Home insurance has become a must when it comes to housing. To rent, build or buy a house, you need to be insured. In this article, we provide you with all the information you need to get the right insurance. Find out what you need to know before signing such a contract.
How to choose your home insurance?
Insuring your home is not an issue to be taken lightly. Whether you want a home insurance policy with a monthly payment or a contract with an annual payment, you need to take the time to understand the terms that are offered to you. To make sure you’re making the right choice, check the following items carefully, and match them against the different offers you receive:
- Deductibles: the deductible is the contractual clause that sets the amount that will not be covered by the insurer in case of damage.
- Exclusions of guarantees: these are clauses that exempt the insurance company from compensating its client under certain conditions.
- Included and non-included guarantees: they represent the obligations of reimbursement or benefits that the company is obliged to provide if one of the risks it has undertaken to cover occurs.
- Indemnity limits: an indemnity limit represents the maximum amount that the insurance company undertakes to bear in the event of a claim. In other words, it is the highest amount it will spend to compensate you.
- The methods of compensation. There are two types of compensation: replacement value and deducted value. In a replacement value compensation, the insurance company commits to reimburse you for your property in new condition, regardless of its value at the time of the loss. On the other hand, in a deducted compensation, the company takes into account the obsolescence of the house.
- The waiting period: the waiting period is the period during which you will not receive any compensation, until your insurance becomes effective. During this period, if a water leak damages your home, you will not be reimbursed.
How do I get home insurance?
To purchase home insurance, contact an insurance company, broker, general insurance agent or bank. And if you want to get an idea of the rates and terms that are best for you, contact several different providers. That way, you can easily compare their insurance quotes. Be aware that every insurance application must include an information sheet. This sheet includes information such as rates, coverage, limits of coverage, applicable law and jurisdiction in the event of a dispute. Check out all this information to get the most out of it. Then, sign a single contract and send it back to the insurance company that offers it. After receiving your reply, the company will send you a certificate proving the existence of your insurance contract.
How much does home insurance cost?
Insurance rates vary from one company to another. This is because insurers have the freedom to price their products according to their own characteristics. But in general, the price of a home insurance policy depends on criteria such as the geographical location, the size of the house and the value of the insured goods. The geographical location has an important impact. It allows for example to distinguish between risky areas (insecurity, natural disasters…) and safer areas. The more dangerous the area, the higher the price of the insurance. Then come the characteristics such as the state of the housing, the equipment at risk, and the probable causes of deterioration.
When can you cancel your home insurance?
Since January 1, 2015, it is possible to cancel your home insurance policy at any time. This means that you are free to break your commitment to your insurer whenever you want. Defined in the Hamon law, this measure was taken to free consumers from tacit renewal. It reinforced the Chatel law, which was also enacted to facilitate the termination of contracts. What does this mean in concrete terms? In case of a contract with tacit renewal, your insurance agent must send you an annual information letter including a notice of expiry (Chatel law). But if he fails to do so, you have the right to terminate the contract at any time (Hamon law).
What are the conditions for cancelling such an insurance?
In principle, there are none. If you want to cancel the contract, just choose a new insurer and give them your cancellation request. It is up to them to pass it on to your old provider, to ensure the continuity of your coverage. But be aware that your new insurance contract cannot take effect until the termination of the old one is confirmed. Your cancellation request must be made by registered letter with acknowledgement of receipt. It must include your contact information, the nature of your contract (home contract) and its number. Once the procedure has been validated, your insurer is required to reimburse you for the period of non-coverage within 30 days