Rising Prices for Multi-Risk Insurance: How EXS Can Help You Save

In 2022, insurance companies paid out more than 300 million euros to policyholders for claims under comprehensive home insurance policies. A series of adverse weather events were the main cause of this significant increase in claims.

Against the backdrop of an increasing number of severe weather events, it is essential to understand the coverage, policies, and factors that influence premiums for multi-risk insurance.

In this article, we explore how environmental disasters can affect the cost of insurance premiums, but we also highlight the importance of being protected against these events. We also share six tips for finding the most suitable comprehensive insurance policy and explain how EXS can help you save money and find financially advantageous solutions.

The Impact of Bad Weather on the Cost of Multi-Risk Claims

The increase in multi-risk insurance claims in Portugal is heavily influenced by adverse weather conditions. Recently, storms and floods have caused significant damage to properties, triggering a high number of claims related to this line of insurance. This situation has placed substantial pressure on insurers to cover these high costs, resulting in an inevitable increase in insurance premiums.

In 2022, the country was particularly hard hit by extreme weather events, including floods that caused considerable damage to many homes. More than 50% of the reported claims These policies covered water damage, in addition to fires and other risks covered under standard policies.

For this reason, over the past year, insurance companies have seen a significant increase in claims costs. In total, insurance companies paid 312.3 million euros to policyholders, which inevitably led to an increase in premiums for this type of insurance of approximately 14,17%.

This growing trend highlights the vulnerability of multi-risk policies to adverse weather conditions, underscoring the need for insurers to review and adapt existing insurance policies to ensure effective and adequate coverage in situations of increasing risk.

What are the essential coverages to include in your comprehensive insurance policy in the event of natural disasters?

Understanding the coverage offered by comprehensive home insurance It is essential to ensure that you are choosing the most appropriate coverage for your home. Given these adverse weather conditions, it is essential to be aware of all possible forms of protection and to consider purchasing additional coverage to safeguard your property and your belongings.

Learn about some of the essential types of coverage to protect your home:

• Damage Caused by Natural Disasters: Coverage for damage resulting from storms, floods, earthquakes, and other natural phenomena is crucial in the event of structural damage caused by these events.
• Protection Against Theft and Vandalism: During natural disasters, property may become more vulnerable to criminal activity.
• Liability Coverage: In cases of damage to third-party property during a natural disaster, liability coverage is essential to ensure financial assistance and adequate protection in situations where liability is incurred.

What factors influence the price of comprehensive home insurance?

The flexible nature of this insurance allows you to choose the coverage that best suits your individual needs. But this flexibility also directly affects the final cost of the premium. Find out what the main factors are that influence the cost of this comprehensive home insurance.

• Selected coverage: As you might expect, the more coverage options you choose, the broader the scope of protection will be, but the cost of the insurance premium will also be higher.
• Insured capital: Just as with other types of coverage, the higher the insured amount specified in the policy, the more comprehensive the protection will be, and, consequently, the higher the premium will be.
• Franchise: If you choose a higher deductible, your premium will be lower because the insurance company will not be responsible for paying the full amount of the claim. However, if you lower the deductible, your premium will increase.
• Premium installment plan: The amount can be paid every semester, quarter, or month. However, some insurance companies may charge fees for paying in installments and depending on the payment method.
• Building value: Certain characteristics of the property are taken into account for the appraisal, such as the year of construction, the living area, the type of construction, and the materials used. Thus, if the building is new, the premium will be lower.
• Location: Insurance companies assign a risk rating to each region of the country. This rating depends on various factors, such as seismic risk, flood risk, and crime rates, among others. As a result, two multi-risk insurance policies that are exactly the same may differ in price due to the property’s location.
• Investment in safety: The insurance premium will be lower if there are fire or theft prevention measures in place, such as an alarm system, fire extinguishers, and reinforced locks.

How to Choose the Best Multi-Risk Insurance?

Choosing a comprehensive home insurance policy requires careful consideration. This is especially true because the price of this policy is determined by a number of factors that are beyond your control.

That's why it's important to know a few tips that can help you not only save money, but also find the best comprehensive home insurance for you:

• Get an estimate of your property's value: Start by identifying the characteristics of your property, including its age, type of construction, and location. These factors will help you determine the essential coverage needed to adequately protect your property
• Consider external factors: In addition to the home's features, consider external factors that may affect your insurance premium. Security measures, such as alarms, reinforced doors, and secure windows, can lower your insurance costs.
• Set the coverage amount: Estimate the amount needed to rebuild the house in the event of a loss. This assessment should be based on current reconstruction costs, ensuring that the coverage is sufficient to fully protect the property. In short, the sum insured will not correspond to the property’s purchase price or appraised value, but rather to the cost of rebuilding it in the event of a loss.
• Examine the filling coverage: Decide whether you want to include coverage for the belongings inside your home (known as “contents coverage”). Assess the value of your belongings to determine the coverage amount for this additional protection of your home’s contents.
• Compare insurance policies: Research and compare the plans offered by various insurance companies. Carefully review the coverage, limitations, exclusions, and premiums offered by each one to find the plan that best suits your needs.
• Rate the deductible: Learn more about the details of the insurance deductible. Although policies with higher deductibles may have lower premiums, consider whether you could afford to pay this percentage or amount out of pocket in the event of a claim.
• Talk to an insurance broker: Consulting with an experienced insurance broker, such as EXS, is essential to understanding the complexities of coverage and finding the multi-risk insurance policy that best suits your needs and your family’s budget.

Why choose EXS Seguros?

EXS Seguros offers an innovative solution to help you find the best price for your insurance policies. By simplifying the insurance comparison process, EXS analyzes the various comprehensive insurance options available on the market, taking into account factors such as coverage, monthly premiums, and claims history. This way, you’ll have the information you need to make informed decisions and choose a policy that meets your specific needs.

EXS Seguros offers:

• Comprehensive comparison: It compares a variety of multi-risk insurance policies from various insurers (it works with more than 26 insurers), ensuring that you have a comprehensive overview of the options available on the market.
• Customizing options: Our professionals take your individual needs into account, allowing for the customization of coverage options based on the property's location, claims history, and your preferences.
• Cost transparency: EXS provides clear information about the costs associated with each policy, including monthly premiums, deductibles, and any additional costs. This way, you’ll have a clear understanding of the costs involved before making a decision.

By choosing EXS Seguros, you’re not only simplifying the process of comparing insurance policies—you’re also finding more affordable options tailored to your needs. In a dynamic market, this insurance broker works with the 26 most competitive insurers in Portugal to ensure it offers you the most competitive solutions on the market.

To order your free trial For a multi-risk insurance policy, simply enter your information into our online calculator, and we’ll contact you to gather additional details. Within 24 business hours, our expert advisors will provide you with a personalized quote, taking into account the ideal deductibles and coverage limits for the coverage options you’ve selected.

If you need help choosing the best comprehensive home insurance policy, don't hesitate to contact EXS Seguros.