Specifically on property, insurance provides protection against disasters, however, insurance, regardless of type, is underappreciated until it is needed. Therefore, the decision to have property insurance, health insurance, car insurance, maternity insurance, etc., depends on each person’s risk tolerance.
WHAT DOES HE PROTECT ME FROM? SURE?
There are different policies, however, the most important coverages are to protect:
- The internal and/or external structure of the property.
- Personal items within the property.
- Damage to third parties (accidents within the property).
- Damage to other properties (in the case of condominiums).
WHAT INSURANCE DO I NEED?
There are many varieties and not all homeowners need or look for the same type of coverage. Therefore, it is advisable to specify the policy coverage, its restrictions, and exclusions to cover any possible risks.
The most important elements to take into account when making the decision on the type of coverage you need are:
Uso de la Propiedad.
- Investment, rental, vacation or primary use home.
- Civil liability to be insured.
- Protect yourself against legal action and medical expenses.
- Protección contra daños de otras propiedades.
- Personal objects 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 the government and lenders).
- Kind of property.
- House and townhouse: Structural protection, flood, accident 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 several properties, you have the option of using “umbrella” insurance that allows you to dilute the cost of the policy.
SHAPES TO REDUCE THE COST OF THE POLICY
1. Increase your deductible. As a homeowner you can save money by increasing your insurance deductible, which is the amount paid before the insurer covers 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, as long as you have the money to pay the deductible when necessary.
2. Install an effective alarm system. Insurance companies give discounts for having an alarm system.
3. Try to pay minor claims yourself, since frequent claims are a determining factor for insurance companies to set a higher value for the premium.
Do not forget to ask for the advice of an insurance broker when purchasing your property and if you have already purchased it, it is never too late to evaluate the conditions, terms and coverage of your policy.
