Real estate insurance is a way to maintain psychological peace of mind. Fire of audio, TV, and video equipment, electrical appliances, overvoltage in the power grid, fire, flooding, failure of engineering systems, natural disasters, and many others are not uncommon. The conclusion of real estate insurance allows you to get professional help and cover the damage. But closely related to real estate insurance is life insurance. This article will delve into that one, which has some obvious patterns and some not-so-obvious ones.
How Real Estate Insurance Works
Real estate insurance is necessary to protect yourself from accidents and emergencies. Serious damage can be caused by fire, burglary, faulty plumbing, or negligent neighbors. As a result, you risk not only serious damage but also the loss of your property and home. In these cases, insurance will help to compensate for all or part of the damage. This is why it is necessary to conclude a contract with an insurance company. In the document, it is important to specify what you insure and the sum insured. After the contract is concluded, the policyholder is obliged to pay premiums in a timely manner. Upon occurrence of an insured event, the insurer shall compensate for the damage up to the sum insured.
The following are accepted for insurance:
- Apartments in a residential building, a block (room) in a dormitory (including utility rooms, outdoor areas (balconies, loggias, terraces, etc.), as well as structural elements, finishing elements, permanently installed equipment, engineering communications inside);
- Residential buildings (including finishing elements, structural elements, internal engineering communications), buildings intended for household needs, outbuildings, arbors, greenhouses (except for film ones), sheds, fences, fences, above-ground parts of cellars, wells;
- Household property: household appliances, furniture, etc.
Remember that the insurance does not cover all the property in the apartment or house. You can check the details with the insurer of your choice. In addition, it is possible to insure the civil liability of any user(s) of the apartment (house), household property (responsible person) + legal expenses incurred by him/her (them). In other words, the property user’s liability to neighbors will be insured.
What are the Most Common Reasons to Insure Real Estate?
The most common reasons for real estate insurance are:
- Fire, explosion; ignition of audio, TV, and video equipment, office equipment, electronic equipment, and electrical appliances;
- Fall of objects, collision of vehicles;
- Accidents of engineering systems, fire extinguishing systems, penetration of liquids as a result of firefighting activities;
- Water penetration from neighboring premises;
- Overvoltage in the power grid, resulting in failure of electrical equipment;
- Natural disasters;
- Unlawful acts of third parties;
How to Take Out Insurance for an Apartment
Registration of the insurance is carried out in several stages:
Selecting an Insurer
The association of insurers includes a number of organizations that provide official services. To be sure of the insurer, you should choose one of them. Be sure to pay attention to the duration of the company’s existence in the market, its statistics, ratings, and reviews. It is also worthwhile to familiarize yourself in advance with the tariffs for services and conditions;
Reviewing the Terms and Conditions of the Contract
The information and estimated cost presented on the website may differ from what you will receive as a result. Find out what is considered an insured event in the chosen company, in what situations payment can be denied, how the damage is assessed, what documents are required, etc.;
Property Valuation
This will determine what insurance you can buy and how much the insurer will pay out in the event of an insured event. Remember that the amount cannot be higher than the value of your immovable and movable property;
Conclusion of the Contract
If you are confident in the chosen insurer, and you are satisfied with the terms of cooperation, you can safely proceed to the conclusion of the contract. To do this, prepare all the necessary documents required by the company based on the terms and conditions.
How Life Insurance Protects Homeowners
Owning a home often comes with a significant financial responsibility – namely, the mortgage. If the primary earner of a household passes away unexpectedly, the burden of paying off the mortgage falls on the surviving family members. This can result in financial hardship, forcing the sale of the home just to cover costs.
By taking out a term life insurance policy with a value that matches or exceeds the mortgage, homeowners can ensure that their loved ones are not left with unmanageable debt. In this scenario, the policy pays out upon the policyholder’s death, providing the necessary funds to cover the mortgage balance, and allowing the family to stay in the home.
For example, a family with a $300,000 mortgage might choose a life insurance policy worth $300,000. If the policyholder passes away before the mortgage is fully paid off, the insurance payout will cover the remaining balance, keeping the home in the family.
How to Get Insurance Benefits
When an insured event occurs, the first thing you should do is contact the police to record what happened. These services will provide a document confirming the insured event. The insurer shall be provided with such documents as identity documents, insurance contract (insurance policy), documents confirming the right of ownership, documents allowing to determine the amount of damage to the damaged property, as well as documents confirming the fact of contacting the competent authorities and the fact of the insured event.
In What Cases Insurance Payments May Not Be Received
Reasons for denial of benefits are necessarily stipulated in the contract. These include the following situations:
- The specific event is not considered an insured event because you did not specify it as such when you signed the insurance contract;
- Yourself is the cause of the event. For example, there was a fire because you left the iron on and left the house;
- Failure to comply with the terms of the contract: failure to make timely payments, reporting to the service late, and other reasons.
Conclusion
Life insurance is not just about protecting individuals but also about preserving the financial security tied to real estate investments. By integrating life insurance into your real estate strategy, you are safeguarding both your assets and the future of those who depend on you. With careful planning, life insurance becomes a powerful tool to preserve wealth, secure properties, and provide peace of mind.