No one is immune to accidents that may happen in our lives…
Traditionally, purchasing a flat or a house in Spain is considered a safe option to invest money.
Herewith real estate insurance is highly demanded. Everyone decides for himself whether to insure or not to insure a property, however in our unpredictable life some security is highly appreciated.
Real property insurance is a possibility to protect your property and make yourself safe from financial expenses.
When we possess something, we want to make sure we will preserve our investments, in any event.
Real property insurance enables us to face the future with confidence and provides necessary guarantees and stability.
An object of real property insurance is always a property or a financial interest of a natural person.
Usually it is voluntary. Any real assets belonging to an insurant may be insured.
Real property insurance covers only insured events specified in the policy, and not any event that affects the property.
Insurance payments are always determined individually and are calculated on the grounds of the original insurance amount.
There is no point in overstating the price of an object, as the amount of compensation will not exceed the amount required to restore the object, but will increase the price of the policy.
Insurance amount depends on value of an object and existing limits. The complete list of insured events shall be documented in the real estate insurance contract.
It is possible to insure property inside the real estate object and interior decoration.
In any case, the best value for money and offered conditions are fundamental.
An insurance policy protects from damage and losses and guarantees tranquil life and family wellbeing.
All insured events that may take place and affect a real estate shall be documented in the insurance contract. A client every year pays to the insurance company a specified amount of money under the contract. In case of occurrence of an insured event, the company shall compensate the losses to the client in full.
In case of mortgage, real estate insurance for all fortuitous events is mandatory. Mortgage or pledge of real property implies long-term repayment, that is why the mortgagee bank, reasonably, wants to protect its interests from any events and circumstances that could result in financial losses. Mortgage insurance is designed especially for this purpose; to redistribute the risks related to the long maturity.
If a flat or a house in Spain is thought for investment income, or as a vocational home, it is extremely important to formalise a suitable insurance coverage. Insurance amount shall provide for reparation of the property, which often are below the market price. The amount shall include all household outbuildings, gas pipelines, interior fuel tanks, swimming pools, tennis courts, patios, terraces, walls, gates and fencing.
If real property in Spain forms part of a complex or a storey house, insurance may include communal buildings.
If the real property suffers an accident, such as pipe break, flood, fire, damage of walls, i.e. an insured event occurs, you should address the insurance company which will send a specialist – perito who will assess the damage and establish works necessary to repair it. After that, specialists from reparations or construction organisation will carry out all necessary works.
If there are any especially valuable objects or collections in the house, those may be included in the property description to increase amount of compensation in case of loss or damage; the price of insurance policy will be slightly higher in this case.
An accident may as well affect third party property; that is why apart from fire, flood, hurricanes, etc., real property insurance policy includes third party liability.
Only an insurance will pay for damage caused to your Spanish property – it gives tranquillity, so necessary nowadays.
The real property insurance enables you to restore everything without serious financial expenses and emotional distress.
The most important is to choose a reliable partner among many insurance offers;
In so doing it is more important to take into account reputation of the company then conditions offered: how much you will receive in case of occurrence of an insured event is more important than how you are received in the office.
(Ilf and Petrov)