Types of Real Estate insurence

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Types of Real Estate insurence

Posted by Tayrona Inmobiliaria on 30 January, 2024

Real estate insurance is an essential tool to protect your real estate investment against a variety of risks. These insurances can help mitigate significant financial losses and provide the homeowner with peace of mind knowing that their property is protected.

In Colombia, many financial institutions require real estate insurance as part of the conditions for granting mortgage loans. This is because property insurance provides lenders with an additional layer of security in case the homeowner is unable to pay their loan.

Types of real estate insurance:

There are many types of real estate insurance available on the market. The most common types are following:

  • Damage protection insurance: This is perhaps the most basic form of protection that real estate agencies offer their clients. These insurances protect people’s material assets in situations of damage to property.

  •  Lease insurance: This type of insurance is established between the owner and the insurance company to protect the property from tenants who may fall behind with monthly payments. The insurer is responsible for thoroughly investigating the tenant before the lease contract is signed.

  • Multi-risk insurance: the most popular solution because it protects the structure of the property and its contents. Moreover, it also includes Civil Liability towards third parties. Some companies can even offer a wide range of protection against fire, electrical damage, water damage, atmospheric phenomena, cosmetic damage, theft, and more.

  • Loan amortization insurance: This type of policy offers payment protection linked to a mortgage. In case of death, temporary incapacity for work or unemployment of the owner, the policy releases from total or partial payment of the debt to the heirs, depending on the insured percentage.

  • Comprehensive policy: Includes administration fees, extraordinary fees, public services, damage caused to the property, shortages in the initial delivery inventory and other related costs after the eviction of the property.

Property insurance is a smart investment for any homeowner. When choosing property insurance, it is important to compare the different options available to find the one that best suits your needs. It is also important to read the policy carefully to understand the terms and conditions of coverage.

Here are some additional recommendations for choosing property insurance:

  • Request quotes from various insurance companies.
  • Compare the terms and conditions of each policy.
  • Ask about coverage exclusions.
  • Consider obtaining insurance with a deductible.

Proper real estate insurance can give you peace of mind and protection for your investment. At Tayrona Inmobiliaria we are committed to help you protect your property. For this reason, our landlords have the possibility of acquiring a property insurance service that adapts to specific needs.

Our team will help you compare the different options available and choose the policy that best suits your property and budget. We will also provide you all the information needed to understand the terms and conditions of coverage. We take care of managing the entire insurance contracting process, so you don’t have to worry about anything.

If you are interested in obtaining more information about our services, do not hesitate to contact us. We will be happy to help you!

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