If you have raised the price of your home insurance, surely, you are wondering if the insurer can do it and why. If you have not seen yourself in this situation, with this post we intend to help you clarify concepts so that you know whether or not it is legal and, in short, be prepared for any unforeseen event.
Go ahead that the premium increase is completely legal as long as it is recognized in the contract signed between the parties. And the reason, regardless of whether the CPI is negative or not, is because homeowners revalue capital annually to avoid being outdated. With this example set in RPA Insurance , we are convinced that you will understand it at first.
In addition, another reason for the possible annual increase is the cost of the services of the workers who are responsible for executing the repairs. Their rates also go up year after year.
Automatic capital appreciation
As we have indicated, that they raise you, even without warning, the price of your home insurance is legal. This legality is based on the automatic revaluation of capital that includes home insurance . In this way, in the event of an accident, the amount of compensation will be adjusted to a greater extent to a real market value.
Imagine you have to resort to insurance and a few years ago you hired him. It is quite likely that the value of the property and the content has been outdated. With this annual increase it is avoided that the compensation that you received was lower than what corresponded in each case.
If at this point you are thinking if your policy includes this condition, you should review it and read its particular conditions. Because not only will this revaluation be contemplated, but also the percentage that will rise.
How does this automatic capital appreciation work?
The annual update of the home insurance premium based on automatic capital revaluation can be carried out based on a variable or fixed index system.
- Variable: The percentage will depend on the variations of the CPI, published by the National Statistics Institute.
- Fixed: It is subject to the conditions agreed with the insurance company.
As a result of increasing the insured capital, the annual insurance premium rises.
Can I pay less for my insurance?
Paying less for your home insurance is possible. Thanks to RPA Insurance you can group this insurance with other policies you have and reduce what you pay each year . But, in addition, you can also benefit from the installment payment in twelve months without interest . And, if you still don’t have home insurance, RPA Home Multi-Risk Insurance has a main guarantee to offer you complete coverage against the most common risks, such as 24-hour assistance 365 days , computer assistance, locksmith, electricity urgency, glass breakage, ceramic hobs and sanitary ware, among others.
Wide range of Insurance
- Rural Total Compact. In addition to the main guarantees, it offers coverage for robbery outside the home, fraudulent use of cards, theft of jewelry inside the home or damage to refrigerated food.
- RuralCompact Premium. This is a high-end insurance that, in addition to all the main guarantees, includes the same coverage as the RuralCompacto Total but with greater capital in jewelry theft and, in addition, ‘all accidental risk’. That is, it covers all direct damages produced in the insured goods for any accidental cause.
- Rural Standard Compact. Specially designed for rental housing, secondary, or if you want to insure only the immuble.
- This insurance is totally personalized. You choose the guarantees of the policy.
From now on, you know that your insurance company can raise the premium of your home insurance annually legally. Remember that it is an expense that ensures you, in case of accident, save you a good dislike.