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How do I define and update my insurance capital?

Hired an insurance and need to define and update the insured capital? Learn how to choose this value and how to update it later.

10 Apr 20242 min

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How to define and update the insured capital?

The secure capital is the value that is defined with the insurer, when contracting insurance, as corresponding to the estimate of the value that will be needed if the insurance is triggered.  

You can update the insured capital in case of a claim so that when the insurance is activated, the bank has access to the value corresponding to the debt at that time. This way, the debt is completely settled.

In other words, initially, it defines a safe value when signing and hiring the product, but can update it during the contract's duration.

But on what basis are the parameters defined? For example, in the case of a multirisk insurance, the value of the insured capital must correspond to the property's reconstruction value, considering the type of construction or matricial value in the case of a building that will be demolished or expropriated.  

To do this, you must take into account all elements of the property, including the proportional value of the common areas (excluding land).

To update the insured capital value, it is the policyholder's exclusive responsibility, as the insurer cannot do it on their own initiative.

There are two types of capital updates for the insured: the one the policyholder has access to:

Conventional update - The safe capital is updated annually according to a percentage indicated by the policyholder (for example, the value of the insured capital increases by 5% annually);   

Indexed update - Secured capital is updated annually based on variations in IE (building index) and IRH (housing fittings index) indices.

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