Insurance is a way to protect assets or property. There are different types of insurance, including fire and allied lines, electronic services, machinery, and combined policies, among others.
SANTO DOMINGO – Property protection is also a key component of the real estate sector. A variety of insurance companies are flooding the market, offering options designed to secure real estate assets.
Investors and purchasers have a wide range of insurance companies available, whose brokers try to persuade them every day to purchase policies that reduce the uncertainty generated by the possibility of an eventuality such as a natural phenomenon, fire, among others.
But…what are the limits of property insurance? Those who buy a home are generally familiar with the mortgage insurance that banks require as a condition for granting loans.
However, Michael Harper of William Harper and Associates states that insurance companies have a wide range of policies available for homeowners to protect their property.
Insurance is a way to protect assets or property. There are fire and allied lines policies, electronic equipment insurance, machinery insurance, combined policies, among others, explains the broker, whose company has been selling insurance in various sectors for almost 20 years.
It is in the commercial sector where the greatest precautions are taken, with the acquisition of policies that insure assets against fire, debt, or other damages. This includes inventory, machinery, and liability coverage for damages to third parties.
"He cites the comprehensive property insurance policy, which is designed for high-end properties ranging from one million dollars upwards and covers everything, although of course it always depends on the insured value," he explains.
The insurance expert understands that it is a mistake to insure only the building itself, as this leaves the property unprotected against unforeseen events such as hurricanes and earthquakes. The Dominican Republic, in particular, should have a system in place to insure investments, given its vulnerability to natural disasters.
“The job of brokers is to help our clients, as intermediaries, advising them on the options the market offers and their scope, and supporting them with their claims. An insurance policy has many conditions; the coverage needed for a property you rent is not the same as for one you buy,” Harper explains.
He adds that his job is to carry out the review of all operations, whether it's a business, to find the best coverage, and the same for housing, because the policies are made individually, each one is made individually.
Demand for these types of insurance isn't very high, and in most cases, only the amount required by banks is used for home insurance. "These types of policies are more common in the industrial sector; there's very low penetration for individual homes.".
Although he acknowledges that many insurance policies may seem expensive, it is a necessary resource because it guarantees that your assets are protected.
