Do I need Insurance?
Specifically on property, insurance provides protection against disasters, however, insurance, regardless of class, is underappreciated until it is needed. Therefore, the decision to have property insurance, health insurance, car, maternity insurance, etc., depends on the risk tolerance of each person.
WHAT DOES INSURANCE PROTECT ME FROM?
There are different policies, however, the most important coverages are to protect:
- The internal and/or external structure of the property
- Personal items inside the property
- Damages to third parties (accidents within the property)
- Damage to other properties (in case of condominiums)
WHAT INSURANCE DO I NEED?
There are many varieties and not all homeowners need or seek the same type of cover. Therefore, it is convenient to specify the coverage of the policy, its restrictions, exclusions to cover its eventual risks.
The most important elements to take into account to make the decision of the type of coverage you need are:
- Use of Property:
- Investment, rental, vacation or home for primary use.
- Civil liability to insure.
- Protect yourself against legal action and medical expenses
- Protection against damage from other properties.
- Personal belongings and the internal part of the property (floor, walls, ceilings, electrical installations, appliances or air conditioning)
- Location
- If you are in a hurricane-prone area (usually an optional policy)
- If you are in a flood zone (required by government and lenders)
- Property type
- House and townhouse: Structural protection, flood, casualty and hurricanes
- Condominium: Buildings usually have a general policy (master policy) that covers the structure and common areas against flooding and accidents
- Number of properties
- If you own multiple properties, you have the option of using “umbrella” insurance that dilutes the cost of the policy
WAYS TO REDUCE THE COST OF PHOLIZA
- Increase your deductible. As a homeowner, you can save money by increasing your insurance deductible, which is the amount paid before the insurer will cover a claim. Naturally this is one of the most common ways to keep the cost of insurance down. But remember that a high deductible is a great way to save, while still having the money to pay the deductible when needed.
2. Install an effective alarm system. Insurance companies give discounts for having an alarm system.
3. Try to pay for small claims yourself, since frequent claims are a determinant for insurance companies to set a higher premium value.
Do not forget to ask for the advice of an insurance broker at the time of acquiring your property and if you have already acquired it, it is never too late to evaluate the conditions, terms and coverage of your policy.