Protect Your Property Properly: What to Watch Out for When Arranging Insurance
Property insurance is one of the key ways to protect your home or other assets from unexpected events, such as natural disasters or theft. However, many people make mistakes when arranging insurance or overlook details that can have a major impact on the payout of the policy. This article focuses on the most common problems and situations that everyone insuring their property should watch out for.
Waiting Period: Insurance Does Not Apply Immediately
One common misconception is the belief that insurance takes effect immediately after signing the contract. Most insurers, however, set what’s called a waiting period – a time frame during which the insurance does not cover certain specific events. For example, for floods, the waiting period is often 10 days, meaning that if a flood affects you on the fifth day after taking out the insurance, the damage will not be covered.
According to statistics, up to 60% of insurance clients have no idea what a waiting period is and don’t take it into account when arranging insurance. Therefore, it is crucial to study these conditions carefully and, if necessary, consult a professional.
Natural Disasters: Which Risks Are Most Common?
Flash floods and river floods are among the greatest risks faced by property owners in the Czech Republic.
Statistics show that:
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The average damage caused by a flood reaches up to 300,000 CZK (€12,000) per household.
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Flash floods hit the Czech Republic up to 20 times a year, and their intensity can surprise even areas not marked as flood zones.
It’s also important to know that some insurance contracts cover floods but may not include flash rainfall that causes damage. Clients should therefore check whether their insurance includes all the necessary coverage.
Ending the Insurance Contract: Beware of Deadlines
An insurance contract cannot be canceled overnight. The law stipulates that notice must be delivered to the insurance company no later than six weeks before the end of the insurance period. If the client misses this deadline, the contract is automatically extended for another period.
According to statistics, 30% of clients have trouble meeting this deadline. Many forget about the date or don’t know that insurance cannot be terminated without this notice period. The result is having to pay premiums for a period when you no longer need the insurance.
How to Avoid Problems?
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Ask about the details: Make sure you understand the conditions, such as the waiting period or the exact scope of insurance coverage.
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Don’t underestimate statistics: If you live in an area prone to flooding, check that your insurance truly covers the natural disasters that could threaten your property.
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Plan ahead: If you want to change or terminate the contract, don’t forget about the notice period.
Careful selection and regular review of insurance contracts can save not only money but also stress and complications in the event of an insurance claim. Remember that thorough preparation is the foundation of effective protection of your property.
Note: Fixed rate used: 1 EUR = 25 CZK.
