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
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
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
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!