Insurances are complex products that evolve over time and may vary in a fairly large proportion both from year to year and from one insurance company to another. It is very important to work with a trusted broker who can show you every time (new policy or renewal) the best products as a quality / price ratio for your home insurance.
Household insurance is not an exception to the rule above. You can opt for the cheapest option and wake up that does not cover basic risks such as water pipeline flooding (one of the most common events) or you can opt for an average price but sufficient as coatings from one of the serious companies on the market. The role of the broker appears to advise the customer in choosing the product according to his needs and for the correct presentation of the insurance products. An uninformed or insufficiently informed client becomes definitely, sooner or later, an unhappy customer.
Although in their generic name the word “extra” appears, some of these clauses are extremely important, and even cover risks that occur more frequently than those covered under the general insurance conditions:
As a result of pipe breakage or breakage, it covers the degradation of walls, parquet, household goods, or even electronics and home appliances (the condition is to have insurance also on the goods in the building). The “spot on the ceiling” can be repaired based on this clause, but the insurance company reserves the right to try to recover the money from the careless neighbor from above;
Accidental damage to air conditioning
If the risks in the general conditions are covered, we have another set of risks that we have to take into account precisely because of the technology involved in these installations. Therefore, this clause covers risks arising from faulty repairs, overpressure or implosion, short circuit, overload, overvoltage, manufacturing defects or mounting errors. There are risks that may occur more often than those in the general conditions and it is essential that in case of an offer consider the coverage of this extremely important clause;
If the top neighbor is you and you “damage” the apartment floor bottom it is normal to pay (either directly to the owner or to the insurance company mentioned above). The Civil Liability Clause covers damages to other people, both material and corporal. Without entering into details, civil liability may have several sub-clauses in insurer’s functions, including: Civil liability outside the location, the civil liability of the tenant to the landlord or landlord to the tenant. Read all about it here.
An easily confusing the name, you might think it refers to short circuit, fire or explosion caused by short circuit or other similar risks. In fact, they are covered by the basic conditions. The “electrical phenomenon” clause refers strictly to the risk of overvoltage, which may occur as a result of the disturbances affecting the power distribution network. Although the electric company is responsible for covering these risks, repair and money recovery procedures are complicated and it may take longer, and it may be cheaper and faster to handle an insurance company of this type of damage. Of course, the right to regress applies also here and the insurance company can try to recover the money including from the electric company;
It is perhaps the most interesting clause but also unknown by the “general public”. It covers urgent interventions but involves a very low cost (30-50 euros). What does it mean? Well, of course I’m not the only one who lost his keys or who does not know where I put them at least once a day. Imagine the gravity of your situation when you wake up in front of the door without keys and without remembering where you left them. Some insurance companies also cover the intervention of an emergency locksmith to allow entry if the frog has stuck, you have lost or stolen your keys. Emergency interventions may also include sanitary installations, electrical installations, or sanitary facilities.
In the last few years, home insurance has included a life insurance side, namely accidents insurance. The clause implies a simple insurance covering accident – no matter where they occur – which results in invalidity and death. It is an incomplete clause because it is not a life insurance / accident / health insurance policy but just a supplement to home insurance.
What are these goods? Marble, tile, glass doors or cabinets, glass art objects, chandeliers, lamps, aquariums, stained glass and others. It covers the damage caused by temperature variations as well as those caused by human negligence. Porcelain, portable mirrors, fountains, bulbs, neon lights and lighting are not included. Superficial damage – scratches – are not covered by this clause.
Goods of special value
The risks covered are those in the general conditions; what is different is the nature of the insured goods. Coats, collections of stamps, coins, medals, paintings, objects of artistic, scientific, heritage value are covered here; It is advisable to have an evaluation carried out by a valuation expert prior to the taking over of such goods. So, you will not have problems if there is a damage.
Money and other values
Incredible but yes, money can also be secured. The clause covers – besides money – valuable papers, jewelry, metals and precious stones. This clause must necessarily include a risk inspection prior to taking over the insurance and the goods must be kept in a vault or a minimum weight of 100 kg.
Buildings under construction or renovation
Do you have a home that is under construction and you want to ensure it? No problem, insurance companies also accept situations of this kind. Because the house value increases from one job to another (once you add the air-conditioning system or once you put the tile / tile / parquet), the shelf becomes dynamic with insurance supplements for every change to the building. The same principle applies if the home you want to insure is in an unsatisfactory condition and is undergoing a renovation. The insurers accept the insurance of such a dwelling with the subsequent modifications made.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.