Investing in Real Estate Safely

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Investing in real estate safely

How to ensure the purchase of a property?

A real estate purchase often represents a new stage in life! New neighbors, new routes, new habits, and a personal cocoon to mark your personal touch!

To settle in your new home with peace of mind, it is important to understand the risks and cover them appropriately.

What to do in case of glass breakage? What to do in case of theft of construction materials? How to protect my family in case of disability?

In this article, we provide you with advice and best practices regarding the protection of your purchase and your home.

From basic insurance to the benefits of the 3rd pillar, follow the guide!

1. Insure against disability and death risks

During the financing stage, the calculation of conditions (rates, mortgages, loan duration) takes into account your situation at the time of purchase. The main criterion is the ability to repay the loan to the bank: the household income is carefully analyzed.

Unfortunately, sad events can impact your real estate purchase. It is then necessary to cover the risks of disability and death by asking how the loan repayment can be guaranteed in such circumstances.

Why?

To prevent financial difficulties that would hinder the maintenance of the loan and thus lead to the obligation to part with it.

Indeed, the theoretical scenarios that underpin the legal requirements related to mortgage debt are well above the actual market costs.

For example, a couple owns their home and faces the disappearance of one spouse (death) or a drastic reduction in income (loss of earning capacity). If, in practice, the financial situation would allow continuing the payment of interest and amortization, in theory, the situation is quite different: the household's financial situation no longer meets credit requirements (the ability to meet theoretical charges is no longer assured).

How?

In case of repayment incapacity, the creditor will demand the sale of the property, often within very short deadlines. It is easy to imagine that the sale conditions are not advantageous (selling quickly = selling without making a profit or even making a loss).

To cover this risk, it is necessary to protect yourself with disability or death insurance.

Several solutions exist and they provide a response guaranteeing loan repayment and protecting the surviving member(s) from a rushed sale or potential financial difficulties.

Which insurance?

– Death insurance guarantees the repayment of amortization costs and mortgage interest. The insurance pays out a capital sum to the survivor(s) or pays premiums.

– Disability income insurance protects your household and your home when you face illness or accident. A pension is then paid, allowing you to maintain your standard of living and thus repay your loan.

– The 3rd pillar which includes these insurances and also allows you to benefit from tax deductions.

2. Insure the construction

When you obtain building permits or carry out work, you are responsible for the site, even if you hire contractors.

Why?

It is essential to cover yourself against any damage, theft, or potential incident that may occur on your site.

How?

To cover damages and financial costs, it is necessary to subscribe to Construction Insurance.

Which insurance?

• – Construction work insurance

It covers financial consequences in case of an incident during construction, theft of materials, as well as the craftsmen involved in the site.

– The civil liability insurance of the project owner

The latter is responsible for all damages caused by the construction – to people and property – and thus benefits from insurance covering these risks.

3. Insure the building

Water damage, incidents, or bad weather are unpredictable events. While it is not possible to avoid them, it is possible to cover them.

Why?

The financial costs to repair water damage, fire, or weather damage can be significant.

How?

Thanks to appropriate insurance, it is possible to cover several types of risks, even the most unusual, such as damage caused by a rodent!

Which insurance?

Building Insurance guarantees the owner coverage of risks and coverage of costs (evacuation, repair, replacement, etc.)

4. Insure your household

Within your home, you keep personal belongings. They may have sentimental value (e.g., family jewelry), functional value (e.g., television), or monetary value (e.g., artwork). All these items can suffer damage or theft.

Why?

In case of an incident, good insurance will allow you to replace or repair them at no cost.

How?

Whether you are alone, a couple, or a family, household insurance is your daily companion. It covers claims and offers solutions and auxiliary means.

Which insurance?

Household Insurance covers several aspects and can be adjusted according to your needs, for example:

– Household inventory (coverage against theft, damage, etc.)

– Civil liability

– Legal protection

– Pets

Are you a homeowner or planning to buy real estate?

Our experts are available to meet you for a free and non-binding consultation. They will study your particular situation and advise you to make the best decisions.

Contact us via the form or at our contact details below!

+41 22 342 46 73 | hello@uneo.ch