Homeowners or tenants may need to purchase comprehensive homeowners insurance. Many insurers offer this type of offer. In order to choose the best suited to your situation, you must take into account five main criteria:
- The amount of property to be insured
- The amount of the deductible
- The method of compensation
- The risks covered
The status of the insured.
Here is an article presenting these 5 criteria to find one of the different offers on the market.
Criterion 1: Amount of property to be insured
The home and multi-risk insurance covers not only the insured home, but also all the property it contains: household appliances, furniture, dishes, etc. The elements taken into account are therefore numerous.
To determine the price an insured will have to pay, he must first estimate the whole. The best way to estimate the value of the objects to be insured is simply to sum the bills (if you have kept them) that correspond to them. Look Forward: Homeowners insurance agents in Spring Texas
The insurer then uses an obsolete factor to determine the present value of your property and deducts the amount of compensation in the event of a claim. The estimate will be revised upwards each year by the latter who will have to take into account the expenditures made during the year to equip the housing.
In the absence of an invoice, the insurer can still provide a useful opinion: taking into account the size of the house and your standard of living, it should be able to estimate the amount to be guaranteed.
A particular category of property should hold your attention: valuable goods. This may be for example antique furniture or jewelry. The value of these assets involves criteria that are too specialized for an insurer to consider correctly. It is better in this case to involve specialists.
Finally, it is necessary to be wary of the amount ranges, because it is possible to find oneself very quickly in a category superior to that which corresponds really to the value of the goods. Typically, if your property is estimated at 22 000 Dollars, you can find yourself in the category 20 000 – 40 000 Dollars and pay the same rate as a subscriber whose property is estimated at 39 000 Dollars. To watch so.
It should be noted that having home insurance greatly facilitates the sale of real estate because it is transferred to the buyer. Think about this element when you estimate your property for sale, especially if you go through an online professional type Paradissimmo, because it would be a shame not to take advantage of the attractive aspect of such a sales argument (this is only valid if your insurance has been negotiated, of course).
Criterion 2: Amount of the deductible
The deductible is the sum that an insured must pay during his compensation, following a disaster. Every home insurance policy clearly states how the deductible is calculated. There are two types of deductibles: relative deductible and absolute deductible.
There are several ways to calculate the deductible:
- It can be a fixed amount
- It can be a percentage of the amount to be compensated
- It can be calculated taking into account both methods
The relative franchise, or simple franchise, guarantees full compensation: as soon as the amount is exceeded, the full amount of the loss will be refunded.
If it is not stated in the contract that the deductible is relative, it is by default absolute. Compensation takes place when the amount of the loss exceeds that of the deductible, however, and unlike the relative deductible, the amount refunded will be the difference between that of the loss and that of the deductible.
Criterion 3: The method of compensation
If the insurer places you in a price range that is at a disadvantage relative to the value of your home, and you cannot get a premium reduction, you can negotiate the method of compensation that will be applied to your home. Your contract.
For example, you may want to use the “re-equip new” mode rather than the “re-equipment with use value”. The coefficient of obsolescence will not be applied when calculating the amount to be refunded and you will get a better refund.
Criterion 4: The risks covered
The risks covered are usually as follows:
The fire: contained in all the contracts, it concerns the damage of the fire and the lightning except if these are due to the assured
Water damage: it is traditionally part of the covered risks but does not cover the cost of installing new equipment
Theft: This guarantee takes into account the measures that you have put in place to prevent burglaries, so we must study it carefully.
Storm, hail and snow: this cover has been made mandatory by law and will be activated only if a ministerial decree recognizes the state of natural disaster.
Ice breakage: this guarantee is always included in the contracts
Other: there are indeed other various guarantees that can be included in home insurance contracts (expert fees, relocation, etc.)
It will be necessary to make sure that the totality of the risks of which you want to warn you will be treated in vote contract.
- Criterion 5: the status of the insured
Three scenarios are to consider:
The insured is a tenant: he is obliged to subscribe to a comprehensive insurance, which he must submit proof of validity to the owner every year. The absence of such proof may be grounds for termination of the lease.
The insured is the owner: The law does not provide for an obligation, but having a home insurance is still preferable
The insured is co-owner: In this case, the home insurance is underwritten by the trustee most of the time, the insured must still insure his property that will not be covered.