Do I Need Insurance?

Insurance protects property against natural disasters and other eventualities. Unfortunately, insurance, regardless of the type, isn’t really appreciated until it’s needed. Therefore, the decision about having property insurance, health insurance, car insurance, maternity insurance, etc. depends on each person’s risk tolerance.

What Does Insurance Protect Against?

There are different types of policies offering various coverage. Some of the most important coverages are related to:

·  The internal and/or external structure of the property

·  The personal belongings inside the property

·  Damage to third parties (accidents that happen inside the property)

·  Damage to other properties (in the case of condominiums or townhouses)

What Type of Insurance Do I Need?

There are many types of insurance and not all owners need the same type of policy and coverage. Therefore, it’s important to determine the right policy and coverage, as well as restrictions and exclusions, to cover possible risks.

The three most important elements to consider when deciding which type of policy and coverage are best for your situation include:

Use of the property. Is the property for personal use, vacation rental, or investment?

Civil liability. Protects against legal action and medical expenses in the event someone gets injured on your property.

Protection against damage to other properties. Personal belongings and the property’s interior (i.e., floor, walls, ceilings, electrical installations, appliances, or air conditioning).

Other factors to consider in selecting the right insurance and coverage are:

Location (for the purposes of flood insurance)

· Flood insurance is required by the government and lenders when the property is in a flood zone.

· Flood insurance for property located in a hurricane-prone area is usually an optional policy.

Type of property

· House and townhouse. Structural protection, flooding, accidents and hurricanes.

· Condominiums. Buildings often have a master policy that covers the structure and common areas against floods and accidents, but not against the loss or damage of personal belongings and the property’s interior (i.e., floor, walls, ceilings, electrical installations, appliances, or air conditioning).

· Number of properties. If you own multiple properties, you have the option of using an “umbrella” insurance policy. Umbrella policies allow you to reduce the cost of insurance. Talk to an insurance agent for more information and details.

Ways to Reduce the Cost of your Insurance Policy

1. Increase your deductible.  The deductible is the amount you pay before your insurance covers a claim. As an owner, you can save money if you increase your insurance deductible. This is one of the most common ways of keeping insurance costs low. Remember that a high deductible is a great way to save money if you have the money to pay the deductible when necessary.

2. Install an effective alarm system. Insurance companies usually give discounts if you have an alarm system.

3. Minimize the number of claims. Try to pay off minor accidents on your own because frequent claims are key factors that insurance companies consider when setting higher insurance premiums.

IMPORTANT! Remember to hire the services of an insurance agent when purchasing your property! They are experts in guiding you toward the right coverage for your situation.