The insurance market for apartments and country houses can provide for almost all the risks, ranging from the banal theft and ending with the fall of aircraft. But the capricious insurer – the more expensive the policy will cost him.
The insurance market for apartments and country houses is gradually becoming an anti-crisis straw for insurers: surveyed market participants claim that this segment, unlike a number of other niches, is developing at a rather high rate.
There are several reasons: increased activity of sellers themselves, replication of “boxed” property insurance products through banks and agent networks, and, finally, increased anxiety of owners, which became aggravated during the crisis.
Crisis is not an obstacle
According to experts, home insurance (apartments and country houses) forms from 50 to 80% of the property insurance market for individuals, and therefore the statistics of this niche objectively reflect the processes occurring in the residential real estate insurance segment.
“The citizens property insurance market is one of the most promising types of insurance for insurers. Plus, against the background of the stagnation of the insurance market as a whole, this segment continues to grow: according to the Central Bank, by the end of 2015, the growth of the entire insurance market for individuals was 13.7%, and there is reason to believe that the growth will continue, ”says the first deputy general director VTB Insurance Oleg Merkulov. At the same time, Ivan Kolupaev, director of the underwriting department at Zetta Insurance, notes that in Moscow the insurance market for apartments and country houses is growing at a faster pace than average figures for Russia. “According to the results of our research and data from the Central Bank, more than half of the products sold on the market fell on classic types of insurance, 25% on the sale of boxed products, 10% on mortgage insurance.
Anton Vorontsov, managing director of retail insurance for SOGAZ, states that the metropolitan region accounts for 40% of the property insurance market for individuals, while classic insurance for apartments, houses and buildings covers 70–80% of the niche. The remaining part falls on mortgage insurance, home appliances and electronics insurance, and some other subspecies. According to his estimates, in Moscow, about 90% of adults have an average property insurance contract (for example, in many subjects of the SFD and NCFD such policies are from 0.3% to 3% of physicists over 18): “So high by Russian standards The level of coverage is explained by the fact that in Moscow, the municipal housing insurance program has been operating for 18 years, thanks to which 60% of the city’s housing stock is provided with insurance protection. ”
As experts explain, in general, the insurance market for apartments and country houses is growing mainly due to the activity of the insurers themselves. “In the face of falling sales in other areas (for example, car dealerships), insurers in recent years have launched sales of inexpensive“ boxed ”property insurance products, mainly through agent networks and offices of partner banks. Such products have fixed insurance amounts and are easy to design, ”Vorontsov noted.
“Sales through banks show the most dynamic growth – 23% in 2013 and already 32% in 2015. Almost doubled in two years and the share of non-insurance intermediaries – from 5% to 9%, ”clarifies Kolupaev.
Classic or express?
What is the difference between a classic insurance policy and a “boxed” product? In the first case, the client can independently choose a set of risks that will be included in the contract, supplement the insurance with additional points and form an insurance product for themselves. Its final cost will depend on the portfolio of risks that fall under the policy, the characteristics of the insured residential property, the number of documents confirming the cost of housing. A “box” is a ready-to-use fixed-cost insurance.
In the first case, the registration of the policy will take more time: most likely, you will have to talk with an appraiser, go to the office, prepare photos of the property and documentary evidence. In the second – the policy can often be bought online, without communication with the insurance agent. But naturally, with classic individual insurance, the owner of an apartment or house can cover almost any risks, and in express insurance – be content with a small amount, which most often takes into account standard risks (for example, fire, explosion, natural disaster) and does not reflect the value of your own. housing and property.
According to estimates of Alexander Loktaev, general director of the Assistance insurance company, the average annual apartment insurance rate is 0.1–1.5% of the value of the insured property, and the premium is calculated by the insurer depending on the sum insured, the list of risks, the term of insurance, the type of insured property.
When insuring an apartment, there are four basic parameters: supporting structures (walls), finishing (repair), property inside the house (furniture, appliances), as well as civil liability (for example, the bay of neighbors). Tariffs for insurance of country houses vary in the average range from 0.2% to 1% of the value of the building, if you wish, you can insure the land on the site (0.8–1.15% of its value). The final price of a “country” policy is influenced by various factors: the economic purpose of the building (house, bathhouse, shed), the type of building (stone, brick, wood), the year of construction and the type of wall materials, the roof of the foundation and decoration.
Lyubov Kononenko, head of the department for underwriting property of individuals and mortgage insurance at Concorde Insurance, notes that an apartment can be insured as a whole (constructive decoration, interior decoration, engineering equipment) and selectively (for example, only interior decoration or engineering equipment). According to her, cottage and garden houses are often insured as a whole, but in rare cases, the owners of brick houses claim only interior decoration for insurance. The price of the question may differ for different types of housing, depending on the probability of the realization of a particular risk. For example, the insurance rate for a wooden summer cottage on an unguarded garden community may be about 0.5% of the sum insured, and for a stone house for permanent residence in a guarded cottage village – 1,
Increasing the cost of insurance is the fact that the housing to be insured, for example, is leased or construction work is being carried out on the land plot. But the owners of the alarm, metal door, intercom, security cameras, grilles on the windows of the first floor of the policy will be cheaper if, say, the risk of theft is included. You can also save money by purchasing a policy with a deductible – part of the cost of damages that the customer takes on. The franchise reduces the cost of insurance, but the owner of the dwelling will have to pay for minor damage upon the occurrence of the insured event.
Experts also advise in cases of individual insurance of apartments and country houses to refuse inclusion of unlikely risks in the policy, this will significantly reduce the price of the product. Thus, when insuring a city apartment, you can safely exclude the risk of natural disasters, the fall of aircraft and terrorist acts, Loktaev said. According to Vorontsov, if the building is located in an area where there is no seismic hazard, then there is no point in insuring the house against an earthquake.
But there are risks that must be taken care of. Thus, according to insurers, more than 50% of insurance claims in apartments are bays, and more than 70% in country houses are fires, so the risks of a gas pipeline accident and fire should be taken into account when filling in an insurance policy.
However, it happens the other way around. For example, recently the owners of a two-storey country house turned to their insurer for a refund when they came to rest for the weekend and saw that the first floor was “floating”. Characteristic damage was found on the hose in the toilet cistern: it turned out that the domestic cat loved to play with the hose, especially when the hose was twitching under the pressure of water, but no one noticed the animal’s dangerous addiction, and the cat broke the hose, which flooded the room in five working days. The case was recognized as insurance, the company’s customers received a refund.
Speaking about mortgage insurance, market participants distinguish it in a separate direction, paying attention to noticeable differences from the classic individual insurance and express products. “The main difference between mortgage insurance is that most often the insurance amount is not equal to the full value of the apartment or house, but corresponds to the loan debt balance,” Kolupaev draws attention. “In mortgage insurance, as a rule, they do not insure the interior decoration, but only constructive,” – says Merkulov. “In addition to property insurance, mortgage insurance may include life insurance of the borrower, as well as title insurance (that is, property ownership rights), which may be relevant when buying a home in the secondary market,” Vorontsov sums up.