A house or flat is a value in itself, which often has to be worked on for the whole life or for decades to repay loans, which is practically the same. A house or a flat is a kind of our fortress in which we seek shelter and rest, but at the same time it is not an indestructible fortress. There can always be a mishap, such as a fire or a flood, and a thief may be tempted by our property. Therefore, we cannot count on the fact that it will happen somehow, because often our four walls are the only property we have. You need to insure your house or apartment and choose as many options as possible to be able to sleep peacefully.
What is home or home insurance?
It is important to know that the decision to insure a flat or a house is completely voluntary when the house or flat is completely ours. Therefore, it is not our duty, and we have to enter such insurance only when we use loans to buy our four walls.
However, taking into account the fact that both the house and the apartment are worth a lot of money, it is worth protecting your property in the form of good insurance. In the event of a misfortune, it will provide us with compensation for damages, but, equally important, it will provide us with the comfort of life, especially in situations when we leave our premises for a while, e.g. going on vacation.
Flat or house insurance – coverage
Insurance is not of equal quality, and the same applies to insurance companies. It is not uncommon that for the same money we get a larger or smaller scope of insurance depending on the choice of the insurer. Therefore, it is not worth taking out insurance in the first place from which we receive such an offer, even if it is imposed by the bank. In fact, bankers are often affiliated with insurers and can only suggest insurer, but not dictate it. It is always worth checking several offers, comparing insurance scopes, general price lists and price lists of additional insurance options. In addition, you should check how long it takes for a decision to grant compensation, as well as various legal tips and nuances that allow insurance companies to avoid paying claims.
Our expectations regarding insurance should be as high as possible, and in terms of property protection, we can insure:
- only the walls, i.e. only a building without infrastructure, which includes, among others, sewage system, central heating or gas installation;
- permanent property, i.e. the infrastructure of the entire apartment or house, as well as, for example, farm buildings and fences, and even plants that live in the garden;
- movable property, i.e. all household appliances, which is particularly important in the case of increasingly violent storms in our country, during which devices such as TV sets or computers may be damaged. Such insurance also applies to household appliances, which, for example, fail after the manufacturer’s warranty period.
The scope of insurance may differ significantly depending on the insurer. Some companies insure everything without exception, other such exceptions specify or cover them with high requirements, including significant increases in insurance premiums.
If you want to know what is the scope of insurance in a given company, you need to carefully read its offer. There can be no selective reading of the insurance contract here.
The most popular types of insurance concluded in Poland concern:
- protection against the effects of fire;
- protection against the effects of flooding or inundation;
- protection against theft.
You can also enter into extended protection agreements, for example:
- in the event of a tree falling on the house;
- against the effects of a hurricane (now almost mandatory if a homeowner wants to protect their property well);
- insurance against breakage of fragile items.
It should be remembered that with increasing the scope of insurance, the amount of premiums also increases proportionally.
Flat or house insurance – the amount of the premium is the basis for determining the amount of compensation
In addition to the selected scope of compensation, the value of the flat or house has a decisive influence on the amount of insurance premiums.
If we use the popular insurance calculator to determine the amount of our premiums, we will notice a clear change in the amount of premiums depending on the entered value of the house or flat. At the same time, it is worth remembering not to overstate or understate the value of the flat or house, but to insure it according to the market value.
If the home or flat insurance is understated, then in the event of a misfortune we will not be able to count on compensation. In the event of an overvaluation, we will receive higher compensation, but our premiums will be very high.
The method of calculating compensation used in a given company is also important and it can be:
replacement value, allowing you to buy back everything that has been damaged;
actual value taking into account the wear and tear of lost or damaged items.