Why Property Insurance is Essential When Buying A Home In Trinidad

Property Insurance in Trinidad

Congratulations! Property Insurance in Trinidad is essential, especially when you have received confirmation that your mortgage has been approved, and your offer on the house you are interested in buying was accepted. The only thing left to do is get the insurance you need to ensure no mishaps between this time and the time you move into your new home.

Property Insurance for homeowners – The insurance you need

Consequently, homeowners insurance is the only type of insurance you will need when applying for a mortgage. Property Insurance covers the structural elements of your home and protects it against damage. The walls, roof, floors, and fixtures, as well as fittings and fittings. This insurance must be in place and cover the entire value of the property.

This insurance is necessary because, for example, if a fire breaks out in your house, your house’s value would drop, and the loan amount you borrowed wouldn’t pay.

Trinidad Real Estate can offer coverage through their Group Homeowner’s Property Insurance at competitive rates through our network. At the close of your mortgage, you will be required to pay one year’s premium in advance. You will receive an Insurance Certificate detailing your coverage. For subsequent years, the premium is divided into affordable monthly payments that can be added to your mortgage installment. This coverage can be obtained on your own, but you must have it before funds can be disbursed to purchase your property.

The contents of your home are not covered by this Homeowner’s Insurance. You will need separate insurance to protect your belongings. Your policy will pay for all losses, liabilities, and damages that occur during the period you have insurance. The duration of your insurance policy is set by you. The end of the period may see renewal. We will notify you in writing if there are any changes to your policy or the premium.

Here are some steps to make sure your property is fully insured at replacement cost

First, determine the replacement value of your house before you apply for homeowner’s insurance. This information can be found in your valuation report after purchasing your home or from a Quantity Surveyor following the acquisition.

The condition of your mortgage is that you maintain the insurance coverage on the mortgaged properties at their total replacement value throughout the term.

The amount it would cost to repair or rebuild your house using materials of the same quality as the original material used to construct your home. Full replacement cost coverage will cover any claim.

If a claim is made against you and your property is not insured, you will not receive any financial compensation.

If your property’s replacement cost is $1,000,000 and your current insurance coverage is $300,000.00, the insurer will pay $30,000.00 to cover a 10% claim for flood, fire, or other natural disasters.

(Its Insured value over market price times loss; this instance it is 300000/1000000 by the value of loss) This is 10% of your existing home insurance coverage, significantly lower than they claim. You should ensure that your home is properly insured.

It is recommended that you have a replacement cost valuation every three years to make sure your insurance coverage covers the replacement value.


Other types of insurance to consider

What happens if your job is lost or you cannot work due to poor health? Consider giving your family and yourself the assurance that your loans will be paid regardless of what happens.

Lenders may require that the borrower has life insurance to ensure that the loan will be covered in case of death. While life insurance does not need to be purchased by Trinidad Real Estate, we recommend it in order to protect your loan balance. Our Life insurance protects your Family and prevents your Family from having to pay the mortgage loan balance in the event you are untimely.

 You are only eligible for benefits if your temporary disability lasts 30 consecutive calendar days. You may be subject to special conditions. Learn more to make an informed decision.


Here are some tips to help you choose the right insurance

  • Get a quote from us. Based on the estimated replacement value, indicate the coverage you need. To ensure that these risks are covered, you should indicate whether your property is protected by additional measures, such as retaining walls, or if it is in an area where flooding is possible.
  • Take a look at the perils that are covered. Property insurance covers a select number of weather-related afflictions. This includes damage from fire, the smoke, wind, and other natural disasters. The structure and contents of property insurance can also be covered against vandalism or theft. If someone other than the property owner, or renter, is hurt while on the property and decides that they want to sue, property insurance provides liability coverage.
  • Ask around. Ask for feedback from Family, friends, and coworkers. You can also ask for referrals. Ask about the service provided and how fast the claim was processed and paid.
  • Check with your mortgage provider to confirm if insurance coverage is available through them. It can be incorporated into your monthly payment, and then they will make any subsequent payments to the insurance company on your behalf at the renewal date. Once your renewal is complete, a new Certificate will be issued for your records each year.

You must make your dream of homeownership a reality by taking on the responsibility of protecting and maintaining this valuable investment. Although becoming a homeowner can be an exciting prospect, there are also great responsibilities and high costs.

It takes a mental shift to accept that homeownership is your responsibility. This includes researching and making sure that your most valuable asset is protected.

Contact us to get help with your insurance now! 

Join The Discussion

Compare listings