Property protection is essential, especially when it comes to real estate, which usually requires a large investment. For this, there is Residential Insurance , a product created to take care of assets and protect residents in case of unforeseen events.
This modality has a wide and low cost protection – compared to other types of insurance – having very advantageous benefits.
To help you better understand this modality, we prepared this content by answering the 11 most frequently asked questions about Home Insurance. Keep reading and check it out!
Frequently Asked Questions About Home Insurance
Table of Contents
1. What is Home Insurance?
Residential Insurance is a type of insurance to protect properties intended for housing. The product is very affordable and excellent value for money, especially with regard to the inconvenience and costs that it can minimize.
The numerous possibilities of coverage make Home Insurance a multi-risk modality, that is, it covers several possibilities of claims, protecting both the physical structure and what is inside the property.
2. What is the Home Insurance coverage?
A Home Insurance policy may contain basic coverage or those selected according to the needs of each insured. The basic coverages of a Home Insurance cover:
- Damage caused by fire;
- Lightning strikes;
- Explosions caused by household gas;
- Expenses with fire fighting, rubble and salvage.
As already mentioned, this is a customizable type of insurance and can have other coverage:
- Electrical damage;
- Robbery and theft;
- Natural phenomena;
- Vehicle impact etc.
3. What are the assets not included in a Home Insurance?
The assets not included are those specified in the policy, whose losses are not indemnified by the insurer, even if they are caused by covered events. Among the main assets not included in the insurance are:
- Precious stones and metals;
- Works and art objects in general;
- Money (paper money) etc.
4. What are covered and excluded risks?
As the name suggests, the risks covered are those foreseen and described in the contract. The excluded risks are those whose losses are not indemnified by the insurance, unless they are specifically contracted, such as:
- Volcanic eruption;
- Internal or external war;
- Fires in rural areas etc.
5. What is a franchise?
The deductible of an insurance is the value or percentage defined in the policy, representing the part of the loss that will be the responsibility of the insured in the event of an accident , that is, the deductible is the part of the loss that is borne by the insured. In short, the insured pays a percentage of the repair value and the insurance company pays the remainder.
For example, you contract coverage of one thousand reais for some damage and a deductible of 200 reais. If the loss – in the event of a claim – is $1000, you will have to bear the repair yourself. But if, instead, the loss is 220 reais, the insurance company will pay the entire amount and you will not have to pay anything.
In the case of the deductible deductible, the insured must participate in all covered losses. If the loss is less than the deductible, the insured will bear the costs alone. If it is greater than the amount of the deductible, he will have to pay the amount referring to the amount of the deductible and the insurance company the rest.
As in the above example, if the loss is 220, you will pay 200 of the deductible and the remaining 20 will be paid by the insurance company.
6. What are emergency assistance and services?
In addition to the coverage and protection that Home Insurance provides, this modality also offers other benefits, known as assistance and emergency services. These services are a form of support so that the insured does not have to hire a professional in a hurry, paying a high price for the service .
Among these services are:
- electrical services;
- hydraulic services;
- clogged plumbing;
- home appliance repair;
- Security and surveillance among others.
7. What is the difference between Home Insurance and Condominium Insurance?
A Condominium Insurance is mandatory for any housing complex . In the event of an accident and the condominium does not have insurance, it will be legally liable for losses and damages to the residents. This insurance protects the condominium and its common areas, offering greater security for residents.
Residential Insurance, on the other hand, protects the area of the residence . It is an individual and optional insurance, covering incidents that may happen to the contractor’s housing, that is, it is a protection for the property and the residents’ assets.
8. How much does it cost and how is the value of a Home Insurance calculated?
There is no fixed value for a Home Insurance or for the square meter of the property, as prices vary according to the specifications of each property and the needs of the contractor . Still, this is one of the cheapest insurances on the market. The calculation of the value must be done taking into account some important factors, such as:
- Raise the amount necessary for the reconstruction of the property: this is the first step in calculating the Residential Insurance. Conduct this survey with the help of an experienced professional – responsible for this type of service – such as an engineer or architect specialized in economic engineering and evaluation areas.
- Raise the value of belongings: this is the second step. For this calculation, it is necessary to consider the value of your belongings (prices proven with invoice), in case there is a loss as a result of any of the covered events.
With this information, the insurance broker will analyze the data correctly, arriving at an estimate of how much is needed in the event of a claim, what coverage is needed for the property and what the amount to be paid for the benefit should be.
9. Is basic coverage worth it?
This will depend on your need, basic coverage guarantees assistance in the most common situations , such as fires, explosions, lightning strikes, among other situations mentioned above.
You need to define what your priorities are, what you would like to protect and then carry out research on the coverage you need. Also investigate your region, if you live in a neighborhood where flooding is recurrent, it is worth investing in additional coverage for this occurrence.
10. Can the insurance refuse to cover any type of damage?
Yup. If the inspection proves that the damage was caused by the construction of the property, the insurance company may refuse to cover the amount of the damage . A report will identify if the problem is the fault of the construction company or if the problem is pre-existing.
Try to pay close attention to the conditions of the contracted policy, specifically to issues related to premium, payment and fractionation.
11. What types of properties are not accepted for hiring a Home Insurance?
Normally, the hiring of Residential Insurance is not allowed for properties under construction, properties listed as Historical and Cultural Heritage, properties in republics, collective housing, properties used as accommodation and properties built with combustible materials.
We hope this content 11 Most Frequently Asked Questions About Home Insurance has been useful to you.