Owners are increasingly thinking about how to protect their homes from various damages. There are many cases when after the summer holidays we go home, find a small leak, irreversibly damaged the parquet, or ruined the ceiling of the neighbors below us.
Insurance will not save you from such cases, but at least it can reimburse you for them. We will not lie to you - it often turns out that the insurance policy does not cover exactly this event, and for some reason, even if it is included in the contract, payment is refused.
From conversations and observations over the years, I can say that there are companies where receiving benefits and all the processes before that are easy and fast - and these are usually companies where insurance is higher than average. Buying the cheapest option is never a good idea in insurance, and the reassurance that the property has a policy due to a mortgage loan is unjustified. Mortgage policies are standard, with less coverage, which means fewer cases of compensation payment.
We have tried in some tips to gather the most important things to pay attention to when taking out insurance. Our list is certainly not complete and everyone will be able to add something they have encountered. We hope you will share with us on our editorial mail myfinances@capital.bg.
1. Never just compare prices. The premium, or the price you pay, depends on the types of coverage, the sum insured, the valuation of the property, its condition, whether an individual valuation is made or a ready-made package is purchased. If you can not navigate yourself, you can use an insurance broker - their fees are paid by companies and concluding a policy through them does not make it more expensive.
2. It is good to ask what is the attitude of the company when an event occurs - how fast it pays, how it inspects, whether it uses "loopholes" in the contracts to refuse payment ... It is possible to initially refuse, and only after insistence from the client to agree to pay. This can not be understood otherwise than by conversations with acquaintances, brokers, agents.
3. Property insurance is of two main types - package, with basic coverage (first risk) and standard or at actual value. Package insurance is the more affordable option, explains Gergana Ivanova, manager of the broker Finseils. With it, the packages with risks that are covered are prepared by the insurer and the client chooses between them.
For real estate, each package must include the main risks of fire and natural disasters, and in addition, you can choose coverage such as earthquake, vandalism, malicious acts of third parties and terrorism for some of the companies, "added Ivanova. they are usually more expensive, but they are prepared according to the customer's requirements and not according to pre-set modules.
Package policies do not require a preliminary inventory and are usually for small amounts, although according to Ivanova, the market now offers package policies with significant limits such as up to BGN 150,000 for real estate and up to BGN 35,000. for movable. "Standard property insurance covers the same risks as package insurance, but the difference is that the limit of liability is equal to the actual value of the insured property," she added.
4. Deductibility is a clause in the contract that must be given special attention. It means that in certain cases the customer covers the damages himself and pays a lower price in return. The deductible can be as a percentage of all damages, or it can be only for those up to a certain value. Generali Insurance explained that the most frequently asked questions by customers are: "What risks does the insurance cover, does the earthquake risk include? Is there a deductible for the customer and if so, what is the deductible rate?".
Another thing that customers are interested in is whether the sum insured corresponds to the actual value of the property, commented Ivaylo Ivanov, Director of Product Development at the company. Generali's advice is to always read the general terms and conditions of the contract. The latter applies in fact to all contracts for financial products, where it is usual for the clauses to refer to general terms and conditions valid for each client. It must also describe whether the compensation will be paid at the price at which to buy similar to the damaged property or one for the restoration, ie. its repair. Generali is one of the companies that do not offer self-participation in "Home Property", but there are not many such insurers in Bulgaria. You decide if you want such a clause.
5. An earthquake is a separate risk that is signed and paid for separately. If you have a Fire and Natural Disasters policy, an earthquake is not a natural disaster. In addition, Gergana Ivanova pointed out that very often property such as doors, windows, bathtub, faience, toilet, can be covered by a special clause, for which you must explicitly request to be added to the main contract. She advises to ask the insurer if there is a standard for the sum insured per square meter of built-up area - very useful if you do not insure a new home.
6. Robbery and burglary are also covered outside the main "Fire and natural disasters". Ivanova said that very often property owners do not want such a clause in order not to give information about what items they have at home and are afraid of abusing it. The broker's advice is to ask the insurer if he can cover higher limits on these risks, without making an inventory, and information should be given only in case of damage.
7. "Civil liability" is also for the property, not only for the car. This is an additional cover that covers damage caused by your negligence on someone else's property - for example, if you flood your neighbor or due to a short circuit in your home his house caught fire. According to Generali, the increase above the basic premium for this risk is between BGN 10 and 40. According to Finseils' calculations, the increase is between 0.11 and 0.15% of the sum insured, with the exception of a tariff of 0.6%. For example, in the amount of BGN 5,000 and 0.15% tariff "Civil Liability" will cost BGN 7.50.
8. A mortgage loan requires mandatory insurance, but this does not mean that you have to stay with only the mandatory one. Ask if it is possible to include additional clauses to pay separately. In such cases, it is specifically stated that in case of an event, the bank receives compensation up to the amount of the loan, and the rest will be for its recipient, explained Gergana Ivanova. Generali Insurance reports that more and more often insurance policies are taken out for coverage that is above the obligatory ones on the loan. According to Ivaylo Ivanov of the company, the Home Property policy is not a luxury, but provides security "at an extremely affordable price" and may be a mistake for insurers that people are still not familiar enough with.
Source: capital.bg