Tips for hiring a homeowners insurance

In order to avoid this situation, it is advisable to follow the following instructions:

  • Examine carefully the coverage because in the same assumption of capital coverage, the insurance companies establish important differences. Each company sets its compensation scale, as well as its limits, specific clauses, franchises and exclusions.
  • Being prudent when assessing assets tends to value only the goods in which we see a higher risk of being stolen or damaged. In addition, these assets are often overvalued. On the other hand, we have valuables that do not seem susceptible to theft. For this reason, when hiring a homeowners insurance two problems arise: the over-insurance and the underinsurance.
  • To avoid this type of situation, so that in case of disaster the policy is really useful, it is recommended to make a valuation as reliable as possible of the property, letting experts advice on what is the optimal value to insure.

It is also necessary to differentiate these concepts:

  • Continent: these are the elements that constitute the dwelling before furnishing it, that is, doors and windows, walls, ceilings, etc. The amount to be insured corresponds to the cost of rebuilding the home without taking into account the value of the land on which it is built.
  • Content: it is the set of furniture and personal belongings that are inside the house, and that once valued it is desired to insure. The continent, does not usually pose problems when it comes to assessing it, since companies have a series of tables that establish the value of the square meter built according to the type of housing, location, construction qualities, etc. . . However, the content is usually much more problematic.
  • Civil liability: guarantees the compensation that a member of the family had to pay for the material or physical damages caused by their acts or omissions.
  • The legal defense: covers the expenses that may arise from a trial: lawyer, solicitor, and bail, expertise … for material or physical damage caused by acts or omissions of the residents in the insured home.
  • Safe to new value or replacement: insures our goods so it would cost to buy them back or rebuild them in case of loss. It is the modality that most interests to replace the lost.
  • Real value: insures our assets at their fair value before the loss. For example, if the appliances are already years old at the time of the loss, they suffer considerable depreciation over time. This type of insurance is cheaper, but less interesting since it is very risky.
  • First risk: a certain value is agreed with the company, which can never be above the value again. This may be of interest to insure objects such as paintings or antiques without overpricing the policy.
  • Aesthetic value coverage: ensures that, in addition to repairing the damage, it will be aesthetically good. This coverage provides a solution to avoid aesthetic damage to the home.

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