Insurance is a financial product increasingly used by us and this is a good indication of the maturity of our Financial Education. In this context, one of the types of insurance that are becoming popular is Home Insurance.
We’ve talked about other types of insurance, such as insurance cars, life insurance, and insurance for mobile phones, giving some tips and suggestions on how to purchase these products. In general, the recommendations are the same, but there are always some differences.
The first recommendation is common for any type of insurance: search, search, and search. It takes work, but it is worth it, the price differences between the different home insurance can reach up to 40%!
Remember that when doing research, you need to pay close attention to the terms of the contract. For example, check the deductible of each insurance and also the amount of indemnity in the event of a claim. In addition, carefully analyze the coverage of the home insurance contract, that is, which claims will be covered: flooding, theft, assault, etc.
That is, home insurance can be really cheaper just because it offers limited coverage and very low indemnity amounts. This is not necessarily a bad thing, but you should analyze and decide which is the best “service package” for you.
As a reference, we list below some of the most frequently asked questions about home insurance.
1- What are the home insurance coverage?
The main coverage covers damage caused by fires, lightning strikes, and an explosion caused by the gas used in domestic use (when not generated in insured locations) and its consequences, such as collapse, the impossibility of protection or removal of salvage, expenses with fire fighting, rescue and debris from the site.
However, there may be other coverages, such as, for example, that indemnify damages resulting from fires caused by an explosion of appliances or substances of any nature (not included in the main cover), or due to other causes such as earthquake, burned in the countryside, windstorm, vehicle impact, aircraft crash, electrical damage, among others.
2- What are covered risks and excluded risks?
Covered risks are those foreseen and described in each of the coverages, which will have eventual losses resulting from their occurrence covered by the insurance.
Excluded risks are those whose resulting losses will not be indemnified by insurance unless specific coverage is contracted. As an example, we have:
1. Volcanic eruption, flood or another upheaval in nature;
2. Internal or external war, civil unrest, rebellion, insurrection, etc .;
3. Loss of profits and emerging damages;
4. Fires in rural areas;
5. Theft or theft.
3- What are assets not covered by insurance?
They are those assets, specified in the policy, for which the insurer will not indemnify the losses, even if they come from covered risks. In general, they are the following:
- Stones, precious metals, works and objects of art in general, goods of great value that are easily destroyed or damaged by fire, jewelry, rarities, etc .;
- Manuscripts, plans, projects, paper money, stamps, checks, credit papers, minted coins, accounting books, etc .;
- Third-party goods, except when such goods are under the responsibility of the insured for repairs or maintenance and provided that there are records (documents) proving, through invoices or service order, their entry and existence at the insured location.
4- What is a franchise?
It is the amount or percentage, expressed in the policy, that represents the part of the loss that must be borne by the insured person per claim. Thus, if the amount of the loss for a particular claim does not exceed the deductible, the insurer will not indemnify the insured.