People who are lucky enough to take possession of country houses, cottages, or who simply live in the village, having private real estate often think about insurance of their property. This article will be useful for everyone who already owns private houses, or those who are going to become them.
We will try to answer the following questions:
- Private Home Insurance – Why Do I Need It?
- How to insure your cottage against fire?
- How big can the cost of home insurance be and what does it depend on?
What is the need for home insurance?
Private home, village cottage or cottage insurance is a reasonable investment. It’s good when the house stands and nothing bad happens to it. But there may be all sorts of cases that will make you wonder, why didn’t I take out insurance before?
Any private building is much more vulnerable to natural phenomena than an apartment. Also, such housing can attract various villains who are just waiting for the moment to replenish their pockets at your expense.
The most in need of insurance are country houses. Their owners come to the site only in the warm season. And usually such an arrival does not last too long. Therefore, the feasibility is obvious.
The owners of large cottages also often torment themselves with thoughts on how best to protect their home. They install different security systems, put the coolest locks. But, I want to tell you, if a thief wants to get into the building, he will do it. A more reasonable decision would be to purchase insurance.
Now we are talking about third parties, but besides them there are a whole bunch of factors that can harm our home: fires, showers, hail, floods, falling trees, thawed snow and this is not the whole list.
How many times have you heard on television that a house was burned down or robbed? Many times, private sectors suffered from trees that fell on the roof of a house after a terrible hurricane. It also happened that only walls remained from the building, and he suffered from arson.
There are many cases when people threw out huge amounts of money to restore their housing, but these expenses could have been avoided if insurance had been issued.
The cost of the insurance policy is negligible compared to the possible costs of recovery. But you can not puzzle over where to look for money, as you will be sure that your problems will be solved thanks to insurance.
Home owners have the right to enter into an insurance contract:
- to the whole house;
- on supporting structures:
- on the front side of the building;
- to the inside of the house;
- for wiring, plumbing;
- on the equipment located in the house;
- for valuables stored in the house.
House insurance is also recommended for those who have it located in areas of flooding. Often in the news they say how spring floods could harm large buildings.
Insurance of a wooden house will not be superfluous. Such buildings can quickly catch fire, both from the influence of natural factors on it, and thanks to the efforts of third parties. Just remember that for insurers there is a big difference between the terms arson and fire.
The Russian people do not trust insurance companies too much. Only a small percentage applies for insurance on their property. Western countries take this more seriously, and there almost every second home has insurance.
People just do not yet understand that it is financially profitable, competent and far-sighted to buy an insurance policy, the later to spend a fortune on rebuilding housing.
Factors affecting the cost of insurance
Home insurance is a voluntary procedure. No one is forcing his signature on an insurance contract. A person has the right to make his own choice, to insure or not to insure, if to insure, what exactly. The owners themselves choose an insurance agency and type of policy.
The cost of insurance will be different, and it depends on several circumstances, which we will now consider in more detail.
1) The number of risks selected by the client
When applying for an insurance policy, the policyholder has the right to choose the number of risks. According to the standard scheme, the greater the number of risks, the greater will be the cost of insurance. But when choosing risks, you need to think carefully about what is more relevant in your specific situation.
Does it make sense to indicate one of the threats, a flood, if the building is located on the territory within a radius of 100 kilometers of which there is not a single reservoir? Likewise, it is foolish to include the probability of an earthquake in the contract if the house is built on a seismically good place where there were no such disasters for more than a millennium.
The main risks that customers most often choose as an insured event are the following:natural disasters;fires;floods;accidents that occurred with plumbing utilities;falling trees;gas pipeline explosions;lightning strikes;criminal atrocities.
This is a minimal list. If desired, the client can include in the contract any risk that occurs to him. That’s only from the number of these threats, the cost of insurance of private homes will increase.
2) Special properties in the operation of the house
A great influence on the cost of the insurance policy is how long the owners live in the house. If this is a village in which owners appear only in the summer, the price will be higher. Also, the cost will increase if the village uses stove heating in a small building, as it carries the risk of fire.
Rates increase if the mansion lacks a drainage system. Of considerable importance for price increases is the deterioration of utilities, such as gas pipelines, water pipes, electrical wiring. If all this changed about fifty years ago, then the cost will increase.
3) The presence in the house of protective systems or other structures that can secure the building
Rates for insurance can not only increase. If the owners care about the well-being of their own home, they want to protect it in every way, they set alarms and other security systems, then the insurer reduces the cost.
When a fire starts and the fire system quickly extinguishes the fire, for the insurer it is much better than paying damages.
You can also save on insurance if the materials from which the house is built are made up of modern fire repellents.
4) The price of building materials
If your house is built of high-quality, expensive building materials, then in case of an insured event, you would like to receive the appropriate insurance amount. For this reason, the cost of the insurance policy will also be higher.
Tariffs are greatly affected by what the building is built of. So, to insure a wooden house will cost more, because it is more fire hazard than a brick cottage.
5) Period of use of the building
The older the building, the less enthusiastic insurers undertake to insure it. Some companies have a prerequisite – do not insure property that is more than fifty years old.
The age of private home insurance also depends on age.
What to be guided by and what to do when deciding to insure private real estate – a detailed instruction.
Insurance of a country house, cottage, or city cottage is not a complicated process. The main thing that is necessary is to delve into the features of this procedure in advance.
You need to understand that any insurance organization, even with the most impeccable reputation, is not a charity. Each insurer, concluding a contract with a client, pursues its own benefits. For this reason, you need to know your rights and clearly defend your interests.
Our recommendations and instructions will help you with this.
Action 1. Carefully select an insurance agency.
Obviously, the best company for cooperation will be a proven company with many years of experience and positive feedback. You may come across unfamiliar organizations with a more attractive insurance cost. But it’s better to overpay once, than later regret your choice.
A company with a large scale, with several hundred or dozens of branches throughout the country, is more suitable for choice than one that is known only to a narrow circle of personalities.
A few more criteria for choosing a future insurance agent:
experience and competence – do not forget that the company must be experienced and the older it is, the greater the likelihood that in practice it will turn out to be a serious partner;
the total amount of damages paid on insurance policies – the more payments were made, the more insurer will be more reliable;
the organization’s reputation – you don’t need to talk about this, probably few people will agree to go to the insurer, which they say that he did not pay a single damage;
A large list of insurance programs offered – the larger it is, the greater the likelihood of choosing the insurance that suits your particular case;
reviews – it’s best if your friends advise you on a good company, than you read the recommendations on the Internet.
It is important for a serious insurance company to have their own website. A self-respecting company must have such a detail. Here the client will be able to study in more detail all the details of interest.
Step 2. Choose an insurance package.
We have already touched on this topic a bit. When choosing a package, do not immediately run and scream, I want a “complete package”. Why should you include all kinds of risks in the contract? If you are the owner of a small village house, visited only in the summer, then an inexpensive program with the inclusion of fire and flooding threats will be enough.
House insurance, in which there are all sorts of values (modern equipment, antiques, valuable jewelry) may include in the contract a clause with the risk of illegal acts.
Step 3. We call the appraiser from the insurance company, which must determine the condition of the building.
You can sign an insurance contract and omit this clause .. It is not necessary to call an organization representative. Maybe the documents presented for the property and the fota made at home are enough.
In this case, the services of the insurer are valued at a lower cost. And upon the occurrence of an insured event, the amount of damage paid will also be lower than is necessary for the real restoration of the home.
We recommend calling an appraiser. He can give practical advice when choosing an insurance program and can even make some kind of bonus when examining your home. But be prepared to overpay for an insurance policy.
Step 4. We begin the collection of necessary documents.
There are many companies in the insurance industry, each of them has its own approach to the “paper” procedure, but usually they all have a standard documentary set:
- customer passport;
- documents for the insurance object and land;
- construction plan and technical passport.
Insurers have no less interest in quickly completing all documentation than clients. Therefore, they try not to shoulder excess paperwork on the shoulders of private house owners.
Action 5. Signing the contract.
When you move on to the most important thing – signing an agreement, take your time to sign your autograph.
Reread the document again and make sure that you understand all the points. Review if there are any sections that make you suspicious. Remember, you can always ask and ask another question.
Only after you have fully familiarized yourself with all the points and you do not have any claims to them, sign it.
Where to apply to insure a private home? Overview of the top five real estate insurance companies
How not to make a mistake when choosing an insurance agent for your real estate when there are hundreds of similar companies? So that you can make the right choice, we have analyzed the insurance market and prepared a review for you about the top five companies in our country.
A company with seventy years of experience in the insurance industry. It has a large number of representative offices, both in Russia and in the territories of other republics. In the list of services offered, the client will surely find an insurance package for himself and at a suitable cost.
The main real estate packages are:
- “Platinum” – personal insurance of expensive buildings;
- “Express” – suitable for customers counting on a more budget option of insurance;
- “Freedom” – one of the conditions of this type of insurance is the price of the insured object, which should not exceed 6 million rubles.
A mature company with over twenty years of experience working with clients. It has more than three hundred branches. From year to year he receives the highest mark from the independent rating agency Expert.
In this company, you can insure almost everything. Insurance of a country house, insurance of an unfinished house, mansion, summer house and more. If you wish, you can insure all the buildings located on your site. The Estate Complex insurance package includes insurance on even a fertile piece of land.
The company has the status of a joint stock company. Started its activity in 1993. The main positive qualities of the company are highly qualified employees, financial stability, capturing all areas of insurance, always fulfilling its obligations to customers.
Those who contact this organization can use the Phoenix House program. It involves various risks and allows you to insure individual structures, facades, interior elements, communications.
The company offers customers a quick solution to their problems. The minimum process of paperwork, the possibility of signing a contract without a preliminary assessment of property by an expert. The agency works in collaboration with Ingosstrakh and RESO-Garantia.
In the contract you can specify the main risks, home insurance against fire, floods, falling trees and much more. The agency offers a large number of programs at an affordable cost.
This company is the most mature and experienced. It occupies a leading position in the ratings of “Expert”. Offers various insurance products. Works for customer convenience.
You can take out insurance in this company directly on their website by choosing a suitable insurance program.
A finished document can be obtained both at the agency’s office and at home, if you ask for delivery.
6 myths in real estate insurance
Private home insurance is surrounded by a number of different prejudices from poorly educated or legally uninhibited people. It’s time to find out the truth, not to torment yourself with conjectures.
Myth 1. Insurance of private buildings is more expensive, insurance of an apartment
There are two types of insurance: title insurance and property insurance, and it is precisely between these two concepts that confusion occurs. If you take out title insurance, then it is really expensive. This is because the market price of the house is taken into account.
As for the insurance of a country house, it falls under the term property insurance. In this case, the contract will focus not on the future amount of money spent on restoration work, but on the selling price of the house. Therefore, tariffs for insurance services will be more reasonable and convenient for the client.
Myth 2. The insurance policy gives a guarantee for all cases of robbery at home.
That’s right if you include the robbery item in the risks. If there is no such item, insurance will not cover your losses.
Myth 3. After insurance, you can not be afraid of any natural disasters.
All this too, really. But only if all natural disasters were included in the contract.
Myth 4. It is allowed to insure only external buildings, but not land.
Not. Some companies provide insurance for fertile land. You need to look for a suitable company.
Myth 5. When you have insurance in your hands, you don’t have to worry about fire safety rules.
Home insurance against fire does not give you one hundred percent guarantee. After any fire, an assessment is made of why it occurred. If the cause is a cigarette butt that was thrown out of bed onto the floor, you can forget about paying damages.
Myth 6. Why insure a home if you yourself can avoid all the dangers
It is up to you to decide whether or not to take out insurance. Everyone can try to prevent accidents related to their home. But foreseeing everything is almost impossible.
You have learned more about insurance. We hope this information helps you make the right choice.