Insurance policies
July 7, 2022
Key concepts to understand how insurance works:
- Policy: contract.
- Policyholder: the person who takes out the policy.
- Building: construction elements and structure of a home.
- Contents: furniture, belongings and everything in the home.
- Premium: amount of money paid.
- Excess: amount paid by the insured when a loss occurs. It makes the policy cheaper, but the insured will always have to pay a part of it.
- Loss: damage or loss that the contracted company must indemnify the policyholder.
- Indemnity: amount that the insurer gives to the beneficiary of the contract.
Type of home insurance:
Generally, there are 3 home insurance policies:
Damage policy:
This is the most basic policy. It is mandatory to have this policy in order to obtain a mortgage loan.
If there is an accident and the home is destroyed, the insurance will cover the cost, although if the amount indebted in the bank is less than the amount assumed by the insurer, the remaining amount will be paid by the insured.
Multi-risk policy:
This protects the building and the contents of the house. Some of the risks covered are usually:
Basic coverage: fire, explosion…
Complementary coverages: fire extinguishing, salvage, demolition…
Additional coverages:
- Damage due to meteorological phenomena
- Breakage of glass (up to the limit agreed in the contract).
- Theft
- Vandalism
- Electrical damage: power surges, short circuits, current disturbances…
- Water damage
- Civil Liability: covers third party claims for damages and/or losses.
- Legal defense: damages caused by third parties.
As you can see, there is a great diversity of modalities in this type of insurance. Coverage can be contracted independently, depending on the flexibility of the policy. The type of home (rental, vacation, first home…) also determines the offer in multi-risk home insurance.
Loan repayment policy:
It is a life insurance linked to a loan, mortgage or personal. It guarantees an amount equivalent to the debt that is reduced over the years and as the loan is amortized. In case of death or permanent disability, the family can assume the remaining amount.
In Espígul we have a wide variety of properties at your disposal. Visit https://www.espigul.com/ to find what best suits your needs. Do not hesitate to contact us for any questions or to arrange a visit.
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