En Euroteide Insurance We always try to make sure that the declared values of the continent and the content of a Home Insurance faithfully adjust to reality.
And it is that, in the event of an accident, the insured may have serious problems if these declared values are lower than the real ones. Therefore, let us know how insurance companies define concepts such as continent and content and how both values can be easily known.
Continent and content, how are they different?
To calculate the continent and content in a Home insurance It is essential to know what exactly both concepts mean and what elements of the house are included in them:
What is the continent in home insurance
A commonly accepted definition of continent of a dwelling is that they are the constructive parts of a building that are part of the structure of the building and that cannot be dismantled.
However, there is some ambiguity in this general definition. Therefore, let us detail precisely what are the elements included in the continent:
- All structural elements and their accessories: foundations, beams, floors, floors, walls, ceilings, exterior cladding, roofs and chimneys.
- Essential installations for the functionality of the property: internal electrical wiring (including television and telecommunications), gas and water pipes, drainage pipes, doors and windows.
- Interior finish of the house: tiles, parquet, painting of walls and ceilings, tiling, baseboards, moldings, plaster and false ceilings.
And the content?
Obviously, anything that is inside our home and does not correspond to the container must be considered content. As an example:
- All furniture, including kitchen cabinets and countertops (even if cemented or joisted).
- Lamps, oculi, wall lights and lighting panels.
- The appliances.
- Any other electrical or electronic device.
- Items such as clothing, footwear, trousseau or carpets.
- Sanitaryware and their accessories: toilets, bidets, sinks, bathtubs, showers, bathroom screens, sinks and taps.
- High-value objects such as antiques, art objects, collections, watches, jewelry, etc.
The previous list is not extensive, we will add to the declared value of the content anything else that we have or keep in our home and it is convenient Don't forget about food and drinks. In single-family homes it is common to have large freezers full of groceries and large cellars. Equally, we must not omit the belongings stored in storage rooms and garages.
How can you know these values?
The amount of the home insurance premium depends on many factors, but the most important is the value of the insured property. Hence, the natural tendency of some policyholders to reduce the values of the container and content, with the aim of lowering the premium.
This is a serious error, if we do not suffer any loss, the values of container and content are indifferent. But if an accident occurs, the consequences will not be exactly pleasant for the insured.
If the insurer considers at the time of indemnification that the values of the continent and content of the Home Insurance by the policyholder are below the real ones, A proportional rule will be applied to calculate compensation.
It is what in the internal language of insurance companies is called "undersafe”. Let's take an example to understand what can happen in that case. Let us suppose that an insured owns a home whose actual construction value (excluding the value of the land on which the property stands) is of 150 000 euros.
Suppose also that this owner has declared a container value of only 75 euros (half the real value) and the house catches fire, causing damage to its structure and construction elements, amounting to 60 euros.
Well, once applied proportional rule, the insured You will only be entitled to compensation of 30 euros (half the value of the structural damage), since the declared value on the mainland is half the actual value.
And in the event that the company detects that there is also an "infra-Insurance" of the content, the same would happen with the compensation related to the damages suffered in it.
How to calculate the value of the continent
The strict method consists of multiplying the built square meters, not the useful ones, by the actual construction price of each square meter (the value of the land is never included).
Now, who knows exactly what the exact construction value of each square meter of your home is? The correct answer is almost no one. As an example, a house of 100 square meters built can be built for about 60 euros if the quality of the construction is low.
But for a type of construction of standard quality, its cost can be around 75 or 000 euros, and if we are talking about a high-end home, that cost could double or even triple.
To avoid discrepancies between the actual value of the continent and the declared value, Insurance companies have automatic calculation systems. These intelligent systems value the continent from the cadastral reference of the property.
If there is no cadastral reference, the valuation takes into account factors such as the year of construction or last reform, the declared area and the construction materials of the flat or single-family home.
Values automatically calculated by insurers they are very reliable and they have an undoubted advantage for the insured, in the event of an accident, the company will never consider that there is a possible “underinsurance”. That is, the insured will always receive full compensation.
How to calculate content value
Calculating the value of the content to the cent is almost impossible, unless we have a lot of time and patience.
Insurers also have an automatic scale to obtain this value, which assigns a content value (for fully furnished homes with permanent residents) of between 200 and 250 euros per meter built.
However, if our furniture is of great luxury, or in the house there are high-value objects or cash in a safe, to be fully covered, these values must be declared to the insurer.
Now you know how to calculate the continent and the content of a Home Insurance without dying trying. But are you sure that the values reflected in your current policy are correct?
If not, in Euroteide Insurance, we put at your disposal our specialized mediators to review your Home Insurance, completely free of charge, and you can obtain personalized advice.