Property Insurance

 

Property insurance and immovable property insurance is a type of coverage that nearly everyone should have. None of us are fully safe when it comes to property and immovable property insurance because we cannot predict or fully protect ourselves against natural disasters, thefts, fires, etc., and we are all exposed to these risks.

 

· Main types of property insurance contracts

 

– Fire and additional risks insurance protects property against sudden, unforeseen, and accidental loss, damage, or destruction caused by fire, earthquake, floods, lightning, storms, etc.

– Theft insurance provides compensation for items listed in the insurance contract that are stolen.

– Crop insurance protects all types of crops against hail and natural risks such as storms, floods, frost, or heavy rainfall.

– Livestock insurance is a contract that insures livestock against diseases and accidents.

– Business interruption insurance covers expenses resulting from the interruption of business activity due to fire or additional risks, guaranteeing net profit as well as fixed costs.

 

· How to assess the suitability of the offered contract?

 

To take out an insurance contract, you should contact an insurance intermediary (agent or broker) or an employee of the insurance company. In this case, you should:

– Request an explanation of the main features of the contract for the products offered by the insurance company;

– Provide information about your insurance needs;

– Present your financial situation;

– Provide information about the level of risk you are willing to assume and the goals you wish to achieve.

This allows the insurance intermediary to help identify the individual’s needs and find the product that best fits these needs.

The insurance company and intermediaries must provide every interested person, before signing the property insurance contract, with all necessary information about the type of insurance. This information is also available on the company’s official website and must be:

– Complete
– Accurate
– Clear
– Easily accessible

Consult the online pages of insurance companies that offer property insurance or ask the company’s employee or intermediary to get the information you need. The insurance company also collects information from you through a form to determine risk levels and the insurance premium.

 

· When is the property insurance contract considered concluded?

 

The property insurance contract is considered concluded and effective when:

– The insurance policy is signed by both parties, and
– The premium or first installment is paid according to the contract provisions.

Make sure to obtain an original copy of the policy and verify that the document contains no corrections. The insurance policy is the document proving that you have valid property insurance.

 

· Premium and insurance amount

 

The insurance amount is determined in the contract and represents the maximum compensation in case of the insured event. It is recommended to insure the property at the full replacement value, including costs necessary to restore the property to its previous condition. If the insured amount significantly exceeds the actual value, both the insurer and insured may request a reduction, and the premium will be adjusted accordingly. If the insured amount is lower than the property value, compensation will be calculated using an underinsurance coefficient, defined as the ratio of the insured amount to the property value.

Premiums can be paid in different ways depending on the contract:

– In installments;
– For the full period.

Payment can be made via bank transfer and/or cash. Proof of payment can be a bank document or a collection receipt issued by the insurance company with a description of the payment made.

 

· Claim request

 

The insured reports the damage and requests compensation for losses or damages to the insured property within the legal period specified in the contract. The claim procedure is carried out according to the form published on the insurance company’s official website and should include at least the following documents:

– Completed claim form with details of the event;
– Confirmation and/or decision from competent state authorities regarding the cause(s) of the damage;
– Original insurance policy for the damaged property, accompanied by the contract and insurance questionnaire;
– Identity card of the claimant;
– Authorization from the legal owner if the claimant is a third party;
– Photos/videos of the damaged property and any items claimed for compensation;
– Certificate of ownership of the damaged property;
– Sketches, project, or technical documentation of the damaged property or equipment;
– Detailed list of damaged items;
– Witness statements from the scene;
– Damage assessment by licensed evaluators;
– Summary report of the event and damage evaluation.