Home insurance is one of the things often overlooked or deemed unnecessary in a household. Some do not see the urgency in getting one while others focus their finances on more pressing matters, like bills, food, and education. You can click here to know that In Spain, there are currently about six million uninsured homes.
What is Home Insurance?
Let’s first define the term home insurance. In simple words, home insurance is a service you buy from an insurance company to have their assistance, most preferably monetary assistance, should anything damaging happen to your properties. It is not, however, limited to that. It can also be used should an accident happen to a person within your property.
Why Do We Need Home Insurance?
Home insurance is not mandatory. It is, however, wise to have one. Some people think that there is no need to have one because accidents seldom happen, but in case they do happen, getting back on your feet can be challenging.
Now, while for some, home insurance is important because of what might happen in the future, which is mainly the purpose of it, others may have a different reason for getting one. People applying for a mortgage need to have their properties insured; insurance is most often one of the requirements to have your mortgage approved.
What Events Would Require Home Insurance?
There are a number of things that can happen to a house that would need the help of an insurance company. Fire is most often the cause of an enormous setback in your household finances. A gas explosion is another thing that can bring your property down.
As for smaller accidents that can happen to your house, breaking, entering, theft, and water damages are on the list.
Types of Home Insurance Contracts
Right now, there are two insurance contracts available: multi-risk insurance and comprehensive insurance.
This is the more common type of insurance contract. In this contract, the insurance company lists down specific events and situations that they can and will cover. Anything that is not on the list will not be covered by them.
This type of insurance contract is significantly better if you look at the homeowner/s benefits. It’s basically multi-risk insurance and more. Other incidents not on the list may still be covered. However, it is, of course, more expensive than multi-risk insurance. This type of insurance can range from 200 to 300 euro annually.
What Insurance Companies Consider
There are things that insurance companies consider before getting on a contract with a homeowner. You might want to check these out before applying for home insurance to avoid problems and hassle.
- Which floor the apartment is on
- The location
- The crime rate
- The accident rate
- Apartment’s surface area
- Date of construction
- Date of the latest renovation
Note that if the house is very much outdated, there is a chance that the insurance company won’t be much of a help. If that’s not the case and you are positive about getting that home insurance, study what the insurance company offers well to ensure a smooth process should you need their assistance in the future.