If you pay mortgage insurance on a home purchased with a loan, you will have nothing when it comes time to repay the loan. The reason is that home insurance only provides risk coverage for the amount financed and for the duration of the finance.
This means that your home, whether mortgaged or not, should have individual home insurance, especially in countries like the Dominican Republic, where hurricane vulnerabilities are widespread, and even more so now with climate change, or risk.
Insurance for real estate acquired with loans is considered obligatory for the user, because the financial entities that borrow the resources necessary for the purchase insure the borrowed amount and pay it upon signing the contract, while individual coverage is paid annually and is voluntary.
The most suitable companies to establish a home insurance account are insurance brokers, who establish the client’s relationship with a specific insurance company.
There are 33 insurance companies and 262 registered insurance brokers in the country.
After the pandemic, with digital transformation, it has become possible to fill out an online form and buy digital insurance. However, it is important to keep in mind that you should have the home appraised, i.e. know the value of the building and other information before seeking to contract fire, theft, furniture and even pet or pet insurance. the home.
Home insurance calculations depend on the value of the home and its condition, among other factors.
There is no insurance culture in the country and it is important to assume, given the country’s vulnerability and the effects of climate change, explained today insurance expert and advisor to the Board of Directors of the Dominican Insurance and Reinsurance Chamber (CADWAR), Miguel Villaman.
Villaman said that in the Dominican Republic there are only 17,000 people voluntarily insured, and more than 60% of them live in a second home, generally located in vulnerable places, such as beaches, mountains and other occupations for leisure and rest, which are fragile.
The expert participated as a speaker in a seminar and workshop held at the training school of the Insurance Regulatory Authority.