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How to choose a car insurance company without mistakes

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How do you choose an insurance company before hiring car insurance

When I started this blog, I made it my goal to help insurance consumers. One of the most frequent doubts is to choose an insurance company before purchasing insurance. They all offer similar coverage and services, so most of the time it is the price that tips the balance towards one or the other.

How do you choose an insurance company before purchasing car insurance?

Do you search the Internet directly or do you do it through comparators? In a few months, I have known that several blog subscribers who have taken out car insurance with the same company they wanted to leave. Just a brand change in insurance.

These and other things will be part of the content of this article so that you have no doubts about who you take out the insurance with.

3 Things to keep in mind before choosing an insurance company

For many insurance clients, it is difficult to choose the one that is best for them. In recent years, many insurers have been competing in the automobile segment. This means that there is a large number of offers based on a good number of coverage at cheap prices. Before going into the matter, I want to remind you of three aspects that you should keep in mind before choosing the insurer in which you will take out your car policy.

1 – It is mandatory to have liability insurance

First of all, in Spain to be able to circulate with a vehicle it is mandatory to have civil liability insurance that covers the damages that you may cause to third parties.

This is the main guarantee of your policy and while all insurers have to provide the same coverage, the price can vary considerably from one to the other.

2 – Secure investment

Buying a car is a great investment, for many the investment of a lifetime. Therefore you have to take care that it is not lost at the first change if you suffer an accident. The way to do this is to take out “comprehensive insurance” in its different forms. Think about it.

If the vehicle is new, the best way to insure the investment is to take out “full-risk” insurance in its different forms. But if the car is a few years old, choosing an “extended third party” maybe your best choice.

3 – Each user has a different profile.

You have to be aware that each individual has a different profile so their exposure to risk is different. The price of the insurance will vary depending on your personal circumstances. Each insurer will have its price for you, for your characteristics, those of the vehicle, and those of each guarantee.

There are three aspects that will determine your choice, especially these last two.

We each value investments differently, but what we don’t do is spend more than necessary. If you have bought a second-hand car, with a few years in tow, it will not be worth it to buy an all risk. And of course, there is your profile since almost no insurer will be able to hide your driving record.

Do I contract my insurance directly or through a mediator?

There are many companies that operate in the car insurance segment – the most profitable in the sector – so each one has to make a hole. There are currently two types of insurers: traditional companies and those that operate in direct sales.

insurers that operate in direct sales have lower structural costs, which allows them to offer low-cost products. Their online sales channels do not leave space for the mediator, so you lose the personalized treatment.

To make the search for the ideal insurance easier, insurance comparators were born. A bet in which the necessary subject is the insurance broker, without him you would not be able to contract the insurance through the comparator.

But there is more. At the beginning of the article, I was telling you about a reader who had changed insurance thinking that he was changing insurance and had not been. You will see why later.

All companies offer the same, how to know which one interests me the most

You only need to take a look at the website of the insurers to see that they all offer two modalities, third-party insurance or all-risk insurance. Around a basic package of coverage – mandatory and voluntary civil liability, driver accidents, or criminal defense – other guarantees are included until each modality is formed.

In the third-party mode, you can find from the basic insurance to an extended third party with coverage of the fire, theft, glass, travel assistance, or withdrawal of the driving license.

When it comes to “all-risk”, in addition to the above, you have your own damage coverage included with or without excess.

If all the insurers offer the same and my profile is identical for all, why is there so much difference in price in the insurance?

The simple answer is that each one values ​​risk in one way. But the truth is that it is the coverage offered by each one that makes the difference.

In some guarantees the differences are evident. You have a clear example in legal protection, it is not the same to have it limited to 600 dollars than 1,200 dollars. It is not the same that in your own damages they compensate you for 100% of the value of the car than for its market value.

Choosing an insurance company does not depend solely on the price, nor on the guarantees offered by each product. In the current market, there are other factors that you must assess, which are not directly linked to the offer but on which your satisfaction with the insurer will depend.

3 Factors that will help you choose an insurance company for your car

You have reviewed the coverage, the price is attractive, that maybe your insurance. Now you only have to check a few things, these are some of those that I would review.

1. Misleading offers

You must be careful and check if the conditions for the second year are the same as when purchasing the policy. Most of the time they are commercial discounts that do not have continuity in time and when you renew you are surprised.

If your intention is to contract an insurance package (car, home, motorcycle) pay attention to the obligations you contract. Think about whether you will continue to have the same needs later on or will have to pay for something that you no longer have.

2. Be clear with whom you contract

In the same way that the Internet can make things easier for you, it can also complicate them. Therefore, before purchasing, you should go a little beyond the simple offer, you should investigate what is behind it.

3. After-sales service

If you choose to choose an online insurance company, check that it has the means to communicate in a way that is accessible at any time and circumstance. For certain questions, you will have to address yourself in writing, so it must be clear how to do it.

Find out about the opinions that other citizens have about the insurer. It may have the best coverage on the market or the best price, but if the service is not good it will be of little use if you have to litigate for it to be provided.

I could list other aspects, but that will already be content for another article.

conclusion

You may have noticed that some of these actions take time to do. The most important thing is to be patient enough to carefully compare each of the offers.

Analyze that the coverage and the price is in line with what they offer you. Track all the information about the product, who markets it, or how the insurer behaves in the opinion of users.

On the Internet, all sites must have visible to the visitor the links to pages such as “legal information” or “privacy policies” and these are a source of information. Do not stop visiting them.

True to my habit, I leave you this question so you can leave us your opinion in the comments.

Do you use any of these criteria to choose an insurance company or do you entrust this task to an insurance mediator?

5 facts that insurers look at before purchasing car insurance

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Who has not fallen on the world when they have said that they did not do car insurance

As a result of the inquiries received about the refusal of some companies to take out car insurance, I have thought about telling you in a post that insurers look at before accepting the risk. What are they looking for and how do they do it?

Who has not fallen on the world when they have told him that they did not do car insurance or that it was going to cost him a kidney?

It is frustrating, especially if the car is waiting for you to release it. Of course, it is a situation that you did not expect after years of driving. And on top of that, it happens to you with insurance that is mandatory to contract to circulate legally.

But each time insurers are more concerned about their results and look in detail who will be their client and what risk they are going to insure. So it is not surprising that, at the first chance, you find a negative as they do not like the information about you.

What insurers look at before purchasing car insurance

Just like you, before buying a car, you assess the advantages and disadvantages of each make or model, insurers do the same with their clients. Because for them it is not the same that you are a good client that you can be a whirlwind of spending.

In order to get to know their customers better and in advance, companies have provided themselves with various files in which they store the history of each one.

These are the five most important facts that insurers look at before purchasing car insurance.

1. The history of the policyholder

You sure think there is a mistake in the title. We are talking about insuring a vehicle, the logical thing is that they are interested in the history of the driver and not the policyholder.

No, there is no mistake.

In-car policies, three different people can be given: the driver, the owner of the vehicle, and the policyholder. Usually, these last two coincide in the same person. But the driver can vary, and if the companies focused their attention on him, he would surely have an immaculate record.

They focus their attention on the policyholder because he is the one who is interested in taking out the insurance because he is the one who assumes the payment of the premium and therefore if he wants to enjoy good conditions, he will ensure that he has a good record.

If the holder of the policy you want to enjoy good conditions in insurance, ensure having a good driving record.

A simple query to SINCO about your history as a policyholder is enough to know if you pass the first filter.

2. Driving experience saves you money

The information about the driver also does not escape the analysis of the data that insurers look at. If you are going to be the driver of the vehicle, having a fresh driving license is inconvenient.

If you are new, the normal thing is that they establish a price for the insurance much higher than if you are an experienced driver. But also if you have not reached 25 years of age, they will most likely reject the purchasing.

Each insurer has its own rules, although almost all agree to reject the new driver unless it is linked to a good client.

3. If you are a good payer, you will avoid going to the CCS

There are many insurers that check if you have left debts out there. They look to see if they are included in a file of defaulters before accepting the insurance contract.

But the truth is that this type of consultation is becoming more and more frequent, even if you intend to contract through an insurance agent or broker.

If this happens to you, the answer is in this article: Where can I insure the car when no insurer wants me.

4. Expensive and powerful cars don’t like insurance

So far what insurers look at in the personal circumstances of the policyholder or driver of the insurance. But there are others that are linked to the vehicle that provides data on the level of risk that it intends to insure. I’m going to talk to you only about two of them that for different reasons will determine the acceptance of the insurance,

4.1 Luxury cars throw the balance sheet

More and more insurers look down on high-end cars. The reason is none other than the high cost of repairing the claims where they are involved.

You probably think that the premiums they pay are higher than those of a utility vehicle. True, but even so many insurers are not compensated.

And the reason is none other than the current claims processing system where the company that is creditor has to attend to the damages of its client.

Currently, practically all automobile insurers adhere to the Claims Compensation Information Agreement.

I give you an example, while the replacement of a headlight in a Citroen C3 does not reach 600 dollars, in an Audi Q7 it can exceed 1,000 dollars. In both cases, the creditor insurer will receive 882 dollars from the debtor, the amount established in the agreement as to compensation. While one earns money, the other loses it. Hence, they are increasingly reluctant to buy luxury cars.

The way to maintain balance in the accounts of the insurer sometimes happens by closing the high-end vehicle market.

4.2 A lot of power and little weight a difficult relationship in insurance

The power and weight of the vehicle are two characteristics that by themselves do not represent a greater risk for insurance.

My car is a 150 hp Altea, which for many insurers is just a family vehicle. The Seat León, with the same engine, for many companies is an aggravated risk, and if it is associated with a young driver, an excluded risk.

As you can see, not only power influences, also weight. And above all the potential risk that the profile of the associated driver poses for the insurer.

5. The usual address of the garage

We are living in an era of big data where information is analyzed to the last bit.

Why am I telling you this?

Because for insurers it is not the same for the car to circulate and sleep in a marginal area as it is to do so in a residential and guarded place.

For this reason, while a few years ago the province was the reference, now, they descend in their analysis to the postal district. In this way, they try to protect themselves against possible fraud, which is more frequent in economically depressed areas or neighborhoods.

conclusion

Although car insurance is mandatory, insurers do not always do their part. If the data on the policyholder does not match the customer model they are looking for or the risk posed by the vehicle does not convince them, they may refuse to take out the insurance.

I have told you 5 of the things that insurers look at and how they do it. As if you have no history as a policyholder or figures in a file of defaulters, a frequent fact with the crisis, you can be denied the purchasing of insurance.

Nor are those who buy high-end or sports vehicles free from being rejected. Or tuning enthusiasts who make a fortune customizing the car.

And you know, it depends on where you have the address to insure the car or you have to pay a heavy surcharge for it.

Your turn, tell me.

Have they ever given you pumpkins when you want to take out car insurance? How did you solve it?
I would love to read your comment.

What happens if I don’t pay my insurance bill?

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Is it hard for you to ask for the cancellation of the insurance legally and you just return the receipt

Do you regret having taken out this insurance, if your needs were different?

Is it difficult for you to ask for the cancellation of the insurance legally?

You don’t have time to lose and you prefer to return the receipt when they pass it on to you. You have always done it that way, but you have heard, you have been told and then you ask yourself the question: What happens if I do not pay the insurance and return the receipt?

What happens if I do not pay for the car, house insurance …

It is the obligation of the policyholder to pay the premium in advance, at the beginning or at the renewal of the insurance contract.

When you stop paying for the insurance, according to the provisions of article 15 of the Insurance Contract Law, the insurer can act in two different ways. On the one hand, it can terminate the contract, that is, cancel it. Or you can be required in an executive way, normally by means of an order for payment, the payment of the insurance premium.

The first consequence of non-payment of insurance is that if you have a claim, the company is released from its obligation to pay you for its consequences.

If it is also compulsory insurance, you risk being penalized if you do not have it. In the case of car insurance, the penalty can reach up to 3,000 dollars.

1 month of coverage + 6 months to claim


When you stop paying one of the next (renewal) premiums, your insurance coverage is suspended one month after the expiration date. If during this first month you have a claim, the insurer is obliged to attend to it. And you to pay the bill.

The company has a period of 6 months, after expiration, to executive demand the payment of the premium. If after this time it has not been done so, the insurance contract is automatically terminated.

I recommend reading this article because this is not always the case. The Supreme Court is valid that you can claim the insurance payment after more than six months.

But during this time, if the contract has not been terminated or terminated, you can pay the premium and the insurance takes effect again 24 hours after payment.

What happens if I stop paying for life insurance

To answer what happens if I do not pay for life insurance, you have to go to the exceptional treatment that the LCS provides for certain modalities.

In the event of non-payment, this exceptional regime translates into the right to reduction. Through the reduction, the initial insurance is transformed into a similar one with lower benefits. This new level of benefits is the one corresponding to the premiums charged up to that moment.

To qualify for a reduction, at least two years have elapsed since the insurance was contracted. Furthermore, for the reduction to be made, the contract must have a table of values ​​that relates the equivalence between the premiums paid and the benefits once the reduction has been applied.

The reduction of a life policy makes it remain in force until its termination without the need to continue paying the premium.

Moreover, as a policyholder you have the right to return to the original conditions, paying the corresponding premiums and of course before the loss occurs.

conclusion

If what you want is to cancel the insurance contract, because you have sold the car or the house, or you simply want to change the insurance company because it offers you better conditions, it is best that you follow these steps: How to unsubscribe from insurance: Guide to do it in an efficient way.

It was a mistake. There were insufficient funds in the account and you want to continue with the insurance. Well, if the company has not resolved the contract, you are still in time to pay the bill if six months have not passed.

But you must bear in mind that the insurer can terminate the contract at any time. Of course, once the grace month has elapsed and communicated it previously. You can also wait for six months until the automatic termination of the contract.

And above all, do not forget that if you have a fractional payment, paid the first fraction, you are obliged to pay the rest.

And you, are you one of those who return the receipt to cancel the contract or request the cancellation legally?

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!

Do I have to wait for the insurance expert to come before I repair the damage from a claim?

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There is a humidity march in the bedroom and the first thing you think is: Warn the insurance!

You discover that there is a march of humidity in the bedroom and that is the first thing you think. Warn the insurance! And then you wait for the insurance expert to come.

If you act like this, you are among the 9 out of 10 people who do. There is a general belief among policyholders, injured parties, and agents that after a claim, you have to wait for the insurance expert to intervene and assess the consequences. This way of acting is not new, and it has taken root in such a way that, in many cases, even the supervisor of the repair company is confused with the insurance expert.

There are many who, when discovering that they have been robbed at home, instead of calling the police, notify the insurance and then wait with everything mixed up for the expert to arrive. As if their presence were necessary to reorder the house or to make an inventory of what was stolen.

The same happens when a pipe breaks or we have a hit with the car. Instead of calling the plumber to fix the fault as soon as possible, we called the insurance agent and waited for the expert’s instructions.

Now I have to apologize because for years, working for an insurance company, I have nurtured this belief. It is simply the company’s way of controlling the loss from the beginning. And since there is money involved, there is always an argument with which to convince the insured to wait.

If you want to know how to repair the damage without delay, better not leave a line of the article unread.

Is the company obliged to send me to the expert to assess the damage or to the repairman to repair it?

I’m going to be direct. The insurer only has the obligation to compensate for the damages, as long as the claim is covered by the policy.

The Law 50/80 of Insurance Contract provides that the insurer shall indemnify the insured for the term of research or expert reports needed to establish the occurrence of the incident and recorded the number of damages.

At the same time, it allows the insurer, provided the insured agrees, to substitute the compensation for the repair or replacement of the damage.

But the law, as an insured, transfers several duties to you that you must fulfill:

  • Notify the insurer of the occurrence of the loss within seven days of knowing it. If you do it late or don’t do it, you expose yourself to a claim from the company for the damages that your action may have caused.
  • You must report all the circumstances and consequences of the claim. If you do not do so, you could lose the right to compensation if there is intent or gross negligence.
  • And you have to use all the means at your disposal to lessen the consequences of the accident.

As you can see, the law does not say that the insurance expert was required to intervene so do not wait for him. What’s more, for some time now, many insurers have been dispensing with the on-site expert in low-value claims.

Do I have an advantage if the insurance expert intervenes?

I have consulted OneNote to see what references I have written down and two notes appear referring to the advantages of having an insurance expert intervene after a claim.

The first is the payment commitment that the expert on behalf of the company can give to the workshop or repair service. In this way, in exchange for deciding how to repair it, you will not have to anticipate a single dollar.

The same happens with the valuation of the claim, if you agree, you will not have to wait long to collect the compensation.

As you can see, some advantage exists as long as the insurer benefits.

What problems can I have if I don’t do what the insurance expert or the company says?

You must always keep in mind that the assets are yours, they do not belong to the company and not to the expert. Therefore, the last decision you have to make because it is your interest that is at stake.

The performance of the expert must be truthful, impartial, and must put the law before the interests of each one. The insurance contract is often open to interpretation and that is where the figure of the insurance expert becomes especially relevant because the balance will fall on the side of the insurer.

Insurance experts are the ones who rule on the causes of the loss, the assessment of the damages, and the other circumstances that influence the determination of the compensation derived from an insurance contract and formulate the proposal for the liquid amount of the compensation.

Tenth additional provision Law 20/15 of Regulation, supervision, and solvency of insurance entities.

If the insurance expert is appointed by the insurer, he will make a unilateral assessment of the damages. But if this is done later, and your actions have been sensible, the expert will attest to what happened and will propose to settle the claim.

How do I act if I want to repair it immediately?

We have seen how the company has no obligation to send the expert and that if it does not do so, nothing should happen either.

The best way to act after the loss is to use common sense as if there were no insurance behind it. If you look at it, the obligations imposed by law on the insured are reasonable in all circumstances.

Then declare the claim to the insurer and provide all the documentation that supports your claim. To do this, take photographs of the circumstances and the damages, delivery estimates, invoices, and all the information that proves the repair or replacement of the goods. And if the damages are substantial or the causes are complex, my advice is that you appoint your own expert. It is preferable to do it at the beginning before the insurer designates yours.

Go to the insurer when you need urgent assistance or when the service you need is mandatory for its repairers.

conclusion

As I have already told you, it is false that the insurer is obliged to send an expert to assess the loss. It is also true that you cannot repair or replace damaged goods without the intervention of an insurance expert.

The expert will not locate the water fault, nor will he paint the car or put out the fire. So why think about insurance first?

Act as if you did not have insurance, document the loss and its consequences, and only then claim the corresponding compensation.

And remember two things:

  1. Except in certain cases,  with the compensation, you can do whatever you want. You have no obligation to use it to replace the goods.
  2. Pretending to take advantage of the insurance by increasing the consequences, falsify the causes or collect compensation more than once for the same damages,  is an illegality that can have unforeseeable consequences.

In short, it breaks with the belief that the insurance expert is mandatory and begins to act rationally.

It is not impossible, everything is a matter of starting.

What do you think, do you think the presence of the insurance expert before repairing the damage gives you an advantage?

When is it mandatory to purchase home insurance

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I often have the feeling that many readers think that it is mandatory to purchase home insurance for the home

I often have the feeling that many readers of the blog think it is mandatory to buy a safe home for housing. Especially when they have requested a mortgage loan and the bank requires them to take out insurance. At least that is what I perceive in the content of quite a few of your questions.

The same thing happens with this as with the secret ingredient in Coca-Cola, many people think that it is cocaine.

In both cases … nothing is further from the truth.

Home insurance is one that has the highest ratio of employment. Three out of every four households have taken out home insurance. But this does not mean that it is mandatory to take out home insurance for your house. Or if it is?

In this article, I am going to discover what is true in all this.

When is it mandatory to take out home insurance for your house?

Today, it is not mandatory to take out home insurance. The law does not require it even when we take out a mortgage loan to pay for the home.

At the end of 2013, the European Parliament approved the European Mortgage Directive that prohibits banks from linking a mortgage to the purchase of a home, life, or any other insurance.

The bank, sometimes, does not limit itself to offering you the insurance, it imposes its contracting arguing that it is mandatory and more, for the granting of the loan.

The truth is that there is an assurance obligation that can often lead to doubt.

What the law says is that it is mandatory to contract home insurance if the bank plans to sell all or part of that mortgage to third parties ( securitize the mortgage) through certificates, bonds, or mortgage participations, it must cover what guarantees the loan with insurance damage. In other words, the bank as the holder of the mortgage is the one who must have the insurance.

The one obligated to take out the insurance is the bank itself, although, in practice, it includes this obligation in the loan conditions. Therefore, since you are not obliged to take out the insurance, you can refuse to do so, regardless of whether you can voluntarily subscribe to it with the insurance company that offers you the best conditions.

You should know that if the financial institution denies you credit for not taking out insurance, you can report this practice, in addition to refusing to take out any other type of insurance.

If I rent a home, do I have to take out home insurance?

If you have already paid for the home, you are also not required to take out damage insurance. But it is recommended that you do it. In addition to covering the risks inherent to the property (fire, explosion, meteorological phenomena, etc.) you will be insuring the damages that you may cause to a third party.

Is it mandatory to purchase home insurance as a renter?

The answer is: no. But the sensible thing to do, even if the law does not oblige you to do so, is to do it.

If you enter a tenant’s house, you are obliged to respond to the damages you cause. If they are to the property you will have to do it before the owner or his insurer. But you will also have to answer, in front of a third party, for those who use their property.

Leaving a badly extinguished cigarette, the fireplace on or the tap running can be very expensive oversights. Damages to the property could be substantial, but those caused to third parties even more so. And if your landlord has insurance to take care of these damages, prepare yourself because the insurer will not miss the opportunity to claim you.

conclusion

If you have ever been told that it is mandatory to take out home insurance, you have been misled.

It is not to write a mortgage. Nor if you are a tenant of a home, much less if you are the owner.

But one thing is the obligation and another to use common sense.

If you are a tenant who unless you have insurance that covers civil liability, will protect you from the consequences of carelessness. If you have a property you own in the house, insuring the theft will not hurt you. Nor is it too much for you to buy legal protection or assistance at home. Having legal advice or repair service can be helpful, as well as cheap.

Finally, if you are on the way to being a homeowner or already are, and since the whole house is yours, you can also buy all the coverage that is of interest to you.

It may also interest you: What guarantees do I need in my home insurance?

I hope you enjoyed this short article as much as I did writing it.

Now it’s your turn, have you ever felt compelled to take out home insurance?
I will be delighted if you tell us in the comments.

This is what it can cost not to have a family liability contract for home insurance

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liability coverage is one of the most used on a daily basis in insurance

In the last post I spoke to you about home insurance, in this I continue to do so. At that time we saw that hiring home insurance is not mandatory, although it is recommended. One reason for hiring is on the insurance liability at home.

A few weeks ago a colleague told me how Murphy’s Law is ready to be fulfilled when you least expect it.

A boy was playing with the ball in the backyard of his house when it ran off hitting the windshield of a car that was driving down the street. From the shock, the driver lost control of the vehicle, going to the semi-empty tables of the corner bar. Fortunately, it was early Sunday and there were only a couple of clients who were injured.

Another event was related to the fire that had occurred in a semi-detached house due to a careless smoker. The fire spread to neighboring homes causing serious damage to the building and its contents.

In both cases, the damages do not occur by chance so someone will have to answer for their consequences. This article is about that, what it is and what home liability insurance covers.

What is the civil liability?

According to article 1902, civil liability is that of any citizen who by action and omission causes harm to another, intervening fault or negligence is obliged to repair the damage caused.

Therefore, for there to be civil liability, it is necessary that there has been damage to a third party. In addition, there must be some kind of guilt on your part and a relationship between your performance and the damage.

The obligation to repair the damage has as a consequence the economic impact that it can have on you. This capital loss will be directly linked to the severity of the damage caused.

In which cases may liability coverage be necessary for home insurance?

If you have liability insurance at home, you have a reason to sleep more peacefully knowing that behind you there is an insurer to solve the problem that you have caused your neighbor below by leaving the tap running.

Having civil liability insurance in the home policy seems to be the best answer to any eventuality that occurs in your home and that affects other people or things. But it not only covers damage to third parties caused by the home but also those caused by the inhabitants of the home.

In the events that I related to you at the beginning of the post, you have an example of the damage that can be caused:

#1. Material Damage

Those caused to objects, houses, or goods to which you or your home cause damage have this consideration. The car, the marquee, or the neighboring houses in the story would be the material damage.

#2. Personal Injury

As you well have assumed, it is about the damages, injuries, and expenses that you may have caused to people. Returning to the incidents of the presentation, it would be personal injuries caused to the customers who were on the terrace of the bar.

Now we will see how the coverage of the civil liability insurance in the home includes the acts caused by all those who live in the insured risk.

Property liability in liability insurance

There are many incidents whose origin is in the home itself or in its facilities. A ruptured pipe can cause significant damage to the neighbor downstairs or to the neighboring dwelling. But imagine if a flower pot or a tile falls and unfortunately hits a vehicle or a pedestrian.

The real estate civil liability insurance covers damages caused to a third party by the use of the home. Therefore, covered damages are those that originate in the building, its facilities, and the contents of the house.

These are in broad lines the coverage provided by real estate civil liability:

  • Damages caused by the use of the house and those caused by the common elements of the building where it is located.
  • Those events derived from the maintenance and repair work of the home provided that the necessary permits are in place. When the person who performs these works is a third party and is the cause of the damage, the civil liability insurance in the home remains in the background, and only in the absence of insurance or insolvency of the deceased will it come into operation.

If real estate liability covers damage caused by the use of the home, what happens when it is rented?

While this is essential coverage for the homeowner, it is also essential for the renter. This will have to respond to the damages caused by the content elements and in many cases, it will also have to do so for incidents caused by the facilities of the continent.

Family responsibility a guarantee that covers much more than your children’s mischief

Family responsibility not only covers the policyholder or the homeowner, but it also covers those people who live in the family home and are financially dependent on the insurance holder. This means that the insurance covers your spouse, children, domestic employees, and all those dependents who live in the house. In addition, the coverage is not limited to damages caused inside the home, also those caused outside.

These are some of the facts covered by family responsibility:

  • The damages that you may cause that are not related to a professional activity,
  • Damage is caused by sports or leisure activities practiced as an amateur.
  • The possession of domestic animals, as long as they live in the house, ensures. But beware that it has limitations. For example, dogs of potentially dangerous breeds must have their own liability insurance, being excluded from this insurance. You should also be careful with pets, reptiles or big cats are not covered.
  • The consequences derived from carelessness with the fire or the omission of the closing of a tap are also covered.
  • If you like barbecues and invite friends and family, the consequences of food poisoning are also covered, of course, as long as you invite and do not charge for the food.

As you can see, family liability insurance covers you much more than the mischief of your children.

The locative civil responsibility, a guarantee for the tenant

You live for rent, you have gone away for a weekend, and when you return you find that you left the tap running. The water has overflowed and the damage is significant. And you have not only wet the neighbor below, in your house, but the water also reaches you over the moccasins.

If you have family liability insurance, you will not have problems to take care of the neighbor’s damages. But what about the damage to the home you occupy?

The leasehold liability coverage is intended to cover your liability to the homeowner when an accidental event that causes damage occurs. Usually, these damages are a direct consequence of fire, explosion, or the action of water.

How Much Does Home Liability Insurance Cover?

You will have noticed that both in property, family, or rental liability, home liability insurance provides coverage in all cases except when it is proven that there has been intent to cause the damage.

Also, like any other coverage, liability insurance has a limit. It is the capital that you have contracted and that will be reflected in the conditions of the policy. Subscribing a very tight amount may not be enough at the time of the claim, in which case the excess must be paid out of pocket. This is something that you have to take into account when hiring insurance.

On many occasions, determining who is responsible for a claim must be settled in court. This implies having legal coverage that is normally assumed by the insurer, who makes the lawyers available to you to help you solve the problem. The price that the insurer has to pay will depend on the success they obtain.

conclusion

There are many events in human life that can cause harm to a third party. Experience shows that liability coverage is one of the most used on a daily basis in insurance. The events of material and personal damage to third parties related to the home are more and more frequent. 

Home liability insurance is the mechanism with which to try to repair the damage caused.

It does not matter if you are the owner of the home or its tenant, in the article you have been able to see some of the risks to which you expose yourself. Lacking good home liability insurance certainly doesn’t seem like a good idea.

Home insurance is not mandatory, but if you appreciate the assets managed, I’m sure you’ll know what to do.

Why don’t you start by leaving us your answer to the question in the comments?

What capital do you have contracted for civil liability in your home insurance? Do you think it is enough?

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?

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