People tend to think Insurance covers everything. This of course is not the case and especially in the case of home Insurance policies. The policy will typically have exclusions, limits, and deductibles.
Some of the myths of cover and misconceptions are outlined below so you do not fall in any pitfalls with any claim.
Common Home Insurance Myths
Home insurance is optional
This in most cases is true but if you have a mortgage on the property the bank may require homeowners to cover their loan and rebuild of the building in event of a total loss on the property. It is also recommended as a way to protect what will likely be your biggest asset and all your belongings.
Home insurance only covers the home’s rebuild
Although this is not a common misconception it is worth pointing out that Home insurance also covers many other things such as contents, liability, and additional living expenses in case of displacement from the home.
Acts of god are not covered in Spain
This is thankfully not true! Acts of good such as earthquakes and major floods are covered under a government fund called the Consorcio. Each policy on renewal pays a very small percent into the fund and this goes towards any claim which is considered an act of god. Online insurance companies do not tend to help the client when these claims occur, but brokers and insurance agents will always manage this type of claim for you.
Home Insurance Myths related to security and your valuable items
My valuable items are insured without naming them on the policy
This is a myth since if items are over a certain amount then they should be named on the policy. The amount varies but I would recommend any valauble item over 3000 euros you should name on the policy.
Below is list of valuable items that you should be naming on your policy.
My valuable items do not need to be in a safe
If the value of the item is low, which I would consider to be under 3000 euros as mentioned previously, then this is fine but any item which you value highly needs to go into a safe. If you do not have a safe always check that this is accepted by the insurer.
I did not put my alarm on but will still be covered for theft
I am afraid if you have stated you have an alarm this will mean it always has to be connected when you leave the property. In some instances if allowed by the insurer you can state no alarm even if you do have one. This is recommended if you rent out the property.
Other Home Insurance Myths
Family members Medical expenses are covered in case of injury
Under a home policy if your guests or anyone visiting you gets hurt you will be covered for any liability. However, it will not cover you or a family member in case they get injured while at home, only third parties not related to you.
You are covered for accidental damage
Accidental damage protects against unintentional one-off incidents and is not standard cover- it has to be specifically requested. It is important to check in your policy if it is included.
If I am away from the property for an extended period I do not have to inform my insurer
Your policy will have a time frame of occupancy. If your policy states up to 30 days and you are away for over this period you will not have cover in event of a claim. Always check your policy and call your broker if you need to extend the period of days you will be away.
Home insurance premiums do not increase
Premiums can change over time, due to factors such as inflation, changes in the home’s value, and updates to the policy coverage. All policies that we offer are new for old, therefore with the annual increase in the capital amounts insured this will slightly increase the price of the policy.