Apartment insurance may seem like an unnecessary additional monthly expense, especially if you’ve never experienced issues like burglary, fire, or flooding. It is impossible to be prepared for this, but insurance for apartment building owners will become a lifeline that will protect against financial losses in the event of unforeseen circumstances.
Renters insurance is a type mostly purchased by tenants to cover damage to their personal property or theft. This does not cover damage to the building. There are different companies out there offering renters insurance. You can go through a review of the best Phoenix renters insurance companies to choose the best. In this article, we will dwell more on apartment insurance.
Who Should Consider Home Insurance?
• Landlords (renters) who rent out housing.
• Those who use the property seasonally, not all year round.
• Owners of apartments without fire and burglar alarms, security bars on the windows, and reliable front doors.
• Those whose housing is located near pipelines or heating mains, as well as airports and air routes.
What Property Can Be Insured?
Apartment, House, Cottage
Structural elements (walls, partitions, etc.), interior and exterior decoration (floor and wall coverings, windows, doors, etc.), equipment (plumbing, kitchen, heating, anything relevant), engineering communications, elements of landscape design are subject to insurance.
Movable Property
Furniture and interior items, household appliances and electrical appliances, decorative elements, personal belongings.
At the same time, the insurance system is very flexible, and you can choose both individual objects in the room or a specific room or everything.
Civil Liability
This term means that the insurance company assumes the obligation to compensate for financial damage if you, as a homeowner, unintentionally harm the home, health, or property of third parties. In simple words: if a fire, flood, or other force majeure happens through no fault of yours and this harms your neighbors, the insurance company will pay them compensation.
What Cases Can You Insure Your Property Against?
The following risks are taken into account:
• Fire, smoke, and losses incurred as a result of extinguishing a fire.
• Natural disasters: storm, earthquake, subsidence, landslide, lightning, hurricane, hail, etc.
• Failures of water supply, sewerage or heating systems, the explosion of household gas or technological gas equipment.
• Illegal actions of third parties: arson, burglary, robbery, damage to property in the process.
• Mechanical damage: the collision of a vehicle, falling of a post, tree, construction crane, etc.
It is important to clarify here that there is such a thing as “gross negligence.” If property damage is due to one’s indiscretion – for example, they forgot to turn off the stove, water in the tap, or iron, then the insurance company does not pay compensation. Also, damage caused by fungus and mold, rodents, and other pests is not eligible for compensation, as they could arise due to the homeowners’ negligence.
What else should you pay attention to? There are several exceptions to movable property that are not insured. These include jewelry, antiques, cash, furs, valuable paintings, etc.
The fact is that to insure, for example, expensive paintings or jewelry, you first need to confirm their authenticity and value with the help of an appropriate examination and also store them correctly in a safe. Since adhering to these rules often costs more than annual insurance, few people stick to it. Hence the list of exceptions.
It is also essential to follow the basic rules: to report an insured event immediately after learning about it and not touch anything before the arrival of specialists, keeping the original appearance. Write a statement and draw up an act confirmed by the competent authority, depending on each specific case.
Types of Insurance Contracts
How to insure an apartment? Companies offer two types of property insurance – classic and express insurance. Each method has its disadvantages and advantages.
Classic Insurance or Comprehensive
To conclude such an agreement, you need to fill out an application. Then an insurance representative comes to the apartment, inspects the housing, gets acquainted with the documents, including the apartment’s expert assessment (it is displayed in the purchase and sale agreement), and stipulates all the details. In this case, photos are taken, and a description of the property is drawn up.
The more detailed and qualitatively the contract is drawn up, the fewer problems will arise later. In it, among other things, the name and details of the insurance company, the insurance object, the list of insured events, current risks and exceptions from them, the insured amount, the tariff and payment, the duration of the contract, the rights and obligations of the parties, etc. are recorded.
Express Insurance
Express insurance option is performed without property inspection and cost estimation. The policy is issued in 15-20 minutes. Just a passport and personal signature are enough.
This method is much cheaper than comprehensive insurance. It can also be issued for a short period, for example, for 1-3 months. The express method is mainly used by owners of inexpensive and small apartments or those who are planning a vacation or business trip.
