Your property and your home are the results of your personal efforts. It is the ultimate good of financial and emotional importance, since you cannot imagine your life without it. However, risks such as earthquakes, fires or floods could threaten these possessions and sometimes lead to tragic consequences.
You do not believe that these risks could reach you. If you knew that tomorrow morning there would be an earthquake or a fire and after that in the location of your residence, there would be ruins and rubbish, wouldn’t you not insure it immediately? Admit it. You would most certainly do!
You will need to pay an amount for the insurance premiums, but you do not know the exact amount of your premiums. If you consider the amount of money that you spend on useless objects every month, and you ask yourself what do they really offer to you, you will realize that this amount could be spent for something as precious as home insurance.
Which factors determine the final cost of the home insurance policy?
What if I am the tenant and not the owner of the residence?
If you are not the owner of the residence, home insurance can still protect you, your personal items and household possession that may be even more vulnerable than the building. With content insurance, you can be protected from future financial losses or from damages in the inside of your home.
How can I calculate the amount of the insurance coverage for the content of the residence?
In order to properly estimate the amount of the insurance coverage for the content of your residence, you should:
- Make a list of your items.
- Estimate the cost of your items, if you had to buy them today.
With the help of your insurance agent, you will need to fill in the insurance application forms with:
The total value for the coverage of the content of your residence.
A separate list of the high value items.
What applies for high value items, precious stones, rare collections, etc.?
In an insurance policy, sometimes the parties involved understand differently the meaning of a high value item. The insurer will define a high reimbursement amount for every precious item. If you have items of higher value than the maximum amount that your insurance company defines, then the compensation that you will receive, will be limited to the maximum amount of the insurance company. In any case, there are special products with additional coverages and re-adjusted insurance premiums for the high value items.
From which risks does home insurance protect me?
There are many insurance policies with usual or more complex coverages. Still, our property may be at risk from external factors or from our own use and behavior. Our main concern derives from the risks of earthquake, fire and other natural disasters. Other risks that could threaten our residence are wrongful-malicious acts, theft, burglary, terrorist attacks or our own negligence that could lead to fire or water leaks.
What should I pay attention to, in the terms of the policy and which are my obligations?
Can I insure a property purchased with a mortgage loan?
Upon the conclusion of a housing loan, every customer is obliged to insure the property that is mortgaged, according to the agreement with the Bank. However, it is worth noting, that customers are not obliged to get home insurance by the Bank that granted the housing loan, but have the right to select freely the insurance company and insurance consultant, as long as the policy meets all requirements of the loan agreement.