Insurance

Home Insurance

7 common mistakes to avoid when purchasing home insurance

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One of the most important decisions in our life is to choose the home in which we are going to live for a time - or our whole life -.

One of the most important decisions in our life is to choose the home in which we are going to live for a time – or our whole life – from that moment on it becomes the most precious asset. In it are our hopes and efforts, and that is why we must protect it in the event of an accident. So insuring it becomes a very important issue and many times we do not pay the necessary attention when purchasing home insurance.

Another email with the same problem. This week there are a few subscribers who have raised a similar issue and the origin of everything is in contracting home insurance with deficiencies.

Today we can find very good information on the web on any subject, insurance too. For example, this site, which aims to be a benchmark among consumers. Despite this, when purchasing home insurance, we continue to make the same mistakes, possibly for trying to lower the price of the policy.

I like to keep what I have, what about you?

Well, if you pay a little attention, in this post we are going to review the most common mistakes when purchasing home insurance so that you do not have problems if you suffer an incident in your home.

1. Not reading the particular insurance conditions

Due to lack of time, desire, or because we trust whoever sells us the insurance, we do not read the policy when it arrives. If we have hired it online, we keep the headlines and the price. If it’s the bank, how can we not trust whoever takes care of our money? And if it is the friendly mediator, an “if you already know I have it” is enough.

In fact, you will surely archive it and you will not review it again until you have a mishap and at that moment if it has an error in the wording, you will not be able to do anything if more than 30 days have passed since you hired it.

Falling into this error is easy, so you should read the policy when you have it in your possession. Take a moment to review some very important aspects such as the description of the insured risk, the capital contracted, or that coverage where there is a greater probability of having a claim.

With this, you will avoid anger and subsequent problems, in addition, you have a month from your purchasing for the company to correct those aspects that do not fit your insurance proposal.

2. Value the continent at purchase value

It is common, especially when the insurance is associated with a mortgage, to insure the home for the amount of the loan. The price you pay includes the building and the plot or the proportional part if it is flat. Insuring the value of the land is a mistake that is going to cost you money. The insurer, in the event of a claim, will compensate you for the reconstruction of the house on the same site.

Insuring above what the insured property is worth is throwing away money.

But the reverse circumstance also occurs, and it is common to insure the continent for a lower value to save on the price. By doing so, you may incur underinsurance and in the event of a claim, the compensation will be reduced in the same proportion as the uninsured capital.

Most insurers try to correct these errors by using guidance scales, based on the square footage of the home, the quality of construction, and the construction site.

Many companies already verify, when purchasing home insurance, the meters of the house through an online consultation with the Cadastre.

If you live in a residential building, check your community insurance to see its coverages.

3. Assess the assets in the home by eye

Have you ever stopped to think about how much everything you have at home is worth? Well, when purchasing home insurance you have to establish the capital that you want to insure for content.

A few years ago, to test a program that I had created to carry out inventories, I began to do my math. To my surprise, the library, the vinyl and CDs, and four paintings amounted to more than 1/3 of the capital that I had contracted in the insurance. I needed to include furniture, appliances and electronics, trousseau, clothing, kitchenware, jewelry, etc.

With this, I want to tell you that before subscribing to the insurance, you are interested in spending a good time evaluating everything you have at home. Take an inventory, breaking down those objects that have a special value such as works of art or jewelry. That way you can see if these objects exceed the limits imposed by the insurer in the contract.

An incorrect valuation of the goods can cause you to fall, as happens with the continent, in over insurance (you pay more) or in underinsurance (you charge less)

If you don’t know how to determine the value of your assets, enlist the help of a professional, an independent and objective expert.

4. Think that with purchasing a home insurance everything that happens is covered

Based on what was said in the first mistake, not knowing what the insurance covers often makes us think that everything that happens at home is covered. At the outset, I tell you no, and in the best case – with a household risk – neither.

Insurers for competition and marketing reasons have been including a multitude of “filler” covers. This may make us think that everything is covered, but they continue to exclude everything that smells like home maintenance.

You have to be very clear about what the insurance covers and whatnot, you will avoid later inconveniences or say that of…

Why do I pay for insurance if it doesn’t cover anything? Insurers are very ready to collect, but when it’s time to pay…!

5. That doesn’t happen to me

This is one of the most common mistakes.

There are many incidents where we think that it is impossible to happen at our house. According to the reports, a fire breaks out in a home every three minutes thirty-seven seconds. Every fourteen there is a leak and every 25 a glass breaks. You know, Murphy’s Law is wicked and can be enforced anytime, anywhere.

Do not underestimate what can happen in your home and less for saving four euros by eliminating coverage or hiding certain assets from the insurer. If you have doubts, I recommend that you read What guarantees do I need in my home insurance

6. Forgetting to review insurance periodically

If we do well with home insurance, we forget we have it. We only worry when we have an incident and then it is too late.

In the same way that your life changes, so does your house. You adapt it to your needs, acquiring new elements, or modifying existing ones. It will also depend on the economic period, whether the house is worth more or less. All these factors advise reviewing the insurance conditions every two or three years.

The incorporation of prevention or security measures, the use of the Internet of Things (IoT), can lead to a reduction in the price of insurance. Any variation in this regard or if they aggravate the risk, you should notify the insurer as soon as possible.

7. Compare the price of your insurance with that of the neighbor

This is possibly the most pernicious mistake of all. We tend to compare and equal ourselves and in insurance, the same thing happens.

Why is my insurance more expensive than the neighbor’s, when the houses are the same?

Possibly you are overlooking the reforms you have made, that the furniture is not from Ikea, or that the neighbor is more fearful and has installed bars and an alarm.

There are many factors that determine the price when purchasing home insurance. Any difference in risk, capital, or coverage means that you pay a different price. Also, think that you contract within the framework of the free market, so each insurer sets the price according to its economic sufficiency.

conclusion

These are the most common mistakes when purchasing home insurance. To avoid them, you should spend a little time on it, analyze what the market offers you before deciding.

An insurance policy is an adhesion contract. When you subscribe you are accepting the conditions imposed by the insurer. They establish what are the coverage, limits, and exclusions that will govern the contract. If the nature of the property or the fact that has caused the damage does not match the conditions of the policy, the incident will not be covered.

So when purchasing home insurance, you have to be clear that the policy must be expertly tailored by … an expert. This rules out doing it through comparators, telemarketers, brothers-in-law who make insurance to get a few euros, consultancies, or banks.

And you, do you want to take the risk?
Do you have an expert to advise you not to make these mistakes?

Have you been updating your insurance for a while? These are my tips to get it right

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updating your insurance

I have already talked in this blog that the best way to save and be protected is to have your insurance up to date.

As important as saving on the price is having the insurance well done. Having the coverage you need to safeguard your wealth and that of your family should be your priority.

I am convinced that you do not have time to sit down and review your insurance contracts. Me too, but when it comes to prevention I try to take a while.

For me, October is an important month because a good part of the insurance that I have expires in December. Therefore, before the date arrives, I try to get my insurance up to date and if I can improve what I pay for it much better.

Do you know what you should check in each insurance, in addition to the price?

In order not to waste much time, in this article I will tell you what things I check in each of my policies.

Car insurance

In the family, we have two cars, very similar in type, power, and age. For a few years, both have the same insurance coverage. It is an extended third party that includes fire, theft, and moons. Of course, they also include accident insurance for the driver and travel assistance.

One has turned 10 and the other some more. Both policies enjoy the maximum bonus, so any technical increase in price affects them.

Due to the years of the car, and the real value of each one, it may no longer pay to continue to maintain some coverage. The same age advises reviewing the validity of some other guarantee.

So this year I will update this insurance by checking these two things:

1. The market value of the vehicle.

With this, I will decide if it is worth keeping the theft and fire guarantee. I can save a little more than 60 euros per policy by eliminating this insurance coverage.

2. The older the car, the more risk of breakdowns.

Therefore I will check if the limitations of travel assistance have changed due to the age of the vehicle. I will check if any limitation has come into force on the number of assists per year or the distance from which they will assist me on the road. In this sense, it is common to include a minimum radius of 25 km to receive help or limit it to 3 assistance per insurance annuity.

If the car is a few years old and is still fully comprehensive, you can cancel the coverage, including a franchise or contract only the total loss. With this, you can save up to 60% on the price of insurance.

To have these insurances up to date you do not need to touch any other guarantee. One because it is mandatory and the rest for necessary.

Home insurance

This year the home insurance policy is not included in the “up-to-date insurance” campaign. I had a review last year and the house has not undergone significant changes during this time, neither in the building nor in the content.

The insurance had not been reviewed for 3 years and had done work on the house, change doors and windows, the floor, and expand a room. In short, the value of the house had increased and the square meter had gone from 800 dollars to 925 dollars. In order not to fall into underinsurance on the continent, increase the sum insured by 20,000 dollars.

The insured capital of content had also increased. The difference with the previous inventory meant having underinsurance of 18%, so I had to increase the insurance sum by that proportion.

Do not stop reading this article to know what consequences this situation has. They tell me I have underinsurance. Why does it happen and how can I fix it?

After reviewing the content and container capitals, it was time to see what the limits of the insured capital were for certain coverages, and if they continued to suit my needs.

Once revised, I extended the limits of some guarantee, especially where the repair or replacement costs had been outdated.

Among others, increase the capital at first risk of the breakage of glass, the robbery outside the home, or the location and repair of water faults. Go from basic home assistance and legal protection to premium ones.

Ah! An important fact, I changed the company because the one I had did not suit my needs. If you want to know how I did it, enter here and get this free guide created to help you.

In short, 3.4 dollars more per month on the home insurance receipt.

Health should not be a luxury

If you are not one of the lucky ones who work for a company with high social benefits, health insurance can be a luxury item. To bring the insurance up to date, you must check if the health insurance benefits are sufficient. Advances in prevention, diagnosis, or medical treatment are evolving rapidly.

It is common for some time to pass from when the insurance is purchased until it is used. Therefore by not using it, you have not felt the need to review it. Review it and see if, with the price update, the benefits have also been updated.

It is expensive insurance, but it offers possibilities to adapt it to your economic situation. You can include or increase the copayment, suppress certain benefits, and thus adjust the price of the insurance.

To be honest, it is a modality that I do not currently include in my insurance portfolio.

If you are looking for savings with your insurance campaign up to date and you have thought about changing health insurers, first I recommend reading: 5 Things to keep in mind before canceling health insurance.

Life insurance, an eternal guarantee

The objective of taking out life insurance is to guarantee financial stability to your beneficiaries if you are absent. But to maintain economic stability it is not enough to sign the contract and forget that it is there. You are obliged to review it periodically to adapt the insured capital to your future expectations.

In my case, life insurance has been underwritten for more than 30 years. Since then I have reviewed it 4 times. In the first two, double the insured capital, in the last two only increase it. In the third review, the possibility of having an accident increased considerably, so I decided to include double and triple capital due to death in an accident.

My current insurance plan to date is considering reducing the insured capital or perhaps dividing it between several insurance policies. The risk profile has changed and age causes the price of insurance to rise exponentially every year.

What is the capital that I must take out in life or disability insurance? Do not miss this post if you are thinking of subscribing to an eternal guarantee.

The same formula should be applied to savings insurance or pension plans. Your current investments will depend on whether you can maintain the economic level when retirement arrives.

But if your interest is short-term, you must necessarily check if it is convenient for you to invest to reduce the tax bill.

The daily insurance program goes beyond family insurance

Is your professional or business activity required to subscribe to some type of insurance?

In that case, review the last annual statement you made to the company of your business billing or the number of workers you employ. These are two concepts that according to the policy in question you have to regularize annually.

There is more insurance to review, but we will see that in another post, while I leave you with: How to reduce the insurance bill: 7 + 1 advice to pay less.

conclusion

My check to keep insurance up to date is almost complete. After the modifications, I admit that I have not saved much, about 20 dollars. It’s only 1% of what I pay regularly per year on insurance. To this, I will have to add what I can reduce in life insurance.

A review of the payments to verify that they are up to date is the finishing touch to remain calm for another year.

I hope this guide helps you get your insurance up-to-date, and if you can’t spare a lot of time, seek help from your insurance broker.

Now you know what I review of my insurance contracts, it’s up to you to tell us how you do it!

5 frequent mishaps that result in compensation for domestic accident in home insurance

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domestic accident in home insurance Image courtesy of Kaboompics - Freepik

There are many incidents that can arise in a house. We always think of mishaps that cause extensive damage: a fire, a theft. But there are other incidents that …

At first, glance, if I talk to you about compensation for a domestic accident, you may not know what I’m referring to. If I relate it to home insurance, the range of possibilities that opens up is significant.

If you have taken a tour of the Internet, you will have read in the forums how badly insurance companies turn out. And possibly they are right.

Insurance companies are not an NGO, they seek to make a profit. Therefore, obtaining compensation for a domestic accident can be a daunting task.

The truth is that over a year, one in four insured households suffers a mishap.

The 5 mishaps at home that result in compensation for a domestic accident

There are many incidents that can arise in a house and there are many benefits that home insurance includes. We always think of mishaps that cause extensive damage: a fire, a theft. But there are other accidents that take the cake and of which you must be aware.

Obtaining compensation for a domestic accident can be a difficult task if when taking out the insurance you have thought that everything that happens is covered. A frequent mistake but not the only one.

The companies have provided themselves with repair services with which they substitute compensation for the provision of a service. With this, they intend to achieve at least two objectives: solve the problem of having to look for the professional on duty and, above all, reduce the amount of the claim.

For this, they need the client to allow them to use it, so it is up to you to decide between the service or compensation for a domestic accident.

According to insurers, these are the incidents they attend to most frequently.

1. Water damage, the most common incident

A water leak, a leak, or a flood in your home, in addition to being an inconvenience, can also become a headache. For insurance, water damage is the event that accumulates the most number of claims.

Many of them are due to the lack of quality of the house, to the age of the facilities, if not to an oversight. According to the report We Are Safe, in 2016, insurers handled nearly 2.3 million water damage claims. By themselves, they represent a remarkable figure to which many others caused by rain should be added.

Within water damage, these are the most frequent types of mishaps assumed by insurers.

1.1 Water leaks

From the tap that is left open to the water leaking from a pipe, water leaks are the most frequent incident and many times, problematic and expensive to solve.

Most insurers include, along with repairing the damage, locating and repairing the water fault that causes them.

But be careful because they usually exclude everything that smells like maintenance. Thus, many policies exclude the repairs of visible pipes, of installations that present a notorious state of corrosion or neglect. And also the damage that these breakdowns have caused.

When the cause of the damage is not on the premises of your home, your insurer will postpone dealing with the damage until the community or the neighbor repair the fault.

1.2 Atmospheric phenomena

Almost all insurers include damage caused by atmospheric phenomena in their policies. These include damage from leaks or leaks of rainwater.

But there are many that put as a condition to address the damage, that the rainfall exceeds 40 liters per square meter and hour.

Some companies are adopting this condition and accept lower intensities as long as the rain has caused noticeable damage in other nearby homes with similar construction characteristics.

The poor condition of the cover or the damage caused by water seepage through doors and windows are also grounds for exclusion for insurance.

1.3 Civil liability for water damage

According to the estimates of the insurance employer, every 5 minutes there is water damage to a third party. And it is usually due to the fact that we have forgotten to turn off the tap, lack of maintenance, a blockage, or ruptured evacuation pipes.

But in these types of mishaps, as important as the origin of the breakdown, is the relationship between the person causing it and the home insurance. For this reason, it is convenient for you to assess what it may cost you not to have family responsibility contracted in your home insurance.

2. Glass breakage, a growing fracture

Claims for breakage of glass have been growing proportionally to how the guarantee has been extended. Today the vast majority of insurers cover mirrors and fixed glass, sanitary ware, or cooktops. Therefore the exclusions have been reduced to crystal lamps and glassware.

Besides this, there are some limitations. In the case of the cooktop, the benefit is reduced to replacing the glass or compensating you for it if the hob is not manufactured.

Obsolescence is a factor to bear in mind because insurers do not offer cosmetic damage to the guarantee. For example, if the toilet model is not manufactured, you will have to settle for a similar one or pay out of pocket to replace the rest of the bathroom parts.

3. From DIY to family assistance, it is home assistance services

Home care benefits have climbed to third place in the rankings. There are already more than one million assistances registered by insurers in 2016.

It is a guarantee that does not generate compensation for a domestic accident but rather the provision of a service. Insurers make available to the client a series of urgent repair services in fire, explosion, flood, or theft claims.

In other cases, where there is no coverage by the policy, the insurer puts you in contact with the professional. For example, among the most common is the urgent locksmith to open the door because we have left the key inside or the lock has broken due to wear. Plumbers, electricians, masons, glaziers are some of the professionals included in-home assistance.

To these basic benefits, many companies have added home appliance repair or DIY assistance services. Most also have a computer, legal, or family assistance in the event of an accident at home.

Of course, to receive the service you must necessarily contact the insurer through the helpline. Also, some services are limited to a specified number per year or a maximum of labor hours.

4. Electrical damage, a controlled short circuit

Electrical damage already accounts for about 15% of the total claims that insurers deal with a home. As you can see, it is the fourth cause that can lead to compensation for a domestic accident. Year after year they increase in number in the same way that we have increased the number of electrical appliances at home.

Electrical damage is understood to be those related to electricity. They are usually caused by voltage surges or drops, short circuits, abnormal currents, electrical faults, or those caused by lightning strikes.

The age of the devices or the operating time also favors the appearance of breakdowns. Thus, for example, the largest number of complaints is concentrated in refrigerators, Vitro ceramic, and televisions.

5. The friends of others, a butron for insurance companies

Theft ranks as the fifth cause in the number of claims but rises to second place in terms of the amount of compensation paid. A butron for insurers, for which they lose about 850,000 dollars a day in compensation, according to the sector’s employers’ association.

Although these numbers do not differentiate if the damages are due to theft or theft, you should know what each thing is to avoid errors. Insurers are very clear about it and distinguish it in their contracts.

In both cases the conclusion is the same: thieves take your goods. The way they do it is what distinguishes each of the actions:

  • Theft : Taking possession of other people’s things, using violence or intimidation on people or force in things.
  • Theft : Taking the goods against the will of the owner without any of the circumstances that characterize the theft.

In the market, you will find a wide catalog of products that incorporate the theft guarantee. Even different variants in the offer of the same insurer.

Although theft and damage caused in the attempt are part of the basic coverage, theft usually only covers it if it occurs inside the home.

When the abduction occurs on the street, we can speak of a robbery outside the home. And in this case, they normally have to attend to be covered, the same circumstances as in the theft. Bad business if the loss is due to carelessness or the action of a pickpocket.

Before contracting this coverage, it requires that you make a detailed analysis of the conditions and limitations imposed by the insurer.

One cause for concern: personal accidents

So far we have seen the most frequent mishaps that lead to compensation for domestic accidents. But I cannot let it pass that 80% of these accidents are suffered by people who live in the home. Hence, more and more insurers include accident coverage in home insurance.

It is in our home where we feel safest but we must also be cautious in certain situations. It is a fact that it is where we spend the most time and therefore the greatest risk of suffering an accident. Thus, the groups that suffer the most are children under 5 years of age and adults over 65. The kitchen and the bedroom are the most conflictive scenarios and where the greatest number of accidents are recorded.

Falls and bumps are the most frequent causes of personal accidents. But you should not lose sight of cuts and wounds, poisonings, burns, choking or suffocation, and electrocutions. Between all of them, they account for about 60% of personal accidents.

But I do not want to end this article dedicated to the most frequent incidents that give rise to compensation for a domestic accident, without telling you some curiosities.

Curious fact: about 14.3 million homes do not declare any claim per year. But there are 75,500 insurances that accumulate five or more claims a year, 10% of all declared mishaps.

What group are you in?

What type of incident is the most frequent in your home?
Now it’s your turn! Leave us your answer in the comments.

Do I need to buy insurance if I have a potentially dangerous dog

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If it is a dog and it is classified as potentially dangerous, you need a license to have it.

Having a pet means that at some point it can cause harm to third parties. If it is a dog and it is classified as potentially dangerous, you need a license to have it. Do you want to know what requirements you must meet to obtain it?

The last week showed me some videos of a new friend who has missed one of my nephews. It is a puppy dog, of which I do not remember the breed but it does have a pedigree, and of which they tell me that it does not need PPP (Potentially Dangerous Dog) dog insurance.

At first, I was reassured to know that his breed is not classified as a potentially dangerous dog. But I must admit that I was disturbed to learn that when he grows up, he could be considered dangerous due to his characteristics.

A couple of days ago I was reading this headline in the newspaper 20 minutes: A loose pit bull without a muzzle bites a 19-month-old boy and the owner of the animal flees the place. We often see news related to attacks on people whose protagonists are potentially dangerous dogs.

In one of the last published posts, I spoke to you about the coverage of family civil responsibility for the possession of pets and its limitations. One of them is that certain breeds need to have their own PPP dog insurance.

I imagine that you have already discovered what this article is about. Exact of potentially dangerous dogs and the obligations of their owner.

What are potentially dangerous dogs?

Potentially dangerous dogs are those corresponding to these breeds and their possible crosses:

  • Pitbull terrier
  • Staffordshire Bull Terrier
  • American Staffordshire Terrier
  • Rottweiler
  • Argentine Dogo
  • Fila Brasileiro
  • Tosa Inu
  • Akita Inu

But in addition, the law considers potentially dangerous those dogs that have been a trainer for the attack. Also, those that have a marked aggressive character, who has been the object of a complaint for a said circumstance or for having carried out attacks on people or attacks on other animals.

Any dog ​​can become dangerous. Like any pet, dogs must be trained and educated to avoid possible behavioral and aggressive problems.

Other traits of the animal such as a powerful and robust appearance, agility, vigor or resistance, a voluminous head, with large and strong jaws or reaching a height of between 50 and 70 cm or a thoracic perimeter of between 60 and 80 cm or weight greater than the 20 kg, can include your dog among the PPP.

In addition to these details, each autonomous community has included its own races. Thus, for example, the Doberman is considered a PPP in the communities of Andalusia, Cantabria, Catalonia, Galicia, or Extremadura. These last four also share other breeds such as the Bullmastiff, Dogo de Bordeaux, or Presa Canario.

What requirements do you need to adopt a potentially dangerous dog?

To be able to adopt a potentially dangerous dog you need to have an administrative license that you have to obtain from your Town Hall. But for it to be issued you must meet a series of requirements:

  • Be of age.
  • Not having been convicted of crimes of homicide, injury, torture, against freedom or against moral integrity, sexual freedom, and public health. Nor may you have been associated with an armed gang or drug trafficking, or deprived by judicial resolution of the right to keep potentially dangerous animals.
  • Not having been penalized for serious or very serious infractions
  • Obtain a certificate of psychological and physical fitness.
  • Have an official veterinary certificate of the dog that confirms that it does not have any contagious disease, that it is correctly vaccinated and dewormed. And most importantly, it shows no signs of aggression.
  • Show that they have entered into an insurance liability for damage to third parties. The coverage may not be less than 120,000 dollars.

This license is valid for 5 years after which you have to renew it, having to comply with all the previous points.

What rules must a potentially dangerous dog meet?

A PPP dog, unlike those that are not considered dangerous, must comply with a series of rules. These are some of the security measures established by law:

Identify the pet and register it in the Register of Potentially Dangerous Animals of the municipality of residence of the owner. You are obliged to communicate the personal data and place of residence of the person who cares for and is responsible for the animal. If you change your residence for a period of more than 3 months, you must register it again in the corresponding autonomous community.

The abduction or theft of the animal must be reported within 48 hours after it is known. It must also be done when it is transmitted or dies, an act with which the registration sheet is closed.

When the PPP dog is in public spaces you must have the license and the inscription in the special registry at hand. In addition, you must adopt a series of measures, such as:

  • The use of an approved muzzle and appropriate to their morphology.
  • Always be tied with a strap or chain, it cannot be extendable and have a length greater than 2 meters. In Andalusia, for example, the length is limited to one meter and minors are prohibited from passing through places of leisure and recreation.
  • You will not be able to walk two or more potentially dangerous dogs at the same time.
  • It is prohibited for an animal considered potentially dangerous to be unleashed or outside a closed area, although it is private property.

Failure to comply with these rules can lead to penalties that can range from 150 dollars for a minor infraction, up to 15,000 dollars for those considered very serious. Among the latter is abandoning it, selling or transmitting without a license, not having a license, or training it to activate its aggressiveness.

PPP dog insurance, when is it necessary and why?

Having a pet, be it a dog or another animal means that it may cause harm to third parties. Therefore, it is advisable to have civil liability insurance that covers these damages. The normal thing is to have this coverage included within the family civil responsibility of the home insurance. Sometimes it is insufficient or simply the law requires you to take out specific insurance.

Before I told you that to obtain the license to have a PPP it is necessary to prove that you have subscribed to a civil liability insurance to cover material and personal damage caused to third parties. Therefore, PPP dog insurance becomes compulsory insurance. And as with other mandatory insurance, it must meet a series of requirements, including guaranteeing a minimum capital.

In addition to civil liability and legal defense, PPP dog insurance has other coverage that you can purchase additionally. These include specialized telephone assistance or veterinary assistance. You can also contract the collection of compensation if the animal is accidentally killed or stolen. In case of loss or misplacement, advertising or reward expenses for its location.

conclusion

Having a pet comes at a cost. And if it is a PPP dog, the budget increases considerably. To be granted the license you have to go through the cash register to obtain the certificate of psychological and physical fitness. You will also have to pay for the veterinary certificate that proves that the animal is not sick. And finally, you will have to pay around 60 dollars for basic PPP dog insurance. If you want more coverage, you can pay double this amount.

It is proven that the most decisive factor for a dog to be emotionally stable is good learning and not the breed. But you may have noticed that the demands between one place of residence and another may vary. This leads to some questions that, once again, demonstrate the inequality suffered by the citizen according to the community he belongs to.

How can it be that a dog can be considered potentially dangerous in one area, with the detriment that it entails for him and his owner and the neighboring area is not?

How to cancel insurance: Guide to do it efficiently

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cancel insurance

This article is intended to be a guide on how to cancel insurance efficiently. There are some factors that may go unnoticed and that justify that …

A good part of the inquiries I receive are related to the claim by the insurer for unpaid premiums.

This post could be very brief if I just tell you: meeting the deadlines set in the law will not have problems.

If you notice the title of the article, it talks about how to cancel the insurance and not when to do it.

There are some factors that may go unnoticed and that justify reading this little help guide.

The Insurance Contract Law, since last January 1, establishes that the cancellation of the insurance contract by the policyholder must be notified to the insurer at least one month before its expiration.

You are already clear that you must communicate your desire to cancel the contract within the legal term: at least one month before expiration.

How to cancel insurance efficiently

You should not forget that insurance is a contract in which both parties are bound by a series of commitments regulated by the contract itself and by the law that supports it.

Learning how to cancel the insurance contract and do it efficiently will save you trouble.

Opposition to the extension of the need to communicate in writing so convincing that there are no doubts of your desire. To do this I advise you:

  1. Certified letter or email addressed to the address that you will have from the insurer in the policy.
  2. Notify the insurance broker or policy agent. If you do it to the latter, it will have the same effects as if you communicate it directly to the company.

I never recommend using the contact form available on the insurer’s website, because it will most likely end up in the spam tray.

If you are registered as a user on the company’s website, you can use the form provided for this purpose, but make sure that you provide proof of the operation. Print it out on paper or keep the digital file in case you need to use it later.

Using email is not a good idea either unless you keep a digital record of the communication, its content, delivery, and reading. In many cases, it is the same as with the contact form on the web.

What is the expiration date of the receipt?

The duration of the insurance contract will be determined in the policy, it may not set a term exceeding 10 years and the extension may be established for one or more times as long as it does not exceed one year.

The insurance payment must be made in advance of the established duration, therefore the expiration date is the first day of each insurance annuity.

There are certain branches in which the insurance annuity equals the calendar year. In these cases, the expiration date will be on January 1, whatever the date you purchased the insurance.

This is the formula used by insurers in death and especially health insurance. They are also contracts that usually have installment payments. These two circumstances often induce you to think that you can cancel the contract at a different date to maturity.

Request cancellation before December 1, it will only give the company time to confirm that the cancellation is on December 31.

My payment is divided, when can I cancel the insurance?

The payment of the insurance premium is conditional on the duration of the contract. If the duration is for a specified period without the possibility of renewal, the premium will be paid in a single payment.

If, on the other hand, the duration is annual, renewable, the premium earned will be for the same period of time: one year.

To facilitate the payment of the annual premium, companies can assume to charge it in a fractional manner: monthly, quarterly, or semi-annually. This division does not modify the duration of the contract, therefore the expiration date will be the first day of each new extension of the insurance.

Is there a reason to cancel the policy after the deadline?

The latest modification of article 22 of the Insurance Contract Law introduces a new paragraph that improves the rights of the policyholder.

The insurer must notify the policyholder, at least two months before the end of the current period, of any modification of the insurance contract.

This provision is a lifeboat if we want to cancel the contract without having communicated it in a timely manner.

Your insurance premium has been raised, your medical benefits modified or your travel assistance benefits modified, as these are reasons for you to oppose renewing your insurance. These are some of the changes that the insurer must communicate to you two months in advance, so that you can decide in time to extend the insurance.

Hey, watch out! that this does not operate automatically.

The company will try to collect the receipt if you did not communicate the cancellation in time. In your defense, you can argue the failure of the insurer for not communicating the modification according to the law.

conclusion

How to cancel insurance efficiently has become a longer article than originally intended. The subject required it. You should not take the insurance contract lightly because you could be harmed.

Insurers are not an NGO, their potential is greater than yours. Your best guarantee is to do things according to the law and the contract.

Communicating your desire to the insurer to cancel the insurance using reliable means, will be useful if you have to defend yourself from a non- payment judgment claiming the debt.

Checking the expiration date of the insurance will make your communication more efficient.

But above all, doing it within the legally established period will guarantee its effectiveness.

And if any of this fails, look for the error of the company to cancel the contract.

Further down in the comments you can leave us your answer to these questions.

Has it happened to you that you wanted to cancel the policy and you were out of time?

Can you tell us what you did?

The insurance company has raised the price of the insurance without notifying me

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You check the bank account and, surprise! They have raised the price of your insurance without warning

You check the bank account and, surprise! They have raised the price of your insurance without warning. It is time to ask for explanations and to ask yourself …

I am sure that if you have come this far it is because you have caught a good rebound with your insurance company. And the cause is that the price of insurance has gone up.

You bought the insurance a year ago at a good price and, at this time you have not had any incidents, so why change your insurance? You also think: the renovation company will notify me and tell me how much it will cost.

But suddenly you check the bank account or the credit card and… SURPRISE! insurance has raised an “egg”, and what is worse, without notifying you of the rise.

It is the moment in which the questions and calls to the insurance company begin asking for explanations. If you can talk to her, she will excuse herself saying that she has acted according to the contract you signed and that now you can no longer cancel the insurance, if it was your intention, because you are out of time.

Some readers have already expressed themselves in the pages of this blog in situations of helplessness and abuse of power of the insurer. I invite you to continue leaving your comments at the end of the article.

But all is not lost and since I don’t want you to have doubts about what your rights are, in this post I am going to tell you everything you need to know.

Can the insurance company raise the price of insurance without notifying me?

Yes. The answer is YES. In the same way that bread, fruit, telephone, or electricity go up, the price of insurance also goes up.

We are in a country of free competition – at least that is what they sell us – where it is the market that establishes what the products and services cost. Well, in the case of insurers, they must also comply with what the law establishes.

Article 25.3 of the revised text of the Law on the organization and supervision of private insurance, refers to premium rates, establishing, on the one hand, that they must be sufficient to satisfy all the obligations derived from the insurance contracts. And on the other, that they will do so in a regime of free competition in the insurance market.

According to this, the law only establishes, within the principle of the sufficiency of the premium, the minimum amount that the insurer must charge to respond to the commitments it has acquired.

An insurance contract is a commitment made by the insurer to pay compensation or provide a service in exchange for charging a premium.

Operating under a free competition regime means that insurance rates do not have to be authorized by the administration, nor sent to the DGSFP for review unless they are required in order to verify that they meet the technical requirements.

Ultimately, insurance companies can raise or lower the price of insurance, depending on the economic results.

However, this freedom of insurers to modify the premium must meet a series of requirements for what the price of the insurance implies within the contract itself.

What role does price play in the insurance contract?

The price of insurance plays a fundamental role in the contract. But I am not referring to the amount but to the relationship, it has within the insurance.

An insurance contract is a commitment made by the insurer to pay compensation or provide a service in exchange for charging a premium. This is established in article 1 of the Insurance Contract Law, therefore the price is an essential element of the insurance contract. Any modification that the contract undergoes, for this reason, implies a contractual modification that you must expressly accept.

But what is more, the acceptance by the parties of the modification of the insurance price must be formalized in writing, in the policy itself, or in a document attached to it.

So, should the insurer always communicate the renewal of the insurance to the policyholder?

Well NO, you shouldn’t always. There are certain cases that will modify the price of the insurance upon renewal, in which the company will not be obliged to inform the policyholder.

These assumptions are specified in two situations, when the renewal of the premium is provided for in the contract and when it is not. I tell you in detail.

The renewal of the premium is provided for in the insurance contract.

In this case, the insurer does not have to communicate the new insurance price in advance of the renewal.

I always recommend that you read the policy to know what we are signing and the terms in which we do it. These are some cases that usually appear in the contract for which the insurer will not inform you if the price of the insurance increases.

The accident rate

This is one of the reasons why insurance goes up more often. And it does not matter if it is a car or damage policy. Many insurers include in the policy the clauses that determine the increase in the price of the insurance according to the number of claims you have during the annuity or their amount.

Depending on the company, the price of the insurance can double and they could even cancel the contract.

When the increase experienced by your policy is due to the fact that you have had claims, the company would only be obliged to inform you if, in addition, it has modified the rate premium.

Promotions or commercial discounts

There are many insurers to attract customers to apply commercial discounts on their policies that last a certain period of time. These discounts do not modify the insurance premium, although its final price does.

In other cases, especially in health insurance, companies offer promotions in which you will not pay anything or only a part of the premium during the first 3 months. The following year, you will have to pay the 12 months at the agreed price and even increased by the IPC

CPI rise

If the Consumer Price Index (CPI) goes up, your insurance can too. The CPI is the increase in goods and services between two determined periods of time. The insurance benefits are based on the payment of compensation for the value of the goods or the provision of a service. Therefore, there are insurers that protect themselves from these increases by including in their contracts a clause to review the price of insurance according to the increase in the CPI.

Above all, it is the insurers that market health, death, or damage insurance that include these types of conditions.

Increase in rates and taxes on insurance

It is not frequent that it happens but sometimes it happens that the government of the day modifies the taxes or surcharges of the insurance contract. When this happens, the price of the insurance increases, but the insurance conditions do not change.

These are the most frequent reasons for insurers to include renewal conditions in their contracts and thus avoid the duty to inform in advance. The policyholder in this case does not have to accept the new conditions as they accepted them at the time of contracting the insurance.

The reasons that modify the price of the insurance are not foreseen in the renewal of the contract.

In this case, the policyholder must accept the new conditions as provided in article 5 of the Insurance Contract Law (LCS).

If the insurer intends to increase the premium and the contract does not contemplate it, then it is obliged to inform the policyholder two months before the renewal.

In the event that the insured does not accept the increase in the price of the insurance, the company may refuse to extend the contract, which may not be terminated until expiration.

It may also happen that the insurer fails to comply with the notification period or that it does so in such a way that the client does not have proof of the modification, in which case it must respect the premium of the previous annuity or it will accept the termination of the contract.

What can you do if the insurance price goes up?

Insurers are free to set the price of the insurance, which should be sufficient to allow them to meet the commitments assumed. But this freedom is subject to a series of rules that they must comply with.

If it happens to you that the company raises your insurance without notifying you, the first thing you have to do is review the conditions of the policy. With this, you can check if the increase corresponds to any of the renewal conditions. In that case, the fact that the company has not notified you in time does not allow you to cancel the contract without notification and after the deadline.

Some insurers camouflage in assumptions included in the contract other increases that have nothing to do with it and do not inform the insured. In that case, you will have to give your express consent to the new conditions.

When the company decides to raise the price of the insurance and informs you before two months of expiration, you will have a period of 15 days to communicate the acceptance or objections to the new conditions. If you do not ask for cancellation but you oppose the insurance company’s proposal, it may terminate the contract upon expiration.

Different is when you do not communicate the renewal or do it at the wrong time. In that case, you can claim that you respect the premium for the previous period or cancel the insurance. To solve your doubts about how to do it, I advise you to download this guide How to cancel insurance efficiently. In this article, you have other alternative solutions 3 Tricks to cancel the insurance and not claim the receipt.

Now it is your turn to leave your complaints or the answer to this question in the comments.

How have you acted when the price of your insurance was raised without warning?

Learn how to identify the best life insurance for your family

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identify the best life insurance for your family

Check out some tips that will help you identify the ideal life insurance for your family.

The best life insurance is one that meets your family’s real protection needs and offers payment terms that fit your budget. Therefore, to find the most suitable option, it is necessary to conduct market research.

In this sense, knowing the main plans offered by insurers and evaluating the coverage provided by them is the first step towards successful contracting. Here are some tips that will help you identify the ideal life insurance for your family.

Why is life insurance so important to your family?

Life insurance is one of the most important ways to guarantee security for your family. Especially because nothing compares to the tranquility of knowing that your loved ones will be supported in cases of an unexpected absence.

In addition, insurance also provides solutions that can be used in life by the contractor. In all plans, an indemnity is allocated to beneficiaries whose value is defined in the contract.

Among the coverage possibilities, we highlight:

  • death from natural causes;
  • accidental death;
  • partial disability due to accident;
  • total disability due to accident;
  • permanent disability due to increased accident;
  • serious diseases ;
  • daily due to temporary disability;
  • funeral assistance.

How to choose the best life insurance for your family?

Before taking out insurance, several factors must be considered. Check out some of them below.

Evaluate the coverage offered

As seen above, there are several coverage possibilities that can be included in life insurance. To define them, take into account your demands and risk factors – such as age, predisposition to disease, exposure to dangerous environments, etc.

Then, search for a plan that includes all defined coverages. Then, research the insurers that make these policies available and identify which one offers the best value for the money.

Choose the monthly fee that best fits your budget

Life insurance is a protection that is contracted with the intention of continuing. Thus, it is necessary to choose a value of installment that fits the family’s monthly budget.

The idea is that the decision falls on the product that will meet everything you need, but with an investment that can be maintained over the long term. For this reason, it is important to do simulations.

Do simulations to find the best option

Being able to have the facility to do virtual simulations is essential for choosing the most suitable life insurance for you. The main advantage of a simulation tool is the speed with which results can be obtained based on the data provided.

See how simple it is? With these tips, you are ready to move on in search of the best life insurance to protect those you love.

And now that you understand the factors that you should be aware of when defining the plan, how about simulating life insurance to keep you and your family safe?

How does flood coverage work in home insurance?

The climate and poor quality of the facilities in your home are not the only reasons why a claim can be caused. © Pixabay

There are many reasons that can make you find your house flooded by water from one day to the next. However, do not be overwhelmed because many home insurance includes this coverage in their policies. So that you have everything clear, today, we tell you what they are about and how they work.

One of the main causes of accidents inside a home corresponds to damage caused by water.

Indeed, there is a long list of situations in which this type of accident can occur. One of the most common are floods caused by poor construction or a house breakdown.

Leaks from rain, moisture in the walls, pipes or leaks in the pipes can be just some of the problems that cause your home to flood.

However, the climate and poor quality of the facilities in your home are not the only reasons why a claim can be caused.

Human failures, such as forgetting to turn off the tap or letting the bathtub run, also represent a significant percentage of the causes of damage caused by water inside domestic homes.

Water damage can range from minor damage to complete flooding of the home. For this reason, having Home insurance that includes this type of coverage can be very convenient when facing a situation of this type.

Let’s take a deep dive into what these policies propose and how far their coverage goes.

Water damage: what do they contemplate?

Before reviewing the coverages that a water damage policy can include in Home insurance, it is important that you find out if your contract includes these types of incidents.

Indeed, there are different types of home insurance and each one is different, therefore, yours may not have flood coverage.

On the other hand, the corresponding compensation and replacements will depend on the type of policy you have previously contracted.

Among the most common coverages that can be found in this type of insurance are:

Rain damage

In case of heavy rains or that they produce some type of accident in your home, the insurer may compensate you as long as the intensity of the same exceeds that established by the company.

Damage caused by meteorological phenomena

In addition to rains, some home insurance policies include water damage caused by meteorological phenomena such as strong winds, storms, among others, among their coverage.

Damage caused by floods

In the case of floods, the policy may stipulate that compensation will be made on the damage produced, provided that the origin is breakage of channels or ditches on the surface.

Damage caused by extraordinary floods

It may be the case that the magnitude of the flood is such that the insurance company declares the loss as an extraordinary flood.

How far does the coverage of this type of policy go?

flooded kitchen
These types of policies include exclusions that you should know. 
© Pixabay

As with other types of insurance, coverage will depend exclusively on the policy you have taken out.

While some insurances will cover only the continent of your homes, such as ceilings, floors, and walls, others will also cover the content, that is, appliances, furniture, etc.

In turn, the vast majority of Home insurance with water damage coverage includes Third Party Liability.

Are there any exclusions in water damage coverage?

Indeed, there are some situations where, although there is a loss caused by water, the insurer is exempted from any obligation to make payment for the damages produced.

Among the most common exclusions are:

  1. Exclusion of damages caused by public pipelines
  2. Exclusion of damage caused by water if the apartment is rented and the use of the house has not been communicated to the company.
  3. Exclusion of water damage if pipes are exposed.
  4. Exclusion of water damage coverage due to forgetting to turn off the tap when the insured home has been uninhabited for more than 72 consecutive hours.
  5. Exclusion of damages due to leaks that have occurred through roofs, walls, and/or walls from adjoining or superior homes.
  6. Exclusion of damages derived from the freezing of water if the house has been uninhabited for more than 72 consecutive hours and it is shown that the necessary precautionary measures have not been taken.

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