Property insurance is now a necessity, not a luxury! Some neighbors will flood with water, someone will get lightning in the house, someone will be flooded as a result of natural disasters, and the list can go on for many points.
In order to at least somehow offset your expenses by insurance companies, a product such as property insurance was offered.
What can be insured?
You can insure :
- Buildings, constructions, premises, including houses and apartments;
- All engineering equipment located inside the facility (heating, water supply, sewage, etc.);
- Equipment and other movable property;
- Home property;
- Interior decoration of the premises (walls, ceilings, window blocks);
- Civil liability for harm to third parties.
You can insure property against the following risks :
- Household gas explosion;
- Natural disasters;
- Bay of neighbors / water damage from heating systems, water supply, sewage;
- Illegal actions of third parties;
- Damage from the fall of trees, poles, aircraft, hitting vehicles;
- Acts of terrorism.
Property insurers are legal entities of all legal forms and citizenship.
According to insurance rules, property can be insured, either in whole or in part, for the entire value of the property or the value of a certain share.
When concluding property insurance contracts, the insured amount at the time of its conclusion cannot exceed the actual value of the property. The actual value of the property is its carrying amount. This characteristic is used only for insurers of organizations. For insured individuals, the value of the property is determined by the insured cannot be higher than that set for similar property.
When obtaining a loan at a bank, an assessment report is taken by an independent expert appraiser for determining the true value of property during insurance – this is for legal entities.
If you buy equipment on credit, then the value reflected in the equipment purchase and sale agreement is taken for the actual value of the property when insuring.
The insured amount specified in the property insurance contract can only be challenged if the insurer proves that the policyholder deliberately misled him about the value of the property. If the value of the property is less than the sum insured, then the property insurance contract will be invalid in the part exceeding the value of the property.
If you insured the property not for the full amount, then the compensation will be made according to the system of proportional compensation or according to the first risk system.
The system of proportional compensation is when the insured is indemnified in proportion to the paid part of the insurance amount. For example, if the insured amount under a property insurance contract is 1,000,000 rubles, and the insurance premium is 10,000 rubles, but you paid only 6,000 rubles of insurance premium, i.e. 60%, then, accordingly, upon the occurrence of an insured event you will be paid not 1,000,000 rubles of the insured amount, but 600,000 rubles, i.e. 60%
According to the first risk system, damage is compensated only in the amount of the insurance amount specified in the property insurance contract. The amount of damage in excess of insurance i.e. the difference between the amount of the insured amount and the actual damage is not compensated.
When concluding a property insurance contract, the insurance company in almost 99% of cases tries to provide for a deductible – an unpaid part of the damage. The franchise is divided into conditional and unconditional.
If the amount of damage is less than the deductible, then it is not paid to the policyholder. If the damage exceeds the size of the deductible, then its value is included in the insurance amount payable – this is a conditional deductible.
If there is an unconditional deductible in the property insurance contract, its size will not be paid to you regardless of the amount of damage. In the contract, it is expressed both in absolute value and as a percentage of the sum insured.
Cost of property insurance policy
The cost of the policy is calculated based on the sum insured for which property insurance is made.
And if we take as a basis the cost of an apartment of 1,000,000 rubles, then the cost of the policy will start at 6,000 rubles. Ask why from 6,000 rubles, the fact is that the final cost of the policy will be determined based on the list of property that you insure. In our calculation, we used insurance of finishes and engineering equipment.
When the following events occur, you will not receive a refund :
- Nuclear explosion and (or) radioactive infection;
- Damage caused by riots, strikes, civil wars or hostilities;
- If the property was seized from you by order of the executive authorities;
- If your object has become unusable as a result of a natural change in properties (rust, corrosion, etc.);
- If the insurance object becomes unusable as a result of physical deterioration, design or construction defects, etc.);
- Impact on the insurance object with open fire or other thermal effects, as well as the location of insurance objects near open fire;
- In case of flooding of the insured object or its failure in whole or in part as a result of precipitation entering the premises through the seams, holes in the structure formed as a result of deliberate impacts, decay of the object or defects allowed during construction;
- Wiring failure, if this is not included in insurance risks;
- If, as a result of negligence, the object collapsed;
- The manufacture, use and storage of explosives. Conducting experiments (chemical and physical) in the insured room;
- The output of their system of household, computer equipment and electrical appliances due to natural disasters, short circuits in the network or poor-quality power supply.
The above exceptions to the property insurance contract are standard for all insurance companies, even if they do not declare them.