There are things we pay for peace of mind, and one of them is fire insurance. It ensures that damage caused by uncontrolled fire can be recovered, and the insured does not have to worry about unforeseen expenses. After all, a fire, by itself, is already too much concern.
Insurance, such as home, car and cell phone, do not prevent unforeseen events from happening, but ensure that the customer has the property back and help in the reconstruction of structures, in the case of the residential policy. Therefore, a hiring is welcome to not have a headache later.
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The document attests to the compensation of damages for both the owner and the tenant. Therefore, it is important to understand how fire insurance works and what is its importance for the parties involved in the negotiation of a rental property. Follow all the details below.
What is it and how does it work?
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Fire insurance often provides coverage not only for out-of-control fires, but also for other adversities that are harmful to the structure. The value of residential fire insurance is different (and more affordable) than the modality made for commercial environments, whose contracting is mandatory.
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It is natural that no one likes to think about situations like this, but it is important to be prepared if they happen, after all, a fire can cause irreparable damage to a property. The contracting tenant also has an exclusive 24-hour center to assist in unforeseen circumstances.
Fire insurance protects all parties to the negotiation from any financial losses generated by accidents involving fire, lightning and explosions. So the owner and the tenant don’t have to worry about paying for repairs and renovations.
What does he cover?
Assets vary by insurer and can even include destruction of property. It is good to read the clauses of the contract carefully to confirm what the insurance coverage is , including because this can influence the amount to be paid. The items that are usually included in the policy are:
- furniture;
- home appliances;
- electronics;
- toys;
- clothes;
- household items;
- physical structure.
How to activate the insurance?
Insurers ask for some documents to prove that there was a fire, how much was destroyed and the value of the renovation and purchase of the damaged goods. It is important to remember that the amount to be paid by the insurance company corresponds to the cost of rebuilding the property, not its market price. The documents are:
- report of the occurrence of the Firefighters or Civil Defense;
- property contract (in case of rent or if it is financed);
- list with the destroyed goods and their invoices;
- three budgets for the payment of labor and materials for the renovation;
- completed operator claim form.
Who pays?
It is the owner who pays for the insurance. In the case of renting the property, he is responsible for contracting the policy, which determines the goods covered by the insurance company. This must be specified in the contract, unless otherwise stated.
This is a determination even expressed in law. According to the Tenancy Act , fire insurance is the owner’s duty, but it only covers the apartment. The building in its entirety must have condominium insurance, aimed at damages that occur in the common areas of the building.
The contracting of fire insurance in an apartment , in the case of rent, is mandatory, as is insurance for renting a house. After all, we are talking about a housing unit that is part of a larger complex, and a fire can affect the structure of the entire building.
How much?
The value of home fire insurance varies greatly depending on the insurer. It is worth researching what they cover, the amount and how you will be paid. Prices do not usually affect the budget much, as there are very affordable plans available from insurance companies or real estate companies.
It is important to remember that basic coverage insurance only covers a few items within the home, in addition to the structure itself. So, if you are looking for a more comprehensive coverage service, know that it will be more expensive.
What are the benefits of fire insurance?
This insurance prevents the work and inconvenience of having to go after repairs and purchases of furniture after such a traumatic event. Therefore, investing in property security is essential. Know some benefits to reassure owner and tenant:
Protection of the physical structure of the property
The biggest benefit of insurance is coverage of the entire physical part of the property. In addition to providing financial assistance for losses, many insurances include electrical repairs and painting services to repair damage caused to the site.
Security and surveillance
After the fire, the residents of the property are forced to leave the site, and this can lead to invasions and other problems. Therefore, insurance companies provide security and surveillance services to protect the home during the repair period.
Reimbursement of material goods
One of the biggest concerns for the resident is losing their personal belongings during a fire. The good thing is that the insurance also covers them, in addition to more valuable items, such as furniture, appliances, clothes and electronics, but remember that you need to have the invoices for these items.
It is important to remember that there are cases of goods that need specific insurance, especially if they are of high value. This includes, for example, equipment, jewelry, documents or works of art. Fire insurance does not usually cover these items in the policy.
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As you can see, fire insurance is important to avoid several unpleasant situations, whether for those who are buying or renting a property.
