Are you buying a house? Here are the insurance policies you should have

When you take out a bank loan, there are two types of insurance you should purchase: comprehensive home insurance and life insurance.

The requirement to purchase a policy does not mean you have to accept all the terms and conditions presented to you. Coverage, exclusions, and premiums can (and should!) be negotiated.

Otherwise, there are more advantageous companies.

The goal is to provide the greatest possible protection in the event of a serious unforeseen incident.

Find out what types of guarantees both insurance plans offer, what coverage they provide, and how to save money without compromising the quality of your coverage.

Why do you need two home insurance policies?

Insurance serves as an additional safeguard.

After all, your home is subject to risks, and as the borrower, you, too, could fall victim to misfortune.

When you purchase insurance, you are essentially setting up a kind of emergency fund. If anything happens to the property or the policyholder, the company covers the losses and pays the expenses or debts.

Taken together, both types of insurance serve to protect the home, the family, and the household's finances.

Comprehensive Home Insurance: Don't just settle for the bank's offer

Home insurance, as it’s also known, is an investment that can pay off in the long run—it only takes one accident to jeopardize the contents and structure of your home.

Imagine the costs associated with a damaged floor in your home, electrical equipment damaged by an overload or short circuit, or walls or windows damaged during a break-in. The list of potential damages is extensive.

If you're planning to buy a home, know that you're not required to accept the bank's offer. You are required to have insurance, but you're free to choose the option that works best for you.

If you already own a property and are looking to reduce the cost associated with the comprehensive insurance Or, to get more coverage at the same (or lower) price, you can transfer the policy.

Coverage Under the Multi-Risk Home Insurance Policy

Before going into detail about the most common types of coverage, it is important to be aware that the The insurance coverage amount for multi-risk insurance should be the total reconstruction cost.

Therefore, if you make improvements to the property, you should contact the insurance company or bank and Update the amount to ensure you have full coverage.

When you purchase a unit in a condominium, you are required to have fire insurance. But there are other risks as well.

O comprehensive insurance ensures that you are entitled to compensation for situations such as:

• Theft;
• Damage caused by water or landslides;
• Fires, lightning strikes, or explosions
• Storms or earthquakes, among many others.

The premium amount will depend on the coverage you choose. Don't just look at the price.

And yes, older homes in high-risk areas—the Algarve and the Azores—should ideally have coverage against seismic events. Otherwise, they will not be entitled to compensation.

See the FAQs to find out what you need to do to activate the coverage for the comprehensive home insurance.

When researching the insurance policy that best suits your needs, you should take into account the characteristics of your property.

What should be included in the proposal?

When you purchase comprehensive insurance, you have three options: you can choose to insure only the building, only the contents, or both.

The proposal must include information such as:

• Replacement cost;
• Insurance coverage for the property and its contents;
• Franchises;
• Compensation limits for each type of coverage.

Please note: Anything not included on the list will be excluded. Be sure to read and review the policy terms and conditions.

EXS Seguros aims to simplify the entire process of researching and comparing offers because we know that this is the main obstacle to saving money.

This is a good option for anyone who is planning to buy a home or wants to lower their insurance premium.

The goal of the EXS professionals is to help you find the proposal that offers the best value for your money.

Always simulate the terms of the Multi-Risk Home Insurance policy

Insurance companies charge very similar rates for home insurance and life insurance. The difference may lie in the coverage and exclusions.

Before running the simulation, you should gather some information about the property's characteristics:

• Year of construction;
• Property location (which will determine the risk of certain natural events);
• Amount of filling;
• Presence or absence of alarm and anti-theft systems;
• Security in an apartment building or house.

Running a simulation through EXS optimizes both the time and quality of the quotes. Our professionals contact a range of 26 partner insurers, filter the options, and present you with only the offers that truly deserve your attention.

Life Insurance Mortgage: Total Protection

While comprehensive insurance is important, the life insurance A mortgage is essential.

Imagine that something serious happens that leaves you unable to work, or, tragically, you die and leave your descendants to shoulder the responsibilities you had while you were alive. Who will take over the monthly mortgage payments and pay off the remaining debt?

If you have life insurance, the financial consequences—that is, your monthly mortgage payments—will be assumed by the insurance company or bank where you purchased the products.

This risky move comes at a price, of course. It's what's known as the insurance premium.

Coverage of the Life Insurance Mortgage

The insurance premium varies in direct proportion to the coverage purchased. As the policyholder, you should pay close attention to the specific terms of the policy.

You should choose your coverage based on the risks you believe you are most likely to face. For example, if you have a family history of heart disease at a young age, make sure you purchase coverage that addresses these possibilities.

There are several types of additional coverage; however, two of them raise the most questions:

• Total and Permanent Disability: It provides broader coverage and can be triggered when you are the victim of an accident that results in a disability level exceeding 60%.
• Total and Permanent Disability: more restrictive, and may be invoked when the degree of disability is so severe that it necessitates assistance from others.

Also pay attention to deductibles—that is, the amount you are responsible for paying before the company covers the benefits described in the policy.

How is the premium calculated?

Each bank or insurance company has its own internal criteria.

The logic is simple: the greater the risk to the insurance company, the higher the price you'll pay for insurance.

However, there are some common factors that have the greatest impact on the final price:

• Age of the policyholders for the loan/life insurance;
• Outstanding principal;
• Health status;
• Professional activity.

It is common for insurance companies to request medical exams, medical history, or ask about common family medical conditions. Customers may perceive this as an invasion of privacy.

However, you can look at this requirement from another perspective: you have the opportunity to undergo a free comprehensive medical exam, which may help identify a serious medical condition.

Is the monthly fee always the same?

Another aspect that life insurance policyholders tend to overlook is changes in their insurance premiums. It is only when there is a sudden increase that customers express their dissatisfaction.

It's a good idea to keep track of how the premium changes over the course of the contract. If the amount becomes unaffordable, consider switching!

Also, ask for a premium review whenever something in your life changes that reduces the risks for the insurance company.

Frequently Asked Questions About Insurance When Buying a Home

1. How do I file a claim under my comprehensive home insurance policy?

If an accident occurs, you must report it to the insurance company as soon as possible. As a general rule, there are dedicated phone lines or email addresses for these cases. The report must include details such as the policy number, the date and location of the incident, a description of the incident, and the identification of the injured parties, as well as their personal and contact information.

2. What is the insured amount in a multi-risk policy?

This is the maximum amount the company will pay in the event of a claim. Even if the losses are higher, the insurer will only pay the amount specified in the policy. It is the policyholder’s responsibility to set an accurate amount at the outset (the property’s reconstruction value plus the replacement cost of the household contents) and to keep this amount up to date throughout the term of the policy. Please note that it is preferable to estimate and insure the home for its actual value rather than just its market value.

3. Is the loss of the spread discount automatic when you transfer your mortgage life insurance?

Whether you lose the discount on your mortgage spread depends on the terms of your contract and is not a universal rule. In most cases, you can transfer the insurance without penalties. Keep in mind that the bank slightly lowers the spread but makes up for it in the price of the life insurance. Review your policy, and if you want to save up to about 60%, run a simulation with EXS.

4. When does the life insurance policy associated with the loan end?

There are several scenarios for the termination of a life insurance policy. If you are still alive at the end of the policy term, the contract terminates. If something serious happens—such as death, disability, or becoming dependent on others—or other situations covered by the policy, the beneficiaries receive the insured amount immediately, and the policy is settled.