Home Insurance
Do I need insurance to protect my home?
Many people give little importance to the insurance until you have a claim. So the decision to take out a policy of insurance depends on the risk tolerance of each person. Our duty as real estate agents is to explain to our clients the importance of hiring a policy to protect your investment.
There are different types of policies; however, in the field of real estate, insurance coverage most important are designed to protect: The internal structure and/or external of the property:
- The personal items inside the property
- Third-party damage (accidents within the property)
- Damage to other property (in the case of condominiums)
How to choose the right insurance for my property?
There are various kinds of insurance, and not all owners are in need or looking for the same type of coverage. Therefore, it is desirable to clarify the coverage of the policy, their restrictions, exclusions to cover its potential risks. The most important elements to take into account in making the decision on the type of coverage that you need are:
- Use of the property: Investment, rental, vacation home or primary use
- civil Responsibility to ensure:
- Protect yourself against legal action and medical expenses
- Protection against damage to other property:
- Personal objects, and the internal part of the property (floor, walls, ceilings, electrical installations, computers, or air-conditioning)
- Location:
- If you are in an area prone to hurricanes, and is generally a policy optional)
- If you are in a flood zone (as required by the government and lenders,
- property Type:
- House and townhouse: structural protection, flood, accident and hurricanes
- Condos: The buildings tend to have a general policy (master policy) that covers the structure and common areas against flooding and loss
- Number of properties: If you have multiple properties, you have the option of using insurance “umbrella” that allow you to dilute the cost of the policy.
What are ways to reduce the cost of the policy?
- Increase your deductible. As the owner you can save money if you increase your insurance deductible; that is to say, the amount that you you pay when you results a claim, and, from which, starts the obligation of the insurance to cover the balance. This is one of the most common ways to keep down the cost of the insurance and, without doubt, is a great way to save money, always have available the amount of the deductible at the time of a loss.
- Install an effective system of alarm. insurance companies give a discount for having an alarm system.
- Try to pay for your account claims under, because the claims frequently are the decisive for the insurance companies set a higher value to the premium. Do not forget to ask the advice of an insurance broker at the time of purchase of your property and if you already purchased it is never too late to assess the conditions, terms and coverage of your policy.