Is your property covered by homeowners insurance?
The housing market is at an all-time high. Home prices are on the rise, and demand for homes is growing. You see this as a great opportunity. After all, it’s likely that home prices will continue to rise for some time. You decide to take the plunge and invest in a home. That way, you can rent it out or perhaps resell it at a profit in the future.
But what if your property burns down? Would you lose your entire investment? You would, if you don’t have building insurance. But what should you look out for when purchasing building insurance? And how can you get the best premium? Alpina explains it all for you.
Building Insurance Coverage
Of course, you want to protect your investment as best as possible. That’s why it’s a good idea to take out building insurance for your property. This will insure your building against various types of damage. We’ve listed the coverages for you below.
Fire Coverage
This coverage protects your property against damage caused by fire. It also covers any resulting smoke damage. However, flames must have been involved. Otherwise, you will not receive compensation for the smoke damage.
Comprehensive Hazard Coverage (Plus)
With the comprehensive hazard coverage (plus), you receive a wide range of other coverages in addition to fire coverage. These include explosions, damage caused by burglary, water damage, and vandalism.
Comprehensive Coverage
With comprehensive coverage, you’ll be reimbursed for all types of damage—unless the policy terms explicitly state that a particular type of damage is not covered. Therefore, always review your insurance policy terms to find out what you are and aren’t covered for.
New Construction Value
The amount of your premium is always calculated based on the new construction value of your property. This is often considered equivalent to the market value. Have you just purchased a property? If so, you can report the purchase price to your insurer. Your property will then be insured for that amount.
Be sure to have your property appraised every few years. It’s possible that your property has increased in value. If you don’t have the property reappraised, you may be underinsured. In that case, you’ll have to pay the entire amount of the damage that exceeds the insured amount out of your own pocket. For a home, this can easily run into the thousands or even tens of thousands of euros.
The opposite is true if the value of your property decreases. In that case, you have insured your property for too much. This means you’re paying too much in premiums for coverage that you’ll never receive in full. That’s because the insurer is not allowed to pay out more than the value of your property. Therefore, be sure to check the current value of your property regularly.
Get your home insurance through Alpina: simple and affordable
Are you considering purchasing building insurance for your property? Then take out a policy today through Alpina! We offer the right coverage for every investor in the real estate industry—always at the most competitive rates. Do you still have any doubts or questions about our property insurance? Feel free to contact our customer service team. They’re more than happy to assist you and answer all your questions.
Never Underinsured
Create Your Own Package
A wide selection
We compare all insurance companies for you, saving you time
Help from our experts
Can't figure it out? Our experts are always ready to help you
We'd be happy to help you right away
Having trouble figuring it out online? We're happy to help you via chat or WhatsApp.
We are open Monday through Friday from 8:00 a.m. to 6:00 p.m.