How to choose our insurance
Damages covered by the policy, and the price and duration of the contract are some of the factors we need to take into account.
Dangerous situations seem to crop up at any time, signifying the growing importance of insurance. The real estate world is vast and extremely varied, so it helps to consider the types of situation we may face and which are the most influential factors in helping us make decisions.
Different Models
- Fire insurance: this is a compulsory requirement of the bank when applying for a mortgage. It’s the most basic insurance.
- Multiple-risk insurance: this offers much wider damage cover than the basic fire insurance. It covers damages both to the home and to the contents therein, from robbery, to broken glass and flooding, among others.
- Life insurance: when applying for a mortgage, the bank may offer a life insurance which covers the cost of the loan amount in the event of disablement or death.
- Unemployment payment protection: banks may also offer a policy which pays the borrowers repayments in case they should become unemployed.
- Ten year building damage insurance: this is a compulsory insurance which housing developers have been obliged to hold since 2000, which has a commitment period of ten years. It’s an insurance that cannot be annulled even in the event of a an accident, so if any claims are made during the ten years, the policy will cover all the insured damages.
How to save
- Cost analysis: nowadays the variety of insurance companies is so great that it can be difficult to choose between them. We have to analise the cost of different policies, which may sway us from one to another. In this sense, we'd have to distinguish between two types:
- Company policy: covering the cost of the damage.
- Reparation policy: es la que repara el daño. - Busque diferentes opciones, sin atenerse sólo a una compañía concreta, y analice su estabilidad.
- Look for other discounts on top of those offered by your insurance company.
- Try to stay with the same company: this may get you a special bonus or discount for being a loyal customer.