All you need to know about home insurance
In Spain there is no obligation to take out home insurance , except for mortgaged homes in which case the bank with which we sign the mortgage request the least out insurance to protect the continent, that is, the dwelling itself . Thus, in case of loss the bank will recover the cost of the property.
However, not having home insurance can be much more expensive , since any slight impact on our housing as a leak, you may be charged about 300 euros while the average rate of home insurance is around 200 euros . If we consider that each year claims reported home insurance amount to five million, the risk of some type of incidence is high.
The most common accidents are caused by water damage, as leaks and flooding. Thefts and fires, although not among the most common incidents of home insurance , if they are the most costly for companies.
Most of the houses in our country has taken out insurance (76% in late 2014) to protect your home and property.It is a widespread insurance mainly due to its connection with mortgages although all homes should have one of these insurance whether or not linked to a mortgage loan.
What coverage should include home insurance
Home insurance should cover damages suffered by our house, both the building and our property and we cause damage to third parties. However, it is possible to hire these coverages jointly or separately. To help you understand what this coverage and usefulness are, then we detail what you can find in the conditioned home insurance:
Liability: coverage is guaranteed that if ocasionemos damage to third parties the company our home insurance bear the cost involving the repair of these damages.
Continent : refers to the building (roof, windows, structure ...) itself. Coverage continent is what guarantees that in case of home insurance will cover the costs of fire or structural damage caused by water, for example.This coverage is mandatory if we hire a mortgage because the bank needs a guarantee that will recover the value of the property if an incident occurs.
The continent which sets the value of a house would rebuild after a serious accident and, generally, companies estimate their value taking into account aspects such as the year of building, where the property is located, etc.
Content : This coverage includes goods that are inside our home as furniture, technological equipment, personal belongings, etc. At this point we should pay attention to whether the home insurance contract states that receive compensation for loss of property value will be again (which cost such goods when bought) or actual value (that value again minus depreciation for use and age).
A basic add other optional coverages that complete the offer of insurance to protect our home. Guarantees such as damages caused our pets, the fraudulent use of credit card theft outside the home or services such as home care or locks, among others.
How to calculate the content of home insurance
Calculate the value of the contents of our house, that is, of all our goods, it is not always easy. If we overestimate its value will be paying a higher premium than necessary but if, on the contrary, underestimate, in case of accident compensation will not cover all of our losses.
To properly assess the content of our home insurance is important to pay attention to the following points:
1. Within the content ranging from furniture, appliances and electronics such as computers and televisions, to clothing and other personal belongings.
2. If, in addition to the usual items, keep jewelry or valuables in the home is necessary to define the policy. We refer to such artworks, garments or collections worth more than 1,600 euros or jewelery with an amount exceeding 10% of the total insured. Some companies do not include these objects between your toppings or just compensated with part of the value of objects in case of disaster. Its inclusion in the home insurance usually involves an increase in the cost of the premium, as the total sum insured also rises.
3. To avoid problems with home insurance company if you have an accident, you should take the time necessary to define the content secure. To do this we recommend going room by room and make a list of the assets of each, also including the assets of special value.
4. We note that there are certain goods that can not be included in the content, as the company will not cover in case of accident. It is, for example, assets that are not owned by the insured although at the time they are in your home. Precious stones and metals and pets are also excluded.
Once we are clear what kind of property can include in our home insurance and what is its value, we can get an idea of the approximate amount to be included in our contract home insurance. However, there are tools that allow us to make an estimate of this value by entering certain information such as the surface of the housing, the number of occupants, if we have safe, etc. If we are not objects of special value these tools allow us to get an idea of what may be the just compensation.
Once capital is defined to ensure safe time to compare, if you want to know what the cheapest home insurance are our clinic best buy.
The problem of underinsurance in home insurance
When calculating the value of our assets we can make the mistake of overestimating or underestimating its value, which could cause different problems.
In case you sobreasegurado, ie, if we have estimated a higher value than they actually have our goods, we will pay higher premium for our home insurance but in case of loss the company will check the value of lost assets and were only indemnify its actual value and not for that overstatement, meaning it will have paid more in our premium at all. In addition, the company can check whether there was bad faith to extend the value of the goods and may not indemnify considering fraud.
By contrast, the underinsurance is to value our assets below their real value. In this case it may have to take a lower premium on our home insurance but what will happen in case of disaster? Naturally, we only compensate the company for the value we have secured and we have to take us the rest of the cost of the damage caused by the incident. For example, if we value our assets 10,000 euros but the actual cost is 20,000 and suffer a fire, the reset our insurance worth 10,000 euros, we have to bear 50% of the remaining cost.
Some companies estimate there are about 10 million households in a situation of underinsurance in your home insurance in Spain. To avoid infraasegurar our home we analyze in detail what is the cost of our goods and avoid reducing content of the policy to save on the premium. Also, if we do not clear can we allow ourselves to advise the company to make this calculation.
However, the situation of a home can vary after year so it is advisable to periodically check to make sure the policy suits our needs at all times.
Extra home insurance coverage
In recent years, with the fierce competition that has seen the insurance sector in our country, the companies have extended and enhanced its range of home insurance with the inclusion of different coverages that can make our lives easier. Most of these additional services not add significant cost to the insured and nearly all include some companies to improve their offer and retain their policyholders.
Here we we detail what extra most interesting coverage of home insurance are:
1. Computer assistance: assistance when we have a problem with your computer or tablet may seem expensive but are already many home insurance that include this service between their coverage. Normally cover repairs and in some cases remote support to solve problems children and even antivirus installation.
2. Electronics Repair: virtually all home insurance midrange include this coverage. This is useful, since the repair or replacement of appliances such as refrigerators and washing machines, for example, can be very expensive, and we can not always assume an unexpected expense of this type.
3. DIY at home: is one of the latest Extra toppings but has spread among many home insurance companies.Through this service, the insurer offers the possibility of a professional or team of professionals DIY help us with tasks such as hanging pictures, assembling a shelf, change the color of a wall, etc. Each insurer sets a number of services available a year or a number of specific times.
4. Travel assistance: if you travel regularly reviews the protection offered by the home insurance when you travel. Usually, this service covers aspects such as breakage or loss of luggage or medical expenses.
5. Protection unemployment . Especially after the crisis many policyholders are interested in the products and coverage that protected them against prolonged unemployment Some companies include this guarantee in home insurance , usually covering a specific number of monthly mortgage payments if the breadwinner loses his job.
6. Medical assistance : in some home insurance policies also benefits related to medical care, such as telephone support 24 hours a day and information about nearby medical centers, clinics and pharmacies are included, etc.
7. Pets : If you have pets we will be interesting to hire a home insurance that includes some coverage for them. In some cases, home insurance includes liability coverage, that is, the damage that can cause your pet to third parties up to a limit that can reach 300,000 euros.
8. Other benefits : in addition to the usual toppings home insurance can also cover related to leisure and wellness as discounts on travel, event ticket services, etc.
How to save on home insurance
Hiring a good home insurance is essential to protect our house and our property unexpected. But sometimes the price can become a handicap for choosing the most comprehensive home insurance. In the market there are many companies and products capable of adapting to the specific needs of all types of homes, from homes to the center city or second homes on the coast to single-family homes in rural areas. To choose that home insurance designed for us and not overpay in the premium, we recommend following these tips:
1. Compare deals: before hiring a home insurance is essential to analyze the offers of all companies in the market and see what products are best to our needs and adapt our pocket. Currently you can find very similar to insurance premiums ranging up to more than 100 euros, so if we want to save, the easiest and fastest way is to use a comparison tool such as Kelisto. In less than five minutes we see what home insurance is the most attractive.
2. Check with your car insurance company: in order to retain customers insurers often offer attractive discounts to their customers so that they hire more safe with them. Therefore, if you already have car insurance or talk to your health insurer to see if you can enjoy a discount by hiring your home insurance.
3. Hire only what is necessary: double check the policy and avoid hiring those who do not need coverage. For example, if you want to insure a house on the coast where rarely bad weather, maybe you can do without coverage to cover damage from frost and snow.
4. Rate the content appropriately: we have already talked about the risks of underinsurance, which reduce the value of your assets to save is not a good choice. In any case check that you have not overestimated the content not overpay.
5. Check whether certain improvements to your home would lower your premium: sometimes install an alarm or place grates get lower insurance premium home to reduce the risk of theft. However, not always worth it. Analyzes cost and if it compensates the reduction.
6. No fractional payment: usually split the payment of the premium makes the total cost of home insurance increases, so before choosing this option looks good whether it is worth.
7. Do not duplicate coverage: check the insurance covers you and your community to certain incidents, such as theft or damage to common areas such as the garage or cellar, and avoid those guarantees include in your policy.
8. Aware of the renewal: if you want to save on home insurance insurance not renew automatically. Pay attention to the renewal date and compare offers before deciding if you continue with your current insurer.Remember if you want to cancel your policy must do two months before the expiration date.
9. Check the policy providers: make sure your home insurance includes professional services near your home.Otherwise, in case of an emergency you may not be able to expect and you must resort to someone close paying the cost of your own pocket.
Home insurance exclusions
Like other insurance, there are certain situations in which our home insurance does not offer coverage and to which, therefore, we bear the cost of the damage if they do occur.
Even in the most expensive policies, the higher end, there are some exclusions to keep in mind to avoid unpleasant surprises in case of disaster. Here we tell you what those are situations that your home insurance does not cover :
1. Facilities in bad condition: if the damage occurs because our house is in poor condition due to lack of maintenance is very likely that the company will not take care of the damage claim. For example, if we have a pipeline into disrepair causing a flood we will not receive any compensation or the problem will be solved, because the owner is responsible for maintaining the premises in good condition to avoid accidents of this type.
2. Breaks : in the home insurance breaking glass, marble and other health but is included rather than suffer a break will be excluded except that we have a home insurance that includes coverage for any accidental risk.
3. Damage caused by cigarettes or other objects improperly discarded cigarettes can cause fires and objects that are near a heat source. In this case the company does not offer compensation.
4. Theft: companies distinguish between robbery and theft within the household insurance policy. Theft occurs when subtracting the good is produced without force. For example, we leave an open window or door and steal home. It should check what insurance covers both cases.
5. Real outdoors : the damage caused outside the dwelling itself, ie, the theft of goods or damage to gardens or patios excluded from the policy unless otherwise agreed with the company before signing home insurance.
6. weather damage: if the policy provides for damages for rain and wind, so that they are covered rain or wind that caused must exceed a certain intensity that the company finds a weather report.