Home insurance: Why do I pay more than my neighbour

Hiring a good home insurance is essential to sleep without worries. Home insurance allows us to ensure our home and belongings in the event of a catastrophe. On the other hand, it offers coverage and assistance before certain eventualities that could cause us an economic loss.

However, not all home insurances are the same. There are cheaper and also more expensive. The continent of the house and its content are the two variables that determine the final price of the policy. This is the reason why perhaps, having the same house as your neighbor, you pay more for home insurance than he does.

Home insurance: EVERYTHING you have to take into account

What is the continent?

If you could take your house and put it upside down, everything that would not fall would be the continent: the walls, the ceilings, the floors, the electrical installation, the pipes, a construction pool, the terrace, etc. Everything that is fixed to the property and is within the enclosure of it, forms its continent.

Therefore, the continent is the construction value of the empty house. To calculate it, the square meters and the construction price are taken into account, which is a function of the type of housing in question (a luxury flat is not the same as a mid-range townhouse).

When insurers set the price of the insurance they have the account that they have to guarantee the cost of an accident that could suppose the total or partial destruction of the property.

What is the content?

Following the example of the initial example, the contents of a house would be everything that would fall when it was turned upside down: appliances, furniture, decoration, jewelry, a computer, etc. The greater the value of all these things, the higher the price of insurance.

It is very difficult to guess the value of the contents of a house. It would be necessary to take all the invoices and add them, and even then there would be errors. For this reason, it is common to use the 30% rule, according to which, for a fully furnished apartment, the value of the content is around 30% of the value of the continent (excluding items of special value, such as jewelry).

Home insurance: how to choose the best?

To choose the best home insurance you have to be very clear about what we want to ensure and why it matters. A good insurance would be one that does not ensure less (underinsured), but not too much (over-insurance) . In either case, there could be problems with the insurer in case of an accident.

Most of the time the key is not to pay double for some coverages. If your home is part of a community you should check that the policies do not cross covering the same thing, because if so, you would be paying more without being necessary.

Similarly, if you are the owner of an empty home that you exclusively use for rent, you may be interested in ensuring only the continent. On the contrary, if you are the tenant, what you will be interested in will be the content.