Real estate insurance question and answer

Q: Why insure your property?
A: Real estate insurance helps you protect yourself from many unpleasant surprises and unexpected costs. Nevertheless, not all types of insurance are required for each.

Q: What types of insurance?
Insurance loss of ownership (title insurance)
Covers the possible risks of loss of ownership as a result of errors in the privatization or a change of ownership of the property.
Purchasing an apartment, where privatization was carried out many years ago, and ownership passed several times, can be more risky because you own property may be contested by one of the former owners or sellers.
You can protect yourself against possible claims by third parties, to insure the risk of loss of property rights.
At the same time, if your flat is purchased from the developer, then there is no such risk and such a type of insurance is likely to be considered redundant.

Insurance of property loss (destruction of the building)
Covers the risks associated with complete or partial destruction of the building. For example, this type of insurance required by many banks in the case of mortgage apartment or mortgage lending. Nevertheless, this type of insurance is less popular among Kyiv, as many are difficult to imagine the likelihood of complete or partial destruction of the building.

Insurance damage repair
Covers damage caused to furnish an apartment from third persons or natural phenomena.
Condition of some flats and pipes in most homes of Kyiv not always perfect. Poor repair work and neglect of residents often lead to unexpected deterioration finishing flat.
Therefore, insurance decoration is very popular among home owners. We especially recommend you to purchase such insurance to everyone who removes or delivers the property. Moreover, the cost of such insurance is only from 0.1% to 1% of the insurable amount.

Covers the cost of damages to third parties as a result of the use of real estate.
This type of insurance will be useful to owners of apartments, neighbors who have made an expensive repair, and where restoration work in the case of water leakage or any troubles can lead to large expenditures.
If you rent out your apartment, then this type of insurance will benefit you and your tenant.

Q: What documents are needed in order to obtain insurance payment?
A: For every payment you will need insurance. When it comes to insurance, damage to finish, you'll likely need an act of the operating organization - Jeka, testifying to the damage done and specifying its cause.
When it comes to liability insurance, apart from the act of the operating organization, will need a statement of the injured party.

Q: How do I choose an insurance company?
A: We advise to heed the recommendations of friends who have experience in insurance payments from any specific companies.
In our practice, was a case where the apartment was insured by two companies and one insurance company paid the full amount of insurance, while others refused to even consider the insurance case.
It is therefore necessary to carefully study what the requirements for the application of the insured event, as well as what is the procedure for determining the level of damage and what documents must be submitted for payment.
If the company requires the provision of a very long list of documents, independent examination to assess damage and the like, it is likely to be also very complicate entitlement. The smaller the list of required documents needed to obtain payment, so you will be easier in the future to communicate with the company.

Q: Are there differences in the design of insurance in different regions of Ukraine?
A: The difference, of course. First of all, in different regions of different risks. Of course, in different regions and different areas of the dominant estate (for example, somewhere in the factory workshops and mines, and somewhere in motels and hotels). In addition, the value of the property also differs, with substantially. In assessing the replacement value of the object is taken into account the cost of works, which has a regional peculiarity. For example, the cost of repairing similar technical parameters of real estate in Kiev and Kiev can be uneven. There is a difference also in the insurance of residential and commercial real estate. Often the cost of insurance commercial property cost to the client for a smaller rate than insurance, residential apartments. This is due perhaps to the different areas of real estate to cover different risks, with a degree of probability of occurrence of the insured event due to a more careful treatment of the property owner to his property and, of course, an integrated approach to large clients.

Q: How closely associated with the mortgage insurance?
A: Close does not happen. Most real estate contracts for insurance related to mortgages. Bank, giving money to a borrower puts mandatory conditions - design object in the mortgage insurance and real estate collateral (in the case of physical persons - also credit life insurance). We would like customers to be credited for many years, a responsible attitude to the extension of the insurance contract on the 2 nd, 3rd and subsequent years. Often, they argue on the principle of "I'll manage the credit already given, not taken away before." Insurance or real estate property, not associated with a mortgage - until, alas, for clients, is not widespread in Ukraine.

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