Why it's worth insuring your home and how to do it right
Why it's worth insuring your home and how to do it right
We analyze when you can receive compensation, how to choose an insurance company and what to do if an insured event occurs.
Why is it worth insuring the home and how to arrange insurance correctly?
How does home insurance work?
This type of insurance is good to have if you own your home and want to protect yourself in case something happens to it. Fire, gas explosion, burglary, natural disaster, neighbors forgetting to turn off the faucet in the bathroom - all of these situations, you risk serious losses and even losing your house or apartment altogether. Insurance helps to compensate for losses in part or in full.
You conclude a contract with an insurance company, which will be spelled out:
what you are insuring;
which events are considered insurable;
how much you want to insure your home.
Then you pay the premiums regularly. If an insured event still occurs, the company will evaluate the damage and pay you the amount specified in the contract. In other words, everything works about the same way as with any other insurance.
What you can insure in an apartment or house
Everything, from the whole house to the decorations, furniture, and other furnishings.
It's important to remember that home insurance does not cover all movable property. Don't expect to be compensated for the value of all your clothes, jewelry, and children's toys. You may be able to insure some of your cherished possessions, but it will all depend on the insurance company.
What you can insure your home against
Data from insurance companies show that residential real estate mainly suffers from the following troubles
natural disasters;
fires;
Breakdowns in the heating, water or sewage systems;
Burglaries, break-ins and other accidents.
So you should first of all insure your house or apartment against these risks. But this, of course, is not a complete list. Insurance companies offer several more options:
gas explosion;
structural defects;
man-made accidents;
acts of animals;
Falling aircraft and their parts;
lightning strike.
It is also possible to insure your civil liability. This insurance helps you pay for damages if you cause damage to someone else's property, for example, if you flood your neighbors.
The insurance company may also cover the costs of temporary accommodation and storage of belongings, cleaning of the territory, execution and payment of documents and certificates that are necessary to restore the home.
Each insurer offers a different list of risks to choose from, or packages that include everything at once.
How to take out insurance
1. Choose a reliable insurance company.
It is important that the insurer has a license from the Central Bank of Russia. You can check this on the official website. You should also pay attention to the rates and other conditions. For example, that the company indicated in the contract all the insurable risks that are important to you.
2. Read the terms of the contract carefully.
You should understand that the main purpose of the insurance company is to make money, not to save you from ruin. Therefore, the information on beautiful insurance websites and insurance cost calculators may be slightly different from reality, and smooth out not too comfortable conditions. It is important to clarify for yourself as accurately as possible:
what exactly the company considers an insured event;
when they can refuse to pay you;
What is the procedure for damage evaluation and compensation;
What documents you will need when an insured event occurs;
What the exact amount of the premiums will be.
For example, you want the company to compensate you in case of flooding. But if you read the contract carefully it may turn out that the insured event will only be considered when the neighbors flooded you, but a pipe burst or flooding will not. It's the same with fires: some companies won't pay compensation if the fire was caused by faulty wiring or electrical appliances.
3) Make an estimate of the value of your property
You can choose how much to insure your home and everything in it. That's what the insurance company will pay you if something happens. But this amount also affects the value of your insurance.
The sum insured cannot exceed the value of real estate and movable property.
4. Find out if you can get a deductible.
A deductible is the amount you are willing to invest in repairing your home yourself. Using a deductible can help lower the cost of an insurance policy. It comes in two varieties.
5. Read reviews.
Sometimes insurance companies are happy to sign contracts and accept money from clients, but they are in no hurry to pay. They delay the process, force you to gather papers and stand in lines during working hours, they underestimate the amount of the damage.
6. Bring all the necessary documents and sign an agreement.
Your passport and the title to your apartment will usually be enough.
