Unlike other European countries, in Spain there is no obligation to take out home insurance unless the house is mortgaged, as established in the Royal Decree 716/2009. But that it is not mandatory, does not mean that it is not very convenient.
There are many occasions when having a good home insurance can save us from facing a significant expense, above all, if it is about damage to third parties. Now, there are different considerations to take into account before hiring home insurance or before confirming its renewal if we want to make sure that we are paying what we have to do and, more importantly, that we are well covered against any claim. .
A correct assessment
It is necessary that there is a correct assessment of the content and the container and not fall into the underinsured which is when the value of the insured capital is less than the replacement value. It may be tempting to do it so that the premium to be paid is lower but, in the event of a claim, we will be compensated with an amount proportional to the sum insured.
On the other hand, the opposite situation can also occur, the over-insurance, which is when the insured capital is greater than the value of the assets for which said policy has been signed. In this way, we will be paying a premium higher than what would correspond to us and, in addition, in the event of a claim, the company will compensate according to the damage actually caused (it will be based on the value of the damage and not on the value for which it was insured ). In fact, overinsurance is considered an illegal practice by the General Directorate of Insurance and Pension Funds (DGSFP) since it would imply that the insured receives a benefit instead of a mere compensation for the damage suffered.
Damages that usually cover almost all companies are caused by: fire, smoke or explosion, water leaks, meteorological phenomena such as snow or hail, lightning strike, change of locks, electrical damage, mirror breakage , crystals and sanitary devices, among others.
But, in addition to these coverage, It must be taken into account that others can be added as complementary. For example, home assistance (which can be 24 hours), robbery on public roads, pet insurance, etc. It is advisable, therefore, when hiring insurance or reviewing the renewal of the one we already have, take a look at the coverages that are not initially included to see if any can be useful (for example, if we have a dog, highly recommended the aforementioned pet insurance).
Another interesting element to include in our insurance policy may be the legal defense that It covers us if we have to claim the damages that others have caused to our goods. In addition, it includes criminal defense, rights as a landlord or tenant, etc.
This is a basic coverage that cannot be lacking in our home insurance since it is the one that covers damages that we may accidentally cause to third parties (A clear and typical example is the leakage of water that affects the roof of the neighbor below). Assuming the costs for damages of this type can cause serious disturbances in the family economy.
Another aspect to take into account when hiring insurance is that the insurer may impose a grace period, that is, a period during which the policy will not be effective and, therefore, they would not cover any damages that may occur. Better to ask if there is this lack in case we make a change of company, we do not find a time without coverage.
And, in addition to the grace periods, there may be risks excluded from home insurance, such as damages originating from public pipelines or if the home is rented to a third party and has not been communicated to the company. Therefore also It is advisable to confirm with the company the reasons why risks may be excluded so as not to take any surprises.
And, if our home is integrated into a community of owners, before hiring an individual home insurance policy it is convenient check how the community policy is. Typically, they cover damage to the entire building. If so, and the value assigned to the building is correct, we could choose to dispense with the continent coverage.