The intensive development of the fire insurance industry occurred in the 17th century, after the Great Fire of London (1666), and there were other similar events. Flood insurance appeared a little later and initially implied payment of funds when the water level in the rivers rose.
Today, both areas are essentially included in one insurance package, although you can create an individual program if you wish. Thanks to this approach, a person will be protected from various damage to property due to the fault of third parties.
General information
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Insurance services can be divided into several types, taking into account various characteristics.
Depending on the risks, there are the following types of home insurance:
- personal property;
- type of liability to third parties.
Insurance contracts specify a mandatory list of housing elements, in case of damage to which the insurance company will be held liable. These may include household goods, interior decoration, etc.
If the contract provides for liability measures to third parties, then the insurance company will have to compensate them for damage if for some reason their property is damaged.
Some insurers offer their clients to enter into an agreement that provides for various risks of property damage, as well as damage from third parties.
Insurance conditions in different insurance companies
Sberbank offers the optimal balance between security and insurance costs. This will provide peace of mind for the condition of the property. Fire protection, as well as insurance of an apartment against flooding of neighbors, is included in the “Home Protection” policy. In addition to the risks described, the program also includes other common factors: theft, liability to neighbors, etc.
Video shows how to choose an insurance company:
The bank offers several insurance options, which depend on the rating of companies when insuring an apartment; therefore, they differ in the amount of payments and contributions:
- The cost of the policy is 1750 rubles. This provides for payment of 200 thousand for damage to interior decoration, 150 thousand for movable property and 100 thousand for citizen liability;
- Price 2250 rubles. The amount of payments for interior decoration is 250 thousand, for movable property insurance in Sberbank, as in other banks - 200 thousand and liability 150 thousand;
- Cost 4950 rubles. Payments for interior decoration reach up to 600 thousand, for movable property 400 thousand and civil liability 400 thousand;
- The price is 6,750 rubles - the most expensive policy, which provides 1 million for interior decoration, 500 thousand for movable property and 500 thousand for liability to neighbors.
Prices are indicated for payment for the entire period of the contract, which is concluded for 1 year.
The SOGAZ company provides insurance services against flooding, fire and illegal actions of third parties in the basic insurance package.
The company offers several insurance tariff plans:
- Cost 1,000 rubles – maximum payment 200 thousand rubles;
- Price 2,000 rubles – payments up to 350 thousand and 50 thousand for civil liability;
- For 3,000 rubles – payments reach 550 thousand and 50 for liability to neighbors;
- A policy worth 5 thousand rubles allows you to receive payments of up to 900 thousand and 100 thousand for citizen liability;
- Price 7,000 rubles – payments up to 1.2 million and 200 thousand in civil liability.
Objects
The main objects of insurance include real estate (apartments, mortgaged housing, private houses). Each of the objects has its own nuances, which should be paid attention not only by policyholders, but also by insurers.
Apartment
This type of apartment insurance is relevant for old buildings where worn-out communications are installed. This property is most often exposed to various risks.
You should not overlook the insurance of apartments located in new buildings. Home insurance is especially relevant after expensive repairs.
If desired, you can take out civil liability insurance. This approach will allow you to insure liability to neighbors in a residential building.
A private house
Insurance of private houses does not have any special distinguishing features from apartment insurance, but there are still certain nuances:
- it is necessary to take into account not only the house itself, but also the buildings located next to it (bathhouse, garage, etc.);
- for the insurance procedure, you will need to collect the necessary papers, taking into account a number of details;
- You can also insure an unfinished house that you own and is at the stage of completion of construction.
Private houses are usually insured against fires. The presence of a fire alarm, bars on the windows of the house, high-quality materials for construction and finishing insurance will help you save on insurance. Insuring a house built from timber will be cheaper than insuring a residential house built from brick.
What factors affect the cost of insurance?
There are many factors that influence the final price of a policy. The following stand out:
- the total number of risks added to the contract;
- features of the building's operation;
- the presence of alarms and protective devices in the house;
- the cost of building materials used for repairs;
- service life of the structure;
- current condition of real estate;
- availability of a mortgage loan from the policyholder;
- location of the object (region, distance from a large city).
Article on the topic: Features of real estate insurance in Sberbank Insurance
Number of risks included in the policy
The main factor influencing the cost of insurance. You can insure your home against one or more risks. As each one is added, the cost of home insurance increases. You can call or ask the insurer's employees how much it costs to insure a private house or cottage with a certain number of possible insured events.
The most popular of them:
- fire;
- flood;
- theft;
- impact of natural disasters;
- illegal actions of third parties;
- intentional damage to property.
Features of home operation
A vague concept that all insurers take into account when determining the cost of insurance.
Insured housing can be used in different ways:
- seasonal or year-round accommodation;
- number of permanent residents;
- use of one or another dangerous equipment in the house (generator, boiler, etc.).
Presence of protective systems
The cost of fire insurance tends to not only increase, but also decrease. If the homeowners are interested in its well-being, then the insurer will reduce the rate if the building has:
- burglar alarm;
- smoke sensors, presence of gas in the air.
In this case, a gas explosion and fire are unlikely, or there is a high probability that the emergency situation will be quickly neutralized by promptly arriving services. If the structure is built from high-quality building materials and structures that are resistant to fire, then the insurance company will also reduce the rate.
Price of building materials
The use of high-quality, proven, fire-resistant materials in the construction of a house is an opportunity to insure the building against fire at a minimum rate. If the building is constructed in such a way that if a local fire occurs, the fire will not spread to adjacent premises (or this process will occur extremely slowly), the insurer’s expert will definitely take this into account during the assessment.
Lifetime of the building
The duration of operation of the house directly affects the final cost of insuring the building against fire, destruction and other insured events. No one will insure dilapidated and unsafe houses. You can insure strong, proven structures that are guaranteed to last for decades. The decision is made by an expert who inspects the building and evaluates its characteristics.
Law
Real estate insurance is regulated by a number of legislative acts:
- Federal Law No. 102 “On Mortgage”, when it comes to mortgaged housing (Articles 29, 31, 32).
- Federal Law No. 4015-1 “On the organization of insurance business” - contains the procedure for regulating legal relations between the insurer and the policyholder.
- Civil Code of the Russian Federation - articles 929-930, 940, 943.
Home insurance
Residential property insurance is one of the effective ways to reduce the risks that may occur as a result of damage or loss of real estate. No one can predict in advance the occurrence of emergency situations, which include fire, floods and other troubles associated with damage or loss of housing.
Home insurance, which has distinctive features depending on the type and condition, will help reduce risks and costs.
Voluntary
Insurance is a voluntary procedure, therefore, the owners of residential premises themselves have the right to decide whether to purchase an insurance policy or not. When choosing an insurance package, you should take into account the expected risks and available financial capabilities.
The most profitable options are package offers, which provide for the possibility of including various situations in insurance cases that could lead to losses.
Read about receiving subsidies for young families to purchase housing. How does the program to provide housing for young families work? See here.
With a mortgage
Taking out mortgage insurance is mandatory. Using this method, lenders try to minimize possible risks in case something happens to the home and the mortgage loan still has to be repaid.
You should not regard home insurance for a mortgage as an additional expense. In practice, lenders approve applications without insurance at a fairly high interest rate, which is not beneficial for the borrower.
No one can guarantee that nothing will happen to the property or the borrower during the term of the mortgage agreement.
From fire and flooding
It is necessary to understand that the policyholder will interpret any controversial issues in the event of flooding or fire in the home in favor of its interests. Before signing a contract, you need to be aware of what your home may suffer as a result of a fire.
There are three options here:
- from exposure to direct fire;
- there was interaction with combustion products;
- the fire occurred as a result of the actions of third parties when extinguishing the fire.
The wording and mention of these three options when concluding a contract is very important. It is they who will determine what compensation a citizen is entitled to.
As for flooding, the neighbors through whose fault the incident occurred are required to pay for the losses incurred. But what to do if there is no one to demand compensation for losses from? In this case, an insurance contract will come to the rescue, providing for conditions for compensation, even if the owner of the apartment himself is to blame for the incident. For example, a pipe burst in a house and flooded the neighbors. It will not be the homeowner himself who will compensate them for their losses, but the insurance company.
It is important to correctly spell out the terms of the contract, taking into account any details and subtleties.
Home insurance example
Let's give an example of calculating annual insurance payments for two different households.
Example No. 1. The object of insurance is a brick cottage. The estimated cost of the building is 12,500,000 rubles.
Equipment: steel doors, window bars, fireplace, water heaters and electric heating system.
Cottage use: regular, owner lives.
Insurance package: a full range of risks.
In this case, the insurance rate will be approximately 0.7-0.8% and the annual home insurance payment will be approximately 87,500-100,000 rubles.
Example No. 2. A house made of timber is subject to insurance. Estimated cost: 5,000,000 rubles.
Equipment: oak doors, water heater, stove, no bars or shutters on the windows.
Use of the house: tenants live, the building is often empty.
Insurance package: fire.
Under these conditions, the house will be insured at a rate of 0.8-1% and the annual payment will be equal to 40-50,000 rubles.
Programs and tariffs
Insurance programs are presented in the form of classic products that provide individual sets of risks for each object. Typical real estate is insured with “out-of-the-box” programs, which already define the conditions, amounts and risks.
Why such programs are convenient:
- relatively low cost;
- fixed amounts of compensation are determined in advance;
- there is no need to describe the property in advance;
- Insurance can be purchased online on the insurer's website.
Classic programs are less in demand. Their advantage lies in improved service and wider risk coverage.
The cost of the policy is calculated individually and depends on the number of included objects of insurance.
Sberbank offer
Sberbank offers various types of property insurance policies. If any option occurs, the injured subject will receive monetary compensation if his home or property is damaged as a result of the occurrence of an insured event provided for in the contract.
Insurance programs are divided into:
- mandatory – regarding mortgage housing;
- voluntary – at the choice of the property owner.
Currently, the bank operates three insurance programs:
- from fire and flooding;
- "protection" of the house;
- insurance of land against flooding.
Types of insurance policies for real estate
The Russian insurance market offers to insure residential buildings, suburban areas and cottages against fire and other risks, using various programs to choose from.
Related article: Features of title insurance when purchasing real estate
The following types of insurance for country houses are distinguished:
- Title. The program is relevant for property owners who have purchased property, but are afraid that in the future the completed transaction will be considered illegal for one reason or another (presence of encumbrance, errors in documentation, etc.).
- Mortgage. A must-have product from lending institutions. If you do not insure your mortgaged home against fire and other risks, the bank will not issue a loan.
- From loss of property. Insurers will refuse to issue such insurance if the structure is recognized as unsafe or is frankly dilapidated. The policy provides owners with protection against destruction of the building associated with poor-quality construction and repair work, and cheap metal structures used.
- Civil liability. If the policyholder unintentionally causes damage to third parties through his actions (for example, by flooding them), the insurance company will pay compensation to the victims.
- During repairs. If major renovation work is being carried out on a house, then you can insure the structure (the entire building, the property located in it), and individual structural elements. Also, insurance is often issued for new engineering equipment and finishing that appeared after repair work.
Important! Unregistered houses and buildings cannot be insured. This is a legal requirement. Large insurance organizations will not consider such proposals from potential clients.
Registration procedure
Registration of a policy implies the following actions:
- determination of possible risks against which housing will be insured;
- choosing the optimal type of insurance;
- determining the insurance company where the policy will be issued;
- collecting the required package of papers;
- studying the terms of the contract by both parties to the transaction;
- signing the main agreement;
- payment by the citizen is required amount.
Conclusion of an agreement
The signed agreement comes into force on the day following the day the insurance premium is paid.
The contract must include:
- information about the parties, indicating their data and details;
- list of insured property and insured events;
- the amount of the insured amount;
- procedure for payment of insurance compensation;
- cases when payments are not due;
- liability of the parties;
- contract time.
All terms of the contract must not contradict the law. Interested parties carefully read the terms and conditions before signing the papers, paying special attention to insured events.
Required documents
From the papers you will need to prepare:
- passport;
- confirmation of ownership rights to the insured property;
- technical plan from BTI;
- real estate valuation report.
These papers are considered basic. Different insurance companies have the right to require different documentation.
A sample property insurance contract is here.
Who evaluates the building and how?
When insurance company employees evaluate a building, they try to take into account as few factors as possible in order to reduce the insured amount in case of payment. For example, what is taken into account is not the real value of the house on the real estate market, but the so-called restoration cost.
When assessing the value of real estate the following will not be taken into account:
- the cost of the land on which the house is built;
- convenience and prestige of the location.
When insuring a relatively inexpensive building, it will be sufficient if the annex to the contract describes the structure and indicates the materials, design features and main elements, including an assessment of the quality of the finish. If an expensive building based on a unique design is subject to insurance, then details about the features of its design and technical equipment, as well as photographs, must be attached to the contract.
When a home owner provides documentary reports on his costs for the construction and finishing of a building, the insurance company is obliged to take these factors into account when calculating the amount of insurance. In the absence of such evidence of costs, the cost will be calculated based on the size of the house.
For how long?
Most often, housing is insured for a period of one calendar year. Some people issue poles for the period during which the owner will not be in the home. For example, during vacation. Short-term insurance is not profitable, so it is advisable to take out a policy for a long period.
Find out where to start buying a resale apartment. What are the bank interest rates on mortgages for secondary housing? Information here.
How to get a loan for secondary housing? Details in this article.
Price
The exact cost of the insurance policy will depend on various factors:
- number of insured events;
- expiration date of the plisa;
- maximum payment amounts;
- cost of the insurance object;
- condition of housing;
- interest rate when it comes to mortgage insurance.
The size of the policy is calculated individually in each case.
Home insurance is primarily issued in the interests of the owner. It is he who must decide on the objects that will be insured and the choice of the insurance company. If the choice is made, when concluding a transaction, you must carefully read the terms of the contract, paying attention to all the nuances and pitfalls.
