house insurance

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fybian
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house insurance

Post by fybian » Sun Mar 14, 2021 9:29 pm

I have a question about house insurance. I am about to finish paying my mortgage and would like to buy house insurance for my apartment by myself. I am wondering how much I need to insure for my apartment? I understand I need only to insure the value of the structure, not the full value of the apartment. But where can I find the information that how much the structure of my apartment worth? Many thanks!

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admin
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Re: house insurance

Post by admin » Mon Mar 15, 2021 8:05 am

I typically go with "how much do I need to make myself hole again in the event of a disaster' kind of calculation.

I live in a parcelication with an independent house. I don't worry about the land. The land is worth at least 4 times the structure alone. I dont envision any likely circumstances in which the land value is lost to a disaster short of an asteroid hitting it.

I have fire, theft, earthquake coverage. fire is probably most likely risk.

I figure if the structure burnt down, I would need at least 50 million to cover rebuilding in materials to build back exactly as is or much better. I also calculated that I would need two years rent somewhere else while I rebuild.

Plus I still have insurance on the property through the bank because I have a mortgage, so I have two insurance policies. The total potential payout would be the entire mortgage, plus cost of replacing the structure, plus cost of rent.

Now, the problem with an apartment is, are you really going to be able to rebuild your apartment if the whole building burns down? an earthquake?

Are you prepared to be homeless for years while that goes around and around in the courts?

You might want to insure for buying an entire new apartment. I have also seen buildings that get subtle earthquake damage, year after year, and the buildings' insurance company only wants to pay for a new coat of paint to cover up the cracks, that are clearly structural. half the building just wants to pocket that money and do nothing. Like the only way to recoupe the value of the apartment would be demolish it and rebuild the building from scratch.

Basically you need to insure for the building and other owner's stupidity.
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From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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Re: house insurance

Post by admin » Mon Mar 15, 2021 8:31 am

I also look at two separate insurance policies, as a bit of insurance against the insurance company. If one gets stupid and wants to have a fight over the payout, it lowers the chances of being left with nothing for years, while fighting the insurance company in court.

I have just seen way too many insurance companies play the game where they think out of desperation, they can force someone to take a lower payout or dragging their feet is cheaper.

Now, because of what we do, so far I have never had an issue with promt pay outs from insurance companies. In fact, our insurance adjusters have been bizzarly generious; but, I still would not put it under one when facing a big payout to try and pick a fight with us rather than pay because they calculate it will be cheaper to drag it out in court. We could bring the legal hamner down on them if they did, but still tying up our attorneys in court with mickey mouse insurance claims costs us money, they could otherwise be making doing something else for a paying client. So I want to be sure I am covered for that possibility.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

fybian
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Posts: 26
Joined: Mon Oct 23, 2017 10:54 pm

Re: house insurance

Post by fybian » Mon Mar 15, 2021 5:58 pm

Hi Admin,

Thanks so much for your reply. It is really helpful. I have some following questions.

1. If the structure of my apartment worth say, 3000UF, and I have an insurance policy of 8000 UF for the apartment, if something bad happened, the insurance company would pay me 8000 UF or only 3000 UF.

2. For the above case, If I buy two insurance policies, each for 3000 UF. Do each of them pay me 3000 UF, or only 1500 UF.

Thanks again for your time.

BTW: Believe me, if your land was hit by an asteroid, it would worth way much more than now.


Frank

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