A real estate insurance policy is a contract where the insurer undertakes to cover the damages or losses that the property may suffer in the event of an accident, such as fire, theft, flood, earthquake, or other property of the insured.

The objective of taking out a real estate insurance policy is to protect the assets of the owner or lessee of the property. As well as that of its occupants, against unforeseen situations that may affect its value or its habitability. In this way, the insured can receive compensation or reparation from the insurer, according to the conditions established in the contract. It also protects the family assets and the economic future of their children.

Importance of taking out an insurance policy

Its importance is due to multiple reasons. Hiring an insurance policy is a way to protect both the family assets of the insured, as well as the economic future of his children and his wife. Therefore, it is of great importance to take out an insurance policy. Some more important reasons are as follows:

• It offers peace of mind and security to the owner or tenant of the property. Since they know that they have financial support in the event of a mishap.
• It helps to reduce legal conflicts that may arise between the parties involved in the property, such as the owner, the tenant, the neighbor, the bank, etc.
• It facilitates access to mortgage loans or other forms of financing. Since many financial institutions require having real estate insurance as a requirement to grant a loan.
• It contributes to the increase or the fixed price of a property since its deterioration or destruction is avoided.

In general terms, a real estate insurance policy is an instrument that provides protection and benefits to both the owner and the lessee of a property. As well as its occupants and third parties related to it.