Pros and cons of boxed real estate insurance
house under glass
A relatively new product in the insurance market is boxed insurance.
This product is used for a variety of objects: movable and immovable property, business, risks associated with accidents, accidents and accidents, traveling abroad.
Property insurance in this way is also not without benefits - the main ones are the ease and speed of policy execution.
This policy includes several insurance products at once, giving the client the opportunity to choose the set that suits him best.
What is a box insurance?
Box insurance is a finished product that represents an insurance policy with predetermined data: price, list of risks, insurance limits and payment terms.
In contrast to the standard way of design services, when the client chooses the elements he needs and as a result forms the final package, insurance in the box does not provide for such actions.
Another name for this product is express insurance. This name reflects the main advantage of insurance in a box - its speed and minimal time costs.
To purchase a policy, it is not even necessary to communicate with the employees of the insurance company - in most cases, you can purchase it yourself using internet banking or by paying for the selected package through an ATM.
Despite such ease of purchase, policy conditions are often very profitable and have no significant restrictions.
Insurance in a box: for which objects and risks it is better to use
Express - insurance is often used for real estate, because, against the background of ordinary insurance, it has many advantages.
The main thing is a simple and fast procedure of registration - no need to collect a lot of papers and certificates, make an inventory of the property and assess the value of an apartment or house.
Everything is done with a minimal amount of effort, and from the documents the client will need only one passport.
Boxed products provide the ability to insure property against various risks, for example:
flooded housework bearing structures and decoration of an apartment or house;
theft of things and property that are in the housing;
the consequences of a fire or flood (both for your home and for your neighbor);
illegal actions of third parties;
domestic gas explosions;
negative consequences resulting from natural disasters.
Despite a lot of advantages, express insurance is still more suitable for low-cost real estate.
In this case, the savings on the policy is justified, since the amount of insurance compensation will still not be large.
However, if the property is expensive, it is better to spend additional time and effort and issue an individual policy - with an inventory and a real estate valuation.
In case of serious damage, it will be possible to receive a much larger amount of compensation for the damage suffered.
Distinctive features of box insurance
In the early stages of the application, the boxed products were very different from the standard programs - since this was an untested novelty, the insurers did not dare to take on more responsibility.
real estate insurance. Differences were manifested in all exceptions to insurance claims, the establishment of sublimits, etc.
At this stage of using express insurance, almost all restrictions have been removed, and the wide variety of package conditions makes it even more attractive than the classic program.
The main characteristic of box insurance is the maximum standardization of policies sold.
That is, the insurer does not set itself the goal of finding an individual approach to each client and developing the terms of the contract that are suitable for him.
The policy is designed in such a way as to best meet the needs and at the same time cover a wide range of potential customers.
Simplicity in design and lack of requirements for a package of documents may seem ideal conditions for fraud customers.
Since the valuation of the property is not carried out, the client can declare any amount, even several times higher than the real cost of housing (for example, not 20 thousand dollars, but 200 thousand).
However, in the event of an insured event, such a client will not receive anything - according to the terms of the contract, the provision of inaccurate information is the basis for its termination.