Thinking of taking home insurance? In this post, we tell you about the risks assessed by the insurer.
Home insurance is a contract that covers several risks, directly or indirectly, related to your home. To best insure your home and cover as many risks as possible, the insurer will have to assess them accurately, sometimes through a questionnaire that you will have to complete.
Assessment of the Characteristics of the Property
Several factors will be taken into account by the insurer when assessing the characteristics of the property to be insured.
Type of Property
The guarantees of a home insurance contract depend on several criteria, and the type of property to be insured is one among them. It could be:
– Home insurance for new or recent homes
– Home insurance for a company apartment
– Home insurance under construction
– Insurance for a furnished rental
Surface Area of the Property
The number of rooms and the surface area of your home will be taken into account in the risk assessment by your insurer.
Use of the Property
Real estate other than the principal residence may be covered by home insurance. For example, small lodges and cabins inside the yard.
Assessment of the Subscriber’s Profile
The subscription of a home insurance contract is not mandatory for everyone: the quality of the subscriber, his background, as well as the composition of the household to be insured must be taken into account by the insurer.
The purchase of home insurance is only mandatory for the tenant and the co-owner. The insurance obligation incumbent on the tenant is called “rental risk coverage” and covers his civil liability only towards the owner. On the other hand, for the co-owner, this obligation is broader; whether or not he is an occupant: he must guarantee his civil liability for all the damages he causes to third party victims. Although not mandatory, it is strongly recommended for other profiles such as:
– Tenant home insurance
– Homeowner’s home insurance
– Non-occupancy homeowner insurance
– Student home insurance
– Roommate insurance
To assess its risks, the insurer will ask you, most often in its questionnaire or risk declaration form, what is your history in terms of insurance coverage and claims experience: have you ever been insured, has your contract been terminated, and if so, what are the causes? What has been your claims experience over the past five years? Etc. These are the types of questions that may be asked to you that will allow the insurer to determine the level of coverage and premium.
Composition of the Household
In the insurer’s questionnaire, you will have to report all members living in your dwelling, whether on a regular or occasional basis. In this way, all members of your family (partner, spouse, children, etc.), the people you are hosting, but also your housemaid, for example, can be insured. Ask your insurer for more information, as the scope of coverage may differ depending on the home insurance policies.
Assessment of the Value of the Movable and Immovable Assets to Be Insured
Valuing your personal and real estate assets is essential for the insurer to adjust the premium to be paid and compensate you based on the capital to be insured in the event of a claim. If you are looking for a reliable insurer in Rockledge, Mimbs & Associates Insurance have over 80 years of experience in providing Homeowners Insurance, Auto Insurance, Business Insurance, Life And Supplemental Insurance, Boat Insurance and more.
Choosing your home insurance policy
The price of your home insurance should not be the only factor that guides your choice. It is essential to review your policy and make sure you are well covered.
Choose Your Insurer
You can take out a home insurance policy with several parties: a general insurance agent, an insurance company, a bank or a broker. Contact several of them so that you can compare the different offers.
Possible Coverages Under the Home Insurance Contract
The home insurance policy contains many coverages to protect you from damage to your property or third parties.
Rental Risk Guarantee
As a tenant, you must at least take out “rental risks” insurance to compensate the owner for damage caused to his property in the event of a fire, water damage or explosion.
Multi-Risk Residential Contract
Depending on the options chosen, the multi-risk home policy can cover housing, but also your personal belongings and your civil liability towards third parties, and consists of basic (mandatory) or optional coverages. Since the formulas differ from one insurer to another, take the time to study each offer.
Civil Liability Coverage
Civil liability is generally the first component of the comprehensive home insurance policy. It is used to protect you against material or physical damage that you may cause to others.
Property Damage Coverage
Property damage insurance covers real estate (house, apartment, outbuildings, garage, etc.) and movable property (furniture and miscellaneous objects) owned by the insured and located at the address of the insured risk. They constitute the second component of the multi-risk housing. The main risks covered are listed below.
– Water damage insurance
– Freeze insurance
– Fire insurance
– Theft insurance
Property Damage Coverage
Various possible covers:
– Replacement cost guarantee;
– Insurance against technological disasters;
– Household appliances insurance;
– Tablet insurance;
– Defense and recourse guarantee;
– Attack and bombings.
Remember to review your home insurance policy for coverage exclusions, which can be in footnotes or endnotes of your contract.
The insurance contribution is the amount you will have to pay to your insurer for the benefits it provides to you. This rate is not set by law and may vary from one insurer to another. Feel free to request several quotes!