Get Your Property Indemnity Insurance Quote
When you take out property indemnity insurance you pay a one off lump sum. This then covers you for whatever problem you have chosen to insure against until you sell your property. As long as the property’s value is the same as at the time you purchased it you can pass on your property indemnity to a new buyer, whether you sell the property immediately or some time later. The price of your insurance will vary depending on a number of factors, such as age of the building, how many bedrooms and baths there are, how much money you wish to put down and whether you want to include extra features such as a swimming pool or bar. A typical property indemnity insurance quote can cost you anywhere up to three times more than you would normally expect to pay for an equivalent insurance policy.
How property indemnity insurance works when you’re buying a property is that it pays out to the landowner in the event of some unforeseen problem. For example, say you were buying a house on a quiet estate with little traffic but it was in an unspoilt area. If you were to have a problem with rodents driving into the property and causing an infestation, the landowner would have to foot the cost of pest control. You would probably not consider this a problem and it’s just something that needs to be addressed, however it’s important to understand what type of coverage you have in case something like this does happen.
On the other hand, say you were looking at buying a flat in a popular area where a council ordered a compulsory survey was carried out. Before you agreed to purchase the flat, you should check to see if planning permission was needed. The two key factors that will influence your decision are the location of the property and the amount of development there is to do around it. If you re buying a property that has planning permission, then you can normally get planning indemnity insurance to pay for any problems that arise over time.
Of course, when you’re buying a property that doesn’t have planning permission it will still be cheaper to take out planning permission insurance. However, the cost will depend on how much work has to be carried out to make sure the site meets all the council requirements. It’s possible that the site may even need to be demolished to make way for building. This will affect the price of the policy.
If you do buy a property that does not have planning permission or is in an area that does not have all the appropriate building regulations, then there could be additional costs to take into account. These could include extra security features, for example. There might also be a need to make alterations to accommodate wheelchair access and similar features. Again, these costs could be part of the indemnity policy. If you were to ask the insurer what could be expected as a result of making these improvements, it’s worth looking to see what additional cover the policy would provide.
If you’re buying property abroad, it’s worth finding out what type of property indemnity insurance you’re likely to get. While it’s a lot cheaper to buy a property outright, this option often means that you don’t have any coverage at all and are responsible for anything that happens to the property. If you want to get cover for damage or loss, or both, then you need to consider an option that gives you a measure of peace of mind that the property won’t be lost or damaged beyond repair. If you don’t think you’ve got enough experience to know how to handle a property, it’s better to pay for some professionally provided cover that you can rely on.
It’s also worth finding out about a property indemnity insurance quote from a few different providers. Although this isn’t necessary, it’s worth doing in order to compare the rates and services in any given category. This way, you’ll be able to make an informed decision and make sure that the policy gives you enough cover at a price you can afford. You should also find out if there are exclusions included in the policy – this will make sure that you’re not passing up chances to claim without knowing about them. Be aware, though, that just because a provider includes exclusions in a quote doesn’t mean you’ll be exempt from being reimbursed should you incur losses that exceed the exclusions.
When getting a property indemnity insurance quote, also ask about claims-free policies and the possibility of combining policies. If you already have renters or tenants in place, for instance, it may be worth reviewing how these can be combined. Also consider if there’s a limit on the amount that you can claim back when something happens to your home. These can vary greatly between different providers, so take some time to make sure you get the best deal possible on property indemnity insurance.