People think about real estate protection after some kind of incident. Statistics show that individuals who purchased housing on their own (for cash or on credit) themselves want to take out voluntary apartment insurance. Rating of insurance companies that provide such a service, terms of service - we will try to cover all these issues in our article.
Short Glossary
A premium is a customer’s contribution to a company in accordance with an insurance contract. Its size is individually calculated in each case.
Compensation is a monetary compensation for damage paid under the contract after the occurrence of the insured event.
Tariff - the contribution rate per unit value of the contract.
Apartment insurance against fire, natural disaster or other risk is usually issued for a period of from a month to one year.
Customers
Mortgage apartment insurance is a prerequisite for obtaining a loan. But among the clients of the companies there are people who independently purchased housing. They realize the value of property, are willing to spend money on additional measures of protection. To obtain a policy you can insure only decoration or property. But many customers include load-bearing walls in the contract. This greatly increases the cost of the service.
Alternative
Voluntary apartment insurance is a costly pleasure. There are not many people who want to immediately spend a large amount on property protection. For such clients insurance is provided, which is paid on receipt along with utilities. Such an innovation is not yet valid in all regions. It is more suitable for people who want to take out voluntary apartment insurance, they look at the rating of insurance companies, but they don’t have time for paperwork.
To participate in the program, it is necessary to indicate the amount of the contribution, to indicate in the receipt the risks that are subject to protection. You can pay for the service at the same time as utilities. This option does not take into account the individual characteristics of real estate. Therefore, it is not worth counting on a large payment when an insured event occurs.
What is to be protected?
- Walls and supporting structures, which make up most of the value of the apartment. The risk is damage to these elements. Even with minor damage, high payouts are provided.
- Finishing: windows, wallpaper, communications, etc. Such protection will help compensate for damage, for example, from flooding.
- Property: from household appliances to jewelry.
- Civil responsibility. The company will pay a refund if you accidentally damaged property of your neighbors.
The amount of payment varies depending on the area in which the facility is located. Underestimating the company’s numbers is not profitable, as in this case the premium is reduced. In order not to make mistakes in calculations, insurers personally come and inspect the facility. Household appliances are insured for 10-20% of the cost. Expensive items are indicated in a separate paragraph. Their value is determined by check.
The risks
- Fire, gas explosion, lightning strike, arson.
- Natural disasters.
- Damage to water from plumbing, sewer, heating systems.
- Actions of third parties.
Features of contracts
The financial ability of the client is the only restriction that applies to apartment insurance. The rating of insurance companies consists of several hundred financial institutions with different service programs. You can use standard service packages, select designers or use an agent to make an individual contract. Risks that are not subject to protection are stipulated by law - damage to an object as a result of a nuclear explosion, military operations, natural corrosion.
Statistics
About 80% of all property insurance contracts are in the collateral segment. Another 10% - transactions concluded with owners of elite real estate. But this segment does not significantly affect the market.
Most potential consumers of the service do not even think about it. There are several reasons for this. Firstly, citizens do not trust this segment. Secondly, no one is lobbying for the law “On Compulsory Property Insurance”, unlike “auto citizens”. It turns out that the car owner represents how much it costs to protect the vehicle, but the landlord does not. But this does not mean that the service is inefficient.
Who needs this?
Experts believe that insurance is worth all property owners. After all, the risk of suffering from a flood, fire, or to harm the property of third parties is always present. Insurers also recommend protecting apartments that are rented even for several months, especially if they do not have reliable locks, fire, burglar alarms, bars on windows, metal doors. Objects located next to pipelines, heat mains, airports, and airways are exposed to even greater risks. The apartment insurance contract even includes protection against the fall of aircraft and their debris. These factors greatly increase the size of the premium. Office owners claim that sometimes the cost of strengthening a security system is less than the cost of a service.
Kinds
Mortgage insurance. Banks oblige customers to draw up such an agreement when buying a home on credit. The document provides for payment in case of loss of work, property rights to property, etc. Contracts are concluded for the entire period of use of borrowed funds.
Apartment insurance . Under such agreements, insurance companies make payments in case of fire, flooding, theft, robbery, natural disaster. The service program is selected individually.
Home insurance is a service similar to the previous one. Any building (its element), which is located in a city or village, is subject to protection.
Title insurance - used only when buying real estate. This transaction protects the interests of owners in case of loss of property rights by court order. For example, if an apartment was bought several years ago, and ownership passed from hand to hand. There is a risk that the transaction of one of the former sellers may be challenged. If the property was purchased from a construction company, there is no need for such a service.
Apartment insurance: rating of insurance companies
The Bank of Russia annually on its website publishes a list of the most profitable companies. This rating is compiled based on indicators such as the amount of premiums paid, the share of contracts concluded, the percentage of refusals, etc. According to official figures, the market leaders in terms of economic indicators are Rosgosstrakh, SOGAZ, Ingosstrakh, and RESO. At the same time, Russians are more likely to trust such companies: Hephaestus, Energogarant, Ugoria.
When choosing a company, you should pay attention to the reviews of relatives, acquaintances, as well as customers on the sites. There were cases when the apartment was insured in two companies, and in the event of an unforeseen situation, one paid the full compensation, and the second even refused to consider the case.
It is very important to study the documents, the requirements for applying, the procedure for calculating the amount of damage, documents confirming the fact of its application. In practice, the more the company requires securities, the more problems there will be in the future with receiving payments.
Flood insurance on receipt
The introduction of this service not only protects the property interests of citizens, but also reduces budget costs for the restoration of damaged property. Everyone decides whether to take part in a public offer. The advantages of such a deal are many. There is no need to spend large amounts on apartment insurance at the first stage, the rating of companies is not necessary to study. To conclude an agreement, you just need to pay the down payment. The amount has already been paid to the EDP, which is distributed to all residents.
The apartment will be considered protected from the first day of next month. That is, if the funds were paid in October, from November 1, insurance of the apartment starts. Customer reviews confirm that this scheme is very convenient. To use the service all the time, you need to pay dues together with the utilities monthly.
The scheme is also called preferential. Companies are developing a single tariff (1.5-2 rubles / sq. M.), Which significantly reduces the cost of the service. The public offer includes standard risks: protection against fire, gas explosion, lightning, natural disasters. Subtenants can also take out apartment insurance. The reviews confirm that you can calculate the size of the contribution yourself. It is enough to multiply the tariff on the total area of housing. For example, for a two-room apartment of 50 square meters. m. at a rate of 1.5 rubles. The contribution amount will be: 1.5 x 50 = 75 rubles. per month.
The amount can be paid in one payment immediately for the whole year. According to the preferential program, unlike the standard one, tariffs rarely change. Testimonials from people confirm that with voluntary insurance, advance payments are not always appropriate. Sometimes customers paid for the service a year in advance, and then tariffs changed downward. That is, saving money did not work.
It is very important to pay for the service on time. If the next installment is missed, the contract is suspended, and the previously transferred money is not returned. If after a few months a person wants to insure housing again, it is enough to start depositing funds again. Debt for the period of downtime is not charged. But the client will not receive compensation in the event of an insured event. Compensation is paid within seven days after settlements.