Are you the new owner of a property? Secure your investment.

One of the most important investments in our lives, is represented by the acquisition of immovable property. When purchasing a house, you may need a loan from a bank, when this happens a lot of requirements must be meet for you to get the loan, among these are the fire insurance and life insurance.

In these cases, there are companies like Palm & Company, which are insurance brokerage companies, responsible for the very best backup options that fit our needs as owners of the property.

This time we will talk about the fire insurance.

Alfonso Palma, CEO of Palma & Company, says that when purchasing a policy of this type, it is important to adjust it to the actual price of the property, this means that if the property is worth $ 100,000 the insured amount should be approximately 80% of that amount, lets say $ 80,000 therefore the insurance has no relation to the loan value but it has with the value of the property.

Palma advised us to not fall into the game of getting an insurance way highier than its real value, this is known as Supra Insurance, which goes against the laws and ethics. The other point that should be avoided is to secure the property for a lesser amount than the actual value, this is known as Infra Insurance; while it is true that the cost of the insurance may vary in our favor, if an incident happens and it is among the policy coverage, the repayment value will be less than the investment, which would put at risk our capital.

To determine the actual value of an asset, we must make an appraisal. When the property is new, it is a much simpler process, since it is supposed that the promoter and the bank should already have it. When the property is used, this suffer deterioration over time, so the real value of it will be affected in a negative way.Also it can happen the opposite effect, that the property has experienced a recovery on its value by upgrading it. To learn more about appraisals, please read our post Appraisals, a heavyweight decision.

To conclude, you should have an insurance to support your investment, and to better understand the options on the market is advisable to rely on the services of a brokerage firm as Palma & Company, which besides providing advice, will surely expand our universe of options to support this important decision to become owners of a property.

If you want to hire the services of Palma & Company, you can do so by mail:, through its website: or phone number +507 396-1010. Instagram:palmacompany

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