Protecting your home is essential for a peaceful and worry-free life. Whether it’s a house or an apartment, the risks to which your home is exposed are numerous and not always predictable. Theft, fires, floods, and earthquakes are just a few of the events that can cause significant damage. This damage can affect both the building’s structure and the belongings inside.
In this context, home insurance becomes a necessity as it provides financial protection and long-term security. In the following lines, we will explore the importance of home insurance. We will discuss the available types of policies, home insurance costs, how to choose the right insurance, and what damages can be covered.
The importance of home insurance
Home insurance is an essential element in protecting one of the most valuable investments you make in life: your home. It not only provides safety against unforeseen events but also helps you recover financial losses due to damage, protecting both you and your family.
In a world where accidents, natural disasters, or thefts can occur without warning, home insurance is a vital tool to reduce risks.
Home insurance policies can vary depending on the coverages offered and the types of events they protect against, but they all have a common goal: to protect your belongings from unforeseen events. Without proper insurance, damages caused by fires, floods, thefts, or earthquakes can financially affect you in the long run.
Types of available policies
There are several types of home insurance policies, each with different characteristics and coverages. Generally, they fall into two major categories: mandatory home insurance and optional home insurance.
Mandatory PAD insurance – home insurance cost
This policy is mandatory for all individuals who own a home in Romania. PAD covers three major risks of natural disasters: earthquakes, floods, and landslides. PAD insurance has a fixed coverage value, and the annual cost is determined based on the type of home.
Type A Home – A building with a reinforced concrete, metal, or wood structure, or with exterior walls made of stone, fired brick, or other thermally and/or chemically treated materials, for which the insured amount is 20,000 EUR, with an annual cost of 130 lei.
Type B Home – A building with exterior walls made of unfired bricks or any other materials not subjected to thermal and/or chemical treatment, for which the insured amount is 10,000 EUR, with an annual cost of 50 lei.
Optional home insurance
Optional insurance is not legally required but can be purchased to cover additional risks not included in the mandatory policy.
These risks include damage caused by fires, thefts, vandalism, floods, landslides, and even events such as storms or terrorism.
Optional insurance can also cover the belongings inside the home, such as furniture, electronics, jewelry, and other valuable items. To calculate the cost of optional home insurance, you can contact a Destine broker here.
Customized home insurance
These policies offer extended coverage against a broader range of risks. They can be customized according to your needs and allow you to choose the risks you want to cover. You can protect your personal belongings, as well as visitors’ valuables if their items are destroyed in an insured event.
These customized policies not only cover the home but also its annexes (garage, gazebo, storage shed, etc.).
Another advantage of customized insurance is that it may offer technical assistance for repairs and interventions. Additionally, this type of insurance can include civil liability clauses for family members.
How to choose a policy
Choosing a home insurance policy may seem like a complicated process, but with a few essential pieces of information, the decision can become much simpler. Here are some steps to help you choose the best policy for you.
Determine your needs
Before signing up for insurance, evaluate your own needs. If you live in an area with a high risk of earthquakes, floods, or other natural phenomena, optional insurance may be necessary. Also, consider the value of your belongings. If you have valuable items in your home, such as jewelry, expensive electronics, or artwork, optional insurance can help protect them.
Compare price offers
The Romanian insurance market offers a wide range of policies, so it is important to compare multiple offers. This is not only to find the best coverage but also the best home insurance price. Check what risks are covered, what amounts are allocated for each type of damage, and what costs are involved. Also, don’t forget to ask about any exclusions in the policy.
Check the reputation of the insurance company
Home insurance is a long-term commitment, and in the event of an accident or unforeseen event, you want to be sure that you will receive the correct compensation. Check the reputation of the company by reading reviews and talking to other clients to ensure they are trustworthy.
Review the terms and conditions of the policy
Read the terms and conditions of the policy carefully before signing any documents. Make sure you understand all the details, including the procedures for paying compensation and the legal terms, such as the validity period of the policy and the renewal conditions.
Examples of covered damages
Home insurance can cover a wide range of damages depending on the type of policy chosen. Here are a few examples of commonly covered damages:
Fires and explosions
This category includes damage caused by fires, as well as explosions, whether caused by electrical shorts, negligence, or other events. Insurance policies cover both structural damage to the home and the loss of belongings inside.
Thefts and vandalism
In the case of theft or burglary, insurance can cover material losses and damages caused by burglars. Also, damage caused by vandalism, such as broken windows, destroyed doors, or other intentional acts of destruction, are often included.
Floods
Floods are a major risk in many areas, and home insurance can cover damages caused by rising water levels. This is especially important if your home is in a high-risk area. Coverage may include damage caused by water entering the home through the roof, hardware, and even the loss of belongings.
Earthquakes
Optional insurance policies usually include earthquake risk, protecting you from structural damage caused by tectonic movements. This damage can include cracks in walls, ceiling collapses, and other structural damage.
Landslides and extreme natural phenomena
In some areas, landslides or extreme phenomena such as violent storms or falling trees can damage homes. Insurance policies may include these risks, protecting you from significant financial losses.
Optional home insurance is an essential protective measure. It helps you keep your home and belongings safe in the face of unpredictable events. Choosing the right insurance policy requires careful evaluation of your needs. At the same time, it is important to compare different offers available on the market.
Regardless of the type of policy chosen, make sure it provides the necessary protection. Another important aspect is being able to rely on the insurance company when needed. To ensure you choose the right policy for your home, contact a Destine broker. They will help you with both the home insurance cost and the best choice for your needs.