Today we want to talk about what a multi-risk home insurance policy consists of. We will understand the reason for this special denomination, and how the home insurance policy has evolved from its origin to what the companies offer today.
YESTERDAY’S home insurance
In its beginnings, home insurance was not known as such. It was called “fire” insurance . For this reason, we will see in many homes: “fire insured”.as this was the only thing that was covered at the time.
Why? The clearest reason: it was the main risk of loss at that time, since the houses were built with other materials. Wood was present in a higher proportion in those constructions, so being a more flammable product, the probabilities were higher.
In addition, if a fire broke out, as the means of extinction were not so advanced and were not so widespread, it was much more serious than they usually are today.
Without going any further, we find the example of Santander in 1941 that devastated the historic center of the city.
Home insurance TODAY
Gradually, as customers’ needs have evolved, new guarantees have been introduced. Among others, we are talking about:
- glass breakage,
- civil liability,
- water damage,
- theft in and out of the home,
- electrical damage in home insurance
This continuous improvement of the policies is still present. The latest: the handyman service or do-it-yourself service, highly demanded by customers, for small incidents we may have in our home.
Main problems in home insurance
The loss ratio of home insurance policies has increased compared to what it was a few years ago. In times of crisis, like so many things, premiums have been adjusted and claims have increased.
The main causes of claims in home insurance are:
- Water damage
- Glass breakage
- Atmospheric phenomena
- Electrical damage in the home
The first two “take the cake”. But the truth is that the loss ratio in home insurance is contained. Three quarters of insured homes do not have a single claim per year, which is very positive for the evolution of premiums. If there are 18 million homes with policies, less than 5 million have at least one claim.
If you want us to make you a professional comparison of the best home insurance, contact us and find what you are looking for now.
