Nowadays, virtually all car owners have some form of insurance. It seems the most natural thing to do. On the other hand, there are still few real estate owners who adopt so-called real estate insurance, which is growing in Brazil, but is still far from having the same popularity as the automaker.
By still being a type of insurance little used, the doubts are very common. After all, is it worth having real estate insurance? Next, we try to explain what it is and when it is worth hiring.
The main difference of real estate insurance for auto insurance
The main difference of real estate insurance for auto insurance, for example, is the immense amount of coverage arrangements. This is the crucial point that you should be aware of when considering making one for your residence.
The most basic, which cost about $ 50 in some insurers, only covers fires, lightning and explosions. The most complete ones cover theft, hydraulic and electrical problems, broken glass, natural disasters, among others, and cost more than $ 1000.00 per month.
The coverage, added to the location, the type and the size of the property is that will define how much will cost the monthly installment. A property in an area of risk, for example, will have much more expensive monthly installment in insurance against natural disasters. Likewise, the theft insurance of an apartment in a gated community will be cheaper than that of a home in the most dangerous neighborhood.
The key to getting real estate insurance that meets your needs is not to hire coverage that is beyond what you need, or below what is necessary. Both of these mistakes are very common and can cause frustrations in the property owner.
The greater the coverage, the more so-called “accessory items” are present in the contract. These items include services such as key chains, electricians, painters, firefighters, janitorial, computer technical assistance and water tank cleaning. It is not uncommon for people to hire self-service when they could use the insurance or, on the other hand, to hire accessory items that they will never use.
Likewise, it is important to be careful not to hire coverage below your need and expectation. Even theft insurance, for example, has a number of modalities. Some include only high value objects, others any kind of object that can be stolen. The tip is not that all the items in your residence are insured; careful reading of the contract is imperative.
Do I have to have this insurance?
The property is, for the most part, its most valuable asset. However much theft and damage to property are less common than in cars, the damage is much greater. If your budget allows you to take out real estate insurance, do so. Especially if you live in areas with high incidence of robberies, fires or natural disasters, for example.
However, as said before, the important thing is to be aware of not being frustrated with coverage below what you expect nor above what you need, which will reflect unnecessary spending. Since you have a number of different coverage options, it is important to be patient and research hard before choosing the best insurance to hire.