Home insurance is a type of contract that allows you to protect yourself against certain risks and disasters related to your home. Thus, it is essential to take out insurance when buying a home. However, you have to choose the right time to purchase home insurance. Here’s what you need to know about it.
On the day before the signing of the deed of purchase
Home insurance is a contract that covers all damage suffered. It is possible to subscribe to contracts that offer more extensive cover. Obviously, the cost for taking out this type of contract will be higher than if you take out traditional insurance. Also, the home insurance contract generally takes effect from the date on which the purchaser of the property receives the keys.
It is therefore not mandatory to take out this type of insurance several days before handing over the keys. This way of proceeding saves you some inconvenience. It protects you in a way, in case the seller changes his mind for some reason. This is why many people take out insurance the day before signing the contract or on the day of the contract.
After acquiring the property
When you own real estate, you have the choice of insuring it or not. Unlike tenants who must do so, the owner has no obligation regarding the housing contract. However, it is important to do this to limit the damage in the event that a disaster occurs in the accommodation. The owner can therefore take out home insurance days or even months after having taken possession of his home even if the latter thus takes great risks. This way of doing things doesn’t just have its drawbacks.
Indeed, this gives the buyer time to choose the insurance company that suits him both in terms of his budget and in terms of the guarantees offered. Also, it allows him to prevent possible unpleasant situations such as the one in which, after having taken out insurance days in advance, the seller changes his mind. This would be an unnecessary expense and even if the seller offers to reimburse the person concerned, it could take time.
A few months in advance because of the waiting period
In the Insurance Code, multiple rules are defined with regard to time limits. Indeed, there are delays before the full application of the guarantees offered to the customer. For example, with respect to home insurance as well as other types of insurance contracts, there is a period during which the insured is not covered. All claims occurring within this time frame are not taken into account by the insurer.
Since there is a waiting period, there is no guarantee of the contract that works during this period. Insurance houses generally do this in order to avoid being fooled by certain policyholders who take out insurance in order to protect themselves from imminent risk. Subscribing months in advance allows you to benefit from guarantees as soon as you enter your home.