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What to look for when buying home or apartment insurance

HOUSE AND APARTMENT INSURANCE IS INCLUDED IN THE GROUP OF PROPERTY INSURANCE. THE CONCLUDED POLICIES ARE VOLUNTARY, AND THE SUBJECT OF PROTECTION IS MAINLY A BUILDING OR A DWELLING WITH FIXED ELEMENTS AND HOUSEHOLD MOVABLE PROPERTY. THE OFFERS OF INSURANCE COMPANIES DIFFER IN TERMS OF PRICE AND SCOPE OF PROTECTION, SO BEFORE BUYING A POLICY, IT IS WORTH FINDING OUT WHAT TO PAY SPECIAL ATTENTION TO.

SCOPE OF PROTECTION

Individual insurance policies differ in terms of the scope of coverage. A good policy should protect primarily against random events caused by the forces of nature, fire or the so-called higher power. Natural risks include, for example, a hurricane, hail, torrential rain, snow or a lightning strike. Fire incidents should include fire, smoke and explosion. Force majeure means events such as the fall of a tree or other object onto the insured property for which no one is responsible.

In addition to protection against random events , home or flat insurance should also cover theft. Please note that if you buy this risk, you may have to pay an additional premium. Usually, compensation is paid in the event of burglary, when property was seized after the thief breached locks or other security. In a situation where there is an ordinary theft with no signs of burglary or impudent theft in front of witnesses, compensation will not be paid. When buying home or flat insurance , it is worth checking the general terms and conditions of insurance and checking the type and amount of security required by the insurance company. 

ADDITIONAL RISKS

Home or flat insurance can extend to many other risks. One of them is civil liability in private life. If such a risk is purchased, all household members are protected against damage caused to third parties. Thanks to this, victims of households can count on compensation from the insurance company to cover the losses incurred. Activities of private life include the care of minors, animals, recreational sports, as well as the use of a house or apartment. Failure to take out civil liability insurance in private life means that in the event that the window of a neighbor’s window is broken by children or his apartment is flooded, it will be necessary to pay compensation out of his own pocket.

Insurance coverage may also be extended to include accident insurance. The subject of insurance is the health and life of all household members. Depending on the terms and conditions of the accident insurance, it may cover permanent health impairment, death of the insured, surgical operations of the insured and reimbursement of treatment and rehabilitation costs. The amount of the benefit that can be obtained depends on the selected sum insured.

Home or flat insurance may also cover assistance. People who decide to purchase this service can count on assistance in the event of sudden and unexpected events and failures. Basically, there is a division into catastrophic, health, medical and family assistance. As part of the assistance service, family members can count on accommodation in the event of the destruction of the insured house or flat, professional intervention in the event of a breakdown, assistance from a psychologist or nurse, as well as care for children and pets.

SUM INSURED AND LIABILITY EXCLUSIONS

Due to the fact that home or flat insurance is voluntary, the policies offered by individual companies differ significantly. When choosing an insurer, many people are primarily guided by the price. This is a bug. The scope of many cheap policies is very limited, and the insurance covers only selected risks. In order to avoid misunderstandings, it is recommended to select policies in the all risk formula covering all random events.

Please note that the amount of compensation to be paid in the event of a loss depends on the sum insured, which is the upper limit of the insurance company’s liability. The sum insured should correspond to the value of your property. Setting it too low may result in underinsurance. If the sum insured is too high, it will result in overinsurance. 

Before signing the policy, it is worth looking into the general terms and conditions of the insurance and taking a closer look at the section entitled liability exclusions. It is here that the events for which the insurance company is not responsible are listed. People who want to take out a policy that protects their house or apartment against flooding should pay attention to the gaps. In some insurances, protection against flooding does not start until 15 or 30 days after the contract comes into force. If the event occurs during the grace period, the company will not pay compensation.