Not all Home Insurances are equal. The market offers many possibilities.
For this reason, it is important to have good advice to determine the best insurance according to your needs.
Choosing the adequate coverage is essential to manage the possible claims properly and to avoid the Proportional Rule.
Multi-risk Home Insurance
This is a fully comprehensive insurance policy that insures your home, its contents and your third party liability.
The multi-risk home Insurance includes a whole coverage of theft, fire, home accidents such us water damage from flooding, neighbors complaints, civil liability to third parties, etc.
This Insurace is composed by:
Those moveable assets, ie, not attached to the building structure are included in content. They are not considered as part of the construction.
It is basically furniture, electronics, clothing and other goods. In some goods of high economic value, such as jewelry or pictures, it is needed an individualized and detailed statement of them.
Food, groceries, TV antenna and supplies are also included.
Buildings insurance covers the main structure of your home Those elements that are fixed and/or are part of the construction are considered Building:
The following adherence parts are also considered Building:
Therefore, content coverages are mainly:
Underinsurance occurs when the insured amount is less than the value of the item.
In the case of Underinsurance, when a claim occurs, the compensation shall be calculated by multiplying the value of the damage by the ratio of the amount insured and the value of the item. This is known as Proportionally Rule.
Underinsurance is completely legal. In fact, it is very common. However, it should be known in advance in order not to not generate expectation in the payment of the premium. The proportional rule will be applied. In the event of total loss, the Insurance Company will compensate the insurer with the amount insured, which in this case is less than the value of the item insured.