The "right" property insurance

07.12.2009 15:31
If you decide to insure the apartment or house, but do not know the nuances of this type of insurance - be careful because it can not insure that you are interested. On the issue of insuring homes or apartments may be some positive responses. This is due to the fact that the insurance of the apartment can be considered separately several objects, which will extend insurance coverage. These objects include the design and finish. Besides, you can still be considered separately and liability insurance for the landlord for property damage to third parties.

Insurance Design

This is the most common format for insurance. The conclusion of such agreements require the banks with reference to Art. 8 of the Law of Ukraine "On mortgage". Primary right to recover in this case gets the pot. However, this type of insurance are the least protected the rights of the client. Under such an agreement will cover only structural elements, with the cost of insurance will be up to 0.35% of property value. Market rates fluctuate in the range 0,25 - 0,3%, while a large sum insured (value of the assets of 10 million hryvnia) rate can be significantly lower.

Typically, when a client with the question of insurance apartment offers exactly this type of insurance. Its much easier to sell because of the lower tariff. However, the client does not understand the subtleties that, in case of flooding of the insurance company does not compensate for damaged wallpaper or Venetian plaster, flooring, suspended ceilings, etc. It's not the same design elements of the room. The choice of such conditions of insurance if they wish to protect the apartment as a whole (trim) can be a serious mistake.

Another error of client with whom we have encountered - a requirement of insurers to issue an insurance contract together with construction finishing. Arguments about the following - the sum insured is determined by the assessment which was carried out in a place where repairs are made. Ie insurance amount includes the cost of repairs. It seems to be logic in the argument is, but there is no reason to. First, a comprehensive insurance (decoration and design) would immediately increase the tariff (to 0,45-0,5%). And second, most importantly, finish and design will be insured with a single franchise. And now closer to the figures, say the subject of mortgage and rent is 700,000 USD. And finish 100,000 USD. and is included in the estimated value of the apartment. Standard situation - a bit flooded neighbors. Damaged a few square meters of wallpaper and even a bit of flooring. Deductible under such contracts are usually set at 1%, ie amount to 7000 UAH. (700000h1%). The average loss for finishing is about 9000 UAH. Ie for reimbursement will be 2000, while payments were reduced to normal wear. On hand will be available a minimum or nothing at all and still pay a premium for the tariff.

The solution may be to use a complex contract, where tariff will be calculated separately for construction and finishing, and the franchise will also be considered separately for each object of insurance. On the figures it will be as follows: 600000h0, 28% = 1680 USD. (Insurance payment for finishing), 100000h0, 45% = 450 USD. The total insurance premium - 2130 UAH. (1680 450), instead of 3150 UAH. (700000h0, 45%). Franchise in the second case - by design - 6000 UAH. (600000h1%) and the finish - 1000 UAH. (100000h1%). Ie in our case, a conditional 9000 UAH. damage will not be deducted 7000 UAH. and only 1000 USD.

The proposed option is preferable from an economic and practical point of view for the client, except that this form of contract is hardly ever used in banking insurance. Outputs in such a case could be two: to insure only the structure of the minimum tariff or insist on the separation of insured amounts and deductibles in the insurance contract.

Insurance finish

This insurance includes insurance of only one finish. It is more prevalent in the market of insurance. The cost of such insurance will be up to 0,5%, the market prices fluctuate in the range of 0,32-0,4%. The question here arises with the definition of the sum insured, ie, the cost of your repairs. Options for insurance may be a few: full value insurance and so-called "Express" program. In the opinion of finance-insurance, it is preferable to enter into a contract for the full cost.

"Express" program provides comprehensive insurance design, finishes, third-party liability and personal property, but within certain limits. For example, the limit of liability insurance design - 50000 USD., Insurance finishes - UAH 10000., Liability insurance - 10000 USD. and the insurance of movables - 5000 UAH. In this case, the room is secured, without inspection and prices are significantly inflated. Typically, customers voiced no percentage and absolute number in UAH, which is not very large because of the small limits of liability. Its advantages in the Ekpresse ", even if the overpayment is, but there is one drawback. It also adjusts reimbursement for depreciation, so "old" repair, taking into account the small limit may not cover reimbursement. For example, the amount of damage - 15000 USD., The degree of wear - 70% deductible - 500 UAH. Reimbursement: 10000 - (15000h60%) -500 = 500 UAH. Therefore, such programs are not very suitable for "older" rooms, where repair was done long ago.

In the insurance for the full cost of the problem also remains wear, but the refund will be receiving is not a limit, and the amount of damages. The main drawback of this option would be a correct assessment generated estimates. This can be negotiated assessment or appraiser's report. When assessing the main contract does not make a mistake with the cost of repairs. Otherwise, if paid, the insurer may raise the question with an appraiser who will evaluate the damage. And if the price determined by the appraiser, will be more contract, the insurance company will be the basis for the pro rata payment. Ie client can nedopoluchit significant part of compensation. To this was not necessary to require the insurer in fixing the value of the contractual agreement as valid. This eliminates the possibility of proportional payment.

You can also find an appraiser (the cost of services 600 - 1000 UAH.) So that it has fixed the cost of finishing. In this case, its number should be reflected in the contract, as the actual cost to avoid the pro rata liability of the insurer.

Insurance of liability for harm caused to third parties

This type of insurance protects your property interests in the event of injury to third parties. For example, you accidentally flooded the neighborhood, resulting in a fire caused damage to the balcony of the neighbors, etc. Rates for this type of insurance varies in the range 1 - 1,5%, the sum insured client chooses. Basis for payment in this case will be entered in the court decision or motivated by a claim from a third party recognized by the insurance company.

Recommendation of Finance, Insurance

If you live in an apartment building, then it would be advisable to insure the finish and third party liability. Not so often happens the destruction of structures such homes. In this case, destruction is usually associated with any extraordinary events - the explosion of gas, etc. (Technical defects of the insurance company will not cover). In these cases the question of compensation would be decided centrally, and the sum of insurance compensation will be reduced by the amount of compensation.

The private home has the same meaning, and to insure the design and finish, but the responsibility is not very relevant. The house is usually separated from their neighbors house territory. Therefore, the risks are minimal.

In any case, need a balanced approach. Assess your risks and to present them to the insurer, but do not start a conversation with what you need to insure your property.

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