It can be considered as the only type of compulsory insurance in one’s home and covers damage caused by explosions and fires. Home outbreak and fire insurance includes a policy, or the payment of an annual fee that covers the expenses relating to the above claims, avoiding losing the assets in your home or the property itself, guaranteeing coverage of any such costs. Simultaneously with the signing of a loan, the bank requires the stipulation of this insurance, under penalty of possible refusal to disburse the capital.
Primarily considered a voluntary insurance and stipulated only by those who, during the opening of the mortgage, wished to be more calm in the face of this eventuality, now the home outbreak and fire insurance has become mandatory . Let’s see together the details on the characteristics of this type of mandatory home policy, the coverage of claims, the method of payment of the premium, the cost and compensation in the event of a fire and, why not, who to contact.
Home outbreak and fire insurance: WHAT IS IT?
Home outbreak and fire insurance is the only insurance policy required by law , that is the insurance which, when stipulating the loan, must be signed by the borrower even before the loan is disbursed. Without the stipulation of this type of policy, the banking institution providing the capital to cover the purchase cost of the property can also decide not to grant the same loan.
All other forms of home insurance , home mortgage insurance or other types of policies that allow the person to be protected from the risk of insolvency of the loan, death or loss of employment are not mandatory: the home outbreak insurance policy is, allowing to cover the costs of the loss of the property and its contents if there are episodes of explosions, explosions, fires inside the house.
Home outbreak and fire insurance: WHAT DOES IT COVER IN DETAIL?
As mentioned above, home outbreak and fire insurance covers the costs deriving from the refurbishment of the property following an explosion or fire that can cause damage to property, domestic systems, the loss of precious objects, furnishings, breakdowns of the water or electrical system. By signing this type of insurance policy, the company takes the place of the user in paying the costs , based on what was signed in the contract and the maximums established in the same policy. In fact, it has already been said that some policies compensate the value of the claims; others only the sum up to a maximum ceiling.
To better understand and get a clearer idea of the general characteristics of home outbreak insurance, a table is proposed below which summarizes the cases that can be verified within the home and covered in the costs with the subscription of this type. of the policy, which, as noted, does not reimburse the costs of imprudent attitudes and which could cause danger:
Home fire insurance: HOW MUCH DOES IT COST?
The cost of the home outbreak fire insurance policy is calculated based on the ISC parameter – Synthetic Cost Index – and is around 30-60 euros per month . upon signing the loan.
House outbreak and fire insurance: PREMIUM PAYMENT
The premium for home outbreak insurance, which constitutes the cost of the policy, is calculated on the basis of the APR – Annual Effective Global Rate – and can be paid by the borrower in two ways, according to their current spending needs:
payment of the total amount in a single solution ;
annual installment .
Home insurance outbreak of fire and early repayment of the loan: REIMBURSEMENT OF THE PREMIUM
In the event that the subscription of your home outbreak insurance was stipulated at the same time as the loan and you intend to pay it off early – with subrogation of the loan or renegotiation of the same – the residual insurance premium, or the one not used according to the amortization plan, must be returned . The sum will be used to pay a new premium to the new insurance with which you will take out a new mortgage.
Home loan outbreak of fire insurance: CHOICE AND DELIVERY
House outbreak and fire insurance is mandatory and is offered directly by the bank which grants the loan and which materially pays the capital for the purchase of the property. It is the same banking institution that offers the fire outbreak insurance with which it has an agreement, however allowing the borrower to refuse and choose another insurance policy of the same type .
Home insurance outbreak of fire: COMPENSATION
Compensation for damages means that, in the event of the verification of fires, explosions in one’s home and loss of assets, in part or completely inside the home or the entire property itself, the insurance company has the duty to indemnify the costs of rebuilding the property with a sum equal to the total value of the lost goods or of the domestic systems that have suffered damage, after verifying the causes of the damage .
It is important to remember that, when signing the fire outbreak policy, it is necessary to evaluate the clause on the overall total to be compensated in the event of a claim . Some banking institutions in fact compensate the sum equal to the value of the loss on the property , while others establish a ceiling, or a maximum amount within which it is no longer possible to compensate the damage. This means that if you have a damage of 600,000 euros due to a fire and the insurance company with which you have taken out the policy has a maximum compensation limit of 500,000 euros, the reimbursement will not go beyond this amount.
PLEASE NOTE : please note that some banks do not consider the construction value of the house but the commercial value which, being higher, allows you to request an annual premium of a higher amount than other forms of insurance.
Home insurance outbreak of fire: CARE and INATTENTION
It is important to underline that the signing of a home outbreak insurance policy allows you to cover the expenses deriving from the damage caused by these events, but in the compensation phase and calculation of the sum to be reimbursed, equal to the value of the loss of the goods or the property. o based on a maximum ceiling established on the policy contract, the cause of the explosion and fire is verified , which does not cover neglect, inattention or attitudes that could create danger in your home.
Just to understand : the home outbreak insurance policy covers damage caused by fire and smoke but does not bear the costs for failure to extinguish a cigarette or poor or no maintenance of the boiler that generated the fire or explosion.
Home outbreak and fire insurance: WHO TO CONTACT?
Below is a table containing the links of the major insurance companies that offer the type of home outbreak and fire insurance , in order to direct you to the policy that best suits the needs of your home:
House outbreak and fire insurance: compulsory policy, what it covers, costs and compensation and more can be seen in other articles here.