The insurance companies have offered from their origins, a large list of insurances that adjust to the needs of each person, this time, we come to tell you about the role and importance of Home Insurance, but … What are they?
This type of insurance is responsible for protecting the property or home of a person, against a possible risk of damage of various kinds, safeguarding real estate in case it is affected.
Did you know that only 8% of the Latin American population has home insurance? Despite the diversity of natural risks, theft or damage that are also common in this continent, this low percentage is due to the high costs compared to other products.
The penetration of home insurance in Latin America remains low compared to other regions of the world, even below other lines such as automotive or medical expenses.
What damages does this insurance cover?
Insurance coverage is based on protection in the event of fires and what this entails, nature risks: volcanic eruption, floods, tsunamis, structural damage (such as broken pipes). In addition to the above, it is possible to expand the risks to be covered by the insurance, such as protection against theft, broken glass, civil liability (for damages caused to other people from the home, such as floods), among others.
It is important to take into account when insuring a home, the term “underinsurance”, which occurs when the value of the insured capital is less than the replacement value of the insured object.
In this insurance, the value of the building can be given, as well as the electrical appliances, where at the time of the loss, the expert will be in charge of verifying that the values that appear in the policy of the insured are real, if not at the time of to compensate the claim the proportional rule would apply.
The proportional rule stipulates that in the case of underinsurance at the time of a claim, the compensation will be reduced in the same proportion as the capital is insufficient. An example of this could be a home with insured content of $ 30,000, if a theft occurs and the value subtracted includes $ 5,000, in theory the compensation should be for that amount, however, if the real value of the home were $ 40,000, the underinsurance would be 25%, whose proportional rule applied to the compensation will be stipulated in the payment of 75% to the insured, being $ 3,750.
There is no doubt that at present the erroneous perception of the client about home insurance must be changed, which is why for this the service and good communication of the insurers with their clients will be essential.
Through LISA Claims, you will be able to process automatically and digitally, the settlement of household claims of your policyholders. Do you want to improve the liquidation processes of your company? Get in touch with us!