Inside our home … “we are our real selves, we make mistakes, we say sorry, we give second chances, we have fun, we hug, we forgive, we make noise, we are patient, we love”. In these 4 walls we house our closest people, our valuables, our family. Under the protection of the roof of our house we make the most important memories of our lives. We raise our children, we live our loves, we take care of our friends. Our home is undoubtedly our most valuable material asset.
Of course we want to protect it!
How can we protect it and what is at stake?
The risk of our house being destroyed by fire is so great during the summer months, that unfortunately every year there are forest fires, but all year round from an accident such as a fire from a fireplace or a fire from the kitchen or a fire from a short circuit, overload, hypertension, explosion, lightning and smoke damage.
The cost of this coverage is very economical and is the first thing we “buy” to start a multi-property insurance. It is also the basic coverage that the bank requires if we have a mortgage on our house.
Tip: You should ideally insure your home at 95% -100% of its value. If you make a wrong calculation in the construction value and insure for example 60% of the total value, then in case of damage you will be compensated with the same percentage as you will be considered by the insurance co-insurers for the rest, ie 40%.
Flood protection and severe weather phenomenon.
It is well known that large-scale fire disasters will inevitably lead to flood problems which have a devastating effect on people’s property. Speaking of our house, however, apart from the fact that the water entering the basements and ground floors of the houses causes damages of many euros at the same time, they make our house uninhabitable for a long time. These are coverages that are provided within the very fire insurance policies of insurance companies and are certainly a very small part of the annual premium. We must not forget to ask for the coverage of natural phenomena and the coverage of temporary accommodation expenses in case the house is uninhabitable.
Given that we live in Greece, the most seismic country in Europe, we must take seriously the insurance coverage of the earthquake. There have been periodic earthquakes that have completely destroyed many houses. And for this reason we see the banks also require coverage from this natural disaster in the mortgage house in case they have given a loan.
This coverage is relatively expensive but ultimately much cheaper than many pointless expenses we all make over time without realizing it. To put it another way, prioritize your expenses and waste your money on the most important. Earthquake insurance coverage of your property is very clear in them.
Tip: in order to be able to get this coverage, your house must be built with an anti-seismic permit, ie after 1960-1965, because otherwise the insurance company will refuse the coverage.
Coverages for the content of your home.
In addition to the coverage related to the construction of the house, you can have insurance coverage only or for the content of your home. There are too many coverages related to it, such as content theft, short circuit damage, broken pipes, broken windows, etc.
Tip: The content we have in a house is calculated with min 300 € / sqm. Of course there are cases where this number is much higher. In all cases we must properly capture the content capital to be insured to avoid underinsurance.
The cost of insurance is financial regardless of insurance, but when choosing an insurance company it is good to pay attention to the exemptions that exist in insurance packages.
Owner Liability Coverage.
This is one of the reasons you really can’t afford to be uninsured. It could cost tens of thousands of euros or even more in medical expenses if someone is injured on your premises and you are held responsible. Also a damage that can start from your home, for example a fire or a broken pipe, and spread to neighboring properties, then in addition to the money you will need to repair your own home, unfortunately you will also have to disburse for of the neighbor.
Tip: Liability to third parties is purchased with max coverage. Ask what this is and if it is included in the general capital insurance of your property, ask for a capital extension, because if the capital is completely exhausted from damage in your own house, it will not be left for the neighbors ..
Those who have received a mortgage from a bank already know that it is a prerequisite to insure the borrowed capital against the risks of fire, earthquake, and terrorist acts. In the insurance market, insurance packages have been created to meet this very need and are called “borrower coverage”.
Tip: The obligation that exists is to insure the construction for the capital that has been given by the bank and the beneficiary in case of damage for it is the same. This means that you should take extra care of the rest of you as well as the insurance of the contents of your home under the same contract.
Also be aware that your obligation is limited to having mortgage insurance coverage. That is, you can be insured with any insurance company you wish and with any insurance agent as well. So it would be good to look in the market to come up with the insurance product that suits you best!
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