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How to sell insurance and Why do I need insurance

An insurance or insurance product is a service that cannot be touched, held in your hands. It is essentially air. But exactly until the insured event occurs. And this makes such a sale more difficult - not every potential buyer sees the meaning and need for such an acquisition. Nevertheless, the challenge before us is how to sell insurance , which is discussed below. A few points that will help to cope with the difficult task of selling an additional financial protection product . How to sell insurance Expert Image Buyers making a purchasing decision pay attention, among other things, to the seller himself. It is in this that it is worth looking for the reason that one manager is being bought and the other is not. If the client sees an expert in the manager, then his proposals will be perceived in a completely different way. An expert is not a person with whom you can talk about such trifles as price or that " this is a game in which I do not participate ".
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Equity insurance for shared construction. Part 2



In the first part of the article, we told future and present Shareholders about an excellent tool to protect their money invested in shared construction. In addition to state protection methods (registration of share agreements in construction, the law on shared construction, etc.), Equity insurance holders can insure their investments. 

Below we will talk in more detail about the procedure and nuances of the Risk Investors risk insurance. 

The issuance of an Equity insurance policy for this type of insurance is preceded by a legal examination of the title and permit documentation for shared construction. 

The purpose of the examination is to determine the degree of risk of the Investor and the possibility of accepting insurance for his contract for this Object. 

The examination is carried out by the insurance company within a few days. As a rule, this procedure is free for a potential Insured. 

The result is the decision of the Insurer to take or not to take this risk of the Shareholder on insurance and the insurance rate, which is determined by the degree of risk and the term of insurance.


The term Equity insurance depends on three factors:

  • Stage of construction (the term of insurance cannot be shorter than the term of completion of construction);
  • Dates of transfer to the Investor of the constructed apartment after the delivery of the house (indicated in the DDU);
  • The degree of risk for this Developer and for this particular Facility of shared construction.
Having added the first terms and adding a coefficient depending on the third, we get the insurance period for which the insurance policy is issued immediately. 

The insurance period is determined by the insurance company.

The insurance risks for this product are usually:

  • Untimely commissioning of the shared construction facility;
  • "Double sale";
  • The bankruptcy of the Developer;
  • The unsuitability of the property for exploitation.
The Finnish Equity insurance policy of Interest holders is paid immediately for the entire insurance period. 

Only in rare cases, the Insurer agrees to divide the insurance premium into several installments in increments of not more than a couple of months.


The Equity insurance payment upon the occurrence of an insured event occurs according to the following scenario:

  • The policyholder submits to the insurance application on the occurrence of an insured event (for example, delayed delivery of the house), as well as a document confirming this (in this situation, a certificate from the Fed);
  • The insurance company checks the fact of the given application of the Insured;
  • The insurance company makes insurance payments to the account of the Insured (in a situation when the case is recognized as insurance);
  • The policyholder refuses in favor of the insurance company all rights of claim to the Developer;
  • The Equity insurance company issuing the Developer for compensation for its losses in the subrogation order.
It is important to conclude our article by noting a couple more points. Firstly, it is possible to ensure the financial risks of acquiring not only housing under construction but also commercial space under construction. 

Secondly, you can contact the insurance company immediately before joining the shared construction, and after it. 

Even if you signed the DDU a year ago, it is still not too late to ensure your risks. The only reason you may be denied this is too high a risk level for this Object. 

Thirdly, the Insured Interest-holders in case of delays in the delivery of their Object can extend their insurance contract. 

To do this, they pay an additional fee for the extension (this possibility is specified in the insurance contracts of most practitioners with this type of insurance company). 

Fourth, the average market value of an Equity insurance policy for ensuring financial risks in shared construction is 3-4% of the price of an apartment purchased. 

In conclusion, we want to wish both future and present Interest-holders a successful completion of their participation in shared construction and receiving long-awaited new apartments! And in order to save your nerves for the entire period of shared construction, insure your risks with Real Estate Investors and be confident in the future!

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