact that it is an integral part of this type of insurance, it also provides insurance coverage outside the agreed place of insurance.

Outside insurance is particularly valuable, as the insured person has full insurance cover at work, on the road, in the car or in the hotel room. Some providers even grant this in the hospital. Outside insurance also affects many providers in the event of theft.

And even items that have been put into the repair are also insured up to a limit of 10,000 euros or a maximum of 10% of the sum insured. When concluding a contract, it is important to pay attention to the point of external insurance and you should make sure which places are all insured.

By the way: vandalism is also insured. This includes the destroyed door lock in the event of a burglary or even a burglary attempt.

Beware of valuables and cash

Beware of valuables and cash

A safe is usually required for high cash and expensive valuables!

Who kept home special expensive valuables or even a lot of cash, which should definitely buy a safe, because that may not require insurance a certain amount, so that the insurance coverage. Also, insurers may set a cap on replacement.

Valuables include cash, check and credit cards and jewelery, as well as works of art, antiques and hand-knotted carpets. With antique furniture, there are no special regulations for storage.

What risks does household insurance cover?

Basically, the insurance coverage of a household contents insurance includes damage caused by fire, lightning, burglary, tap water, storm and hail. But even if an airplane crashes on the house pays the insurance. Damages caused by a possible war or an incident in a nearby nuclear power plant are not insured.

Natural disasters such as floods, landslides or avalanches must also be insured separately. Here, the protection of conventional insurance does not apply. Attention! Glass breakage is also not always insured. Often a glass insurance (also: Glasbruchversicherung) is offered as an option.

Make sure your insurance includes damage during thunderstorms. New insurance contracts usually offer this protection, but those who have an older contract, should check this necessarily. If a lightning strikes in a neighboring house, tremendous voltage can flow through the power lines and overload all connected devices and thus destroy them. That can be very expensive.

What do you have to pay attention to?

Over the years, household effects are growing. The household insurance should necessarily grow according to the sum insured. Those who do not adjust the maximum value often experience a rude awakening in the event of damage. Because the insurers only take over the damage up to the contractually agreed maximum sum.

When it comes to home insurance, it is important to check them regularly. If that is too expensive, you can also calculate the value according to the living space. The rule of thumb here is: 650 euros per square meter of living space. For an apartment with 80 square meters, this results in the coverage of 52,000 euros. Important: the amount of 650 euros is fixed. You can not set another amount. The advantage: for insurances that underlie this lump sum, the insurer waives the objection of underinsurance. In the event of damage, this means that the insurance company does not check if the customer is underinsured, the case may be.

The disadvantage of this form of insurance. The insurance pays a maximum of 52,000 euros for the exemplary 80 square meter apartment. So if you keep items with a value of more than 52,000 euros in your apartment, you should refrain from this insurance method.