home insurance is a tool that serves to protect our house from possible unforeseen events such as water leaks, inclement weather, fire or theft. This type of insurance also covers material and personal damage that these extraordinary situations can cause to your neighbors, in which case your insurer will bear the cost of the damage caused.
Not having home insurance in these cases implies taking responsibility for all the damages that happen to your home or caused by a third party at an economic and civil level, which can mean a significant sum of money. So, if you are going to buy a house, it is important that you value this option.
The home insurance offer is very wide, and the different companies offer products and policies adaptable to all types of clients and properties. The great challenge, in most cases, is to choose the best home insurance according to your interests, assessing its degree of protection on:
- The continent. That is, the protection of civil works as such, including structures, walls and fixed installations of water, gas or electricity.
- The content. In home insurance this term refers to all those real estate, household goods or electrical appliances that are inside the insured home.
- Civil Liability. The Civil Liability of a home insurance covers, on the one hand, material and / or personal damage caused to a third party by your own actions (or by people under your responsibility, such as your children) and, on the other, Damage caused directly or indirectly by your home to others (for example, if there is a water leak in your house and your neighbor has damp from it).
Types of home insurance
Depending on the degree of protection on the container, content and coverage of Civil Liability we find three main types of home insurance:
They are the most basic home insurance and serve to protect the structure of the house. That is, the continent. The general conditions, economic limits and guarantees of damage policies may vary from one company to another, although almost all cover only those caused by a major cause: such as fires, explosions, lightning, collisions, vandalism, subsidence or smoke.
Multi-peril policies cover both the container (structure of the home) and content (goods, furniture and fixtures contained in the home). They also include a basic coverage of Civil Liability and damages caused to third parties.
If you plan to take out insurance of these characteristics for your home, you should know that there is a great diversity of modalities. We advise you to find out which one interests you the most depending on your needs, the type of home, etc.
Loan amortization insurance
Loan amortization insurance is basically life insurance linked to a mortgage or personal loan. This type of home insurance is usually quite basic, and its objective is to guarantee that, in the event of death or disability, the debt you have with your bank will not refer to family members, but will be assumed by the insurance company.
What kinds of contingencies does home insurance cover?
Although it depends on each case, the main contingencies that home insurance covers are:
- Material and personal damage caused by fire (fires, explosions or implosion of appliances and smoke).
- Material damage caused by atmospheric phenomena (wind, snow, rain, floods, lightning, etc.).
- Material damage caused by water (water leaks, breakage or misalignment of pipes, taps or stopcocks, failure to close taps, etc.).
- Theft, robbery or attempted theft of property, jewelry and valuables, and other damage caused to the home or furniture by said incident.
- Crystals or similar (windows, fixed mirrors, sanitary ware made of earthenware, marble, granite, countertops, etc.).
- Impact of the aforementioned material damage on pets and companion animals.
- Aesthetic damage to facades, adjoining houses, etc.
The protection of these unforeseen events will depend on the insurance you have contracted. In addition, practically all insurers allow the inclusion of clauses for the extension of the basic guarantees of their policies in case of urgency or very specific needs.
Hiring home insurance is always recommended, but when is it mandatory?
Hiring home insurance is only essential when you buy a mortgage. In fact, the current Mortgage Law requires you to have this type of insurance if you are going to buy a house with a loan, being one of the essential requirements for banks to grant you the money.
Even so, it is recommended that all owners have home insurance, since it is easy that at some point some of the unforeseen events that cover this type of policies arise.
When choosing the best insurance for your home, it is especially important to review the conditions of Civil Liability, especially if you have neighboring neighbors and / or on the lower floor. Also, if under your floor you have a commercial premise such as a restaurant, a jewelry store, a pharmacy or an electronics store. In case of damage, the liability limit will be marked by the type of insurance you take out and its coverage, and it should be reviewed with caution.
If you are renting, it is not mandatory to take out home insurance. However, and as in the previous case, it may be convenient to protect your assets with an insurance that covers the contents of the home and Civil Liability. It is also recommended that, before signing the lease, the tenant is informed about the type of insurance that the homeowner has to know how to act in case of unforeseen events.
Advantages of purchasing home insurance: the opinion of the experts
Civil Liability is one of the most important guarantees offered by any home insurance and is one of the main reasons why at Sky Marketing we advise hiring this type of product. In addition, thefts in homes are more frequent than we imagine, and home insurance usually covers both material and personal damage in thefts and robberies inside the home as well as those that the owner and his family could suffer on the street.
Generally speaking, home insurance is the best way to save and avoid repair costs. It is also a guarantee of peace of mind. For example, if you have the misfortune of suffering a serious accident that destroys your home and you do not have home insurance, you will have to bear the entire cost of the reconstruction, with the outlay that this implies.
On the other hand, in the event of unforeseen events or accidents that affect the home, insurers act as legal advisers who answer your questions and take care of all the paperwork to request compensation, reports, etc.
If you are thinking of taking out insurance for your new home or if you want to change the one you already have, it is important that you get professional advice. In all cases, it is essential to review all its conditions and coverage according to your needs (characteristics of the home, if you have small children, type of compensation of the policy, etc.).
At Tajarat properties we are experts in real estate services and we accompany our clients throughout the purchase process, including advice on the best mortgages and also on the best home insurance. If you have questions, contact us .