What to look out for when you buy House insurance in Greece!
Written by Stavros Tsichlis, Ιnsurance Αdvisor at www.insurance-greece.com
The latest earthquake in Kos reminded us all of a daunting and intimidating fact: Greece in No. 1 in earthquake activity in Europe and No.5 globally!
House insurance in Greece is not a luxury but rather a necessity. With the right home insurance coverage, you’ll feel comfortable knowing that, in the event of a disaster, your property is protected.
Below are 6 points to take into consideration when choosing your coverage:
1) The insurance firm
This is the most crucial decision to make! Remember that you are signing up for a potential claim that can reach many thousands of Euros in order to re-built your house.
What is the company’s financial record? What is the agreed timeframe for a claim to be handled? What is the solvency margin of the firm you are about to sign up to? You insurance advisor should be able to answer the above questions.
This is much more relevant today as the Bank of Greece will revoke the licence of many insurance firms in the future due to their poor financial performance.
2) Don’t confuse what you paid for your house with rebuilding costs:
The land under your house isn’t at risk from theft, windstorm, fire and the other perils covered in your house insurance policy. So don’t include its value in deciding how much homeowner’s insurance to buy. If you do, you will pay a higher premium than you should. Keep in mind that the commercial / sale value is different from the construction cost / insured value.
On the other hand make sure you include communal areas such as your pool, garage, patios etc. Your insurance agent should be able to advise you of the right amount of coverage.
Do not add the land value in the house insurance plan as it will increase your premium!
3) Content cover in holiday houses:
Many insurers will not accept content cover if the house is left unoccupied over a certain number of days. Make sure this is clear in your policy. Also make sure what the policy excludes, e.g. jewellery, bank cheques, watches , cash, etc.
4) Legal action:
If you claim an amount resulting from someone else’s negligence, bad construction / material or deliberate action you may be allowing the insurer to take legal action against them in order to claim their money back! Ask your agent when you receive your compensation check.
5) Deductibles – excess amounts:
Low premiums are always attractive. That said, you should have a look at your policy and clarify your participation in case of a claim. There is no point paying for a policy that is full of excess amounts and will never compensate you. Some insurers offer ”no-excess plans”, ask your insurance advisor.
Tip: Always ask for the policy’s excess amount (co-pay) as it will have a big impact in case of a claim!
6) Multiple-policy discount:
Connect your credit card to your policy and you might be eligible for a small discount. You can also ask for a ”multiple-policy discount”. Having your car, house, health and life insurance with ONE insurance firm can save you money.
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