You can’t say that insurance is as old as humanity itself, but we can certainly say that the oldest insurance company in Slovakia is more than a hundred years old.
Most likely, everyone who owns a property has it insured. A roof over our heads as one of the primary securities of human beings is definitely something hard to acquire, and we do not want to lose it. Yet, it is pretty easy to be lost.
Considering a Change
Increasingly frequent dramatic weather fluctuations, also caused by us – humans, and their impact are also reflected in our houses and apartment conditions. Today, winds of 60 km per hour and more are not peculiar, nor are the downpours that can destroy our homes with mud. The consequences are uncomfortable and even more without insurance.
Therefore, as we take care of ourselves and our health, we should also pay attention to our housing. Equal attention should be paid to its insurance.
As our health condition changes over time, so does the condition of our dwellings. We see doctors for routine check-ups. Well, most of us do. Still, we are less aware that property insurance should also be subjected to regular inspection by experts at least once every 5 years or at every major change, for example, after a renovation. Many of us do so, but some people still do not even know that it is necessary.
Insurance Policy
Many homeowners regularly pay the same insurance for years. Some even had contracts from the times of socialism. They do not need to change anything. They are satisfied because when they took it out and the insured value was in hundreds of thousands of Slovak crowns, the insurance was cheap, later, affordable even in euros, it seemed reasonable, so they slept well – mainly because they were insured.
However, if there was an insured event – a storm, a fire, a flood (today, unfortunately, also in places where such events did not occur) and their property was damaged, then there was definitely a problem.
They reported the insured event to the insurance company, and the premium from their insurance policy was exactly the same as the values set in their policy – low. The usual reaction is simple. We’re looking for the culprit. And that’s always the insurance company in the eyes of the client because they sent little money.
If you have an old insurance policy at home, check how the insurance amounts are set.
How to
Can you imagine the value of your property and its facilities? There are still many people who pay attention only to the content of the household – cabinets, tables, chairs, living room sets, bedroom equipment, etc. It is indeed household items that create a sense of home. Still, without walls, windows, and roofs, they are basically useless. In an insured event, only the value of the household contents would be paid. Therefore you should ask directly in the insurance company and request a change in the typically wrong pre-set contract. Having the right policy is very important, especially today. We usually start to move when a disaster happens somewhere in the neighborhood.
The prices of building materials have risen tremendously in the last two years since the start of the pandemic. This means that the value of our dwellings is different today than it was a few years ago. Insurance companies react positively to this, and the insurance amounts are based on current material prices. We should know what and to what amount we have our dwelling insured. What is the sum insured of the property, the unmovable parts such as walls, apartment, or garage?
Just imagine if a house or apartment disappeared from the surface, for example, due to an earthquake or fire. How much would it cost us to get the same housing?
The insurance market is diverse and responds quickly to the stimuli that are currently happening around us.
This way, you can think about setting the sum insured. Of course, the premium corresponds to the value of the property. If we cannot identify with the premium amount, it seems too high to us, we automatically reject it because we believe that accidents will avoid us and we don’t need insurance. In that case, we should have enough money – the home’s value.
Price First
Often we want a lot for a little money. But it doesn’t work. Property insurance is not where we should be saving. It is better not to get any insurance than a cheap one that doesn’t cover the value of a house, apartment, or garage. Many people prefer to leave their property underinsured to achieve low premiums, meaning that the insured value does not correspond to the property’s actual value. The only goal is to make sure they don’t pay too much.
Fortunately, insurance companies count on this human phenomenon, and their calculators are set up very realistically – they calculate the sum insured based on the property area, which can no longer be reduced. It is also possible to increase the insurance value above the amount offered by the calculator – at your discretion.
Supplemental Insurance
In addition to property and household insurance, you can select various supplemental insurances, such as liability from the possession of the real estate, the liability of household members for damage to health and things, cyber risks, insurance of art objects, jewelry, etc.
Liability for damage, in particular, is a convenient choice to compensate for damage caused to a third party. For example, if we live on the 10th floor and the sealing under the bathtub breaks, and we do not even notice, the neighbors below may have an emergency. This insurance shall then cover the damage caused to, for example, a neighbor or neighbors. Insurance companies deal with the risk of liability for damages in the entire European Union. So, if you are on holiday in any EU country and you cause damage to your health or things, it is possible to pay compensation from your home insurance policy or apartment. Of course, if you have such a risk negotiated in the contract.
The insurance market is diverse and responds quickly to the stimuli that are currently happening around us.
Important:
- If you have an old insurance policy at home, check how the insurance amounts are set.
- If possible, make your idea of the value to be covered by the contract.
- If you can’t do it yourself, consult it.
- If you already have insurance, let it be set in real numbers. Otherwise, you can look forward to an unpleasant reality.
Text: Mirka Grochalová, photo: www.stock.adobe.com
