Home insurance

An unexpected water leakage can be unpleasant, but it is nothing compared to a fire or theft. You should consider getting home insurance in order to alleviate the stress and worry of these situations.

Home insurance will protect your home and the property within it in the case of an accident. Its goal is to help you restore the situation prior to the accident and cover the expenses incurred to do so.

Insurers offer a service of home insurance so that you could insure your home. Make sure that the insurance contract also includes the property inside your house or apartment. Generally, the insurance of household property has to be agreed upon separately and you have to pay an additional insurance payment.

Home insurance can cover the building (e.g. foundation, walls, roof, interior), household property (e.g. appliances and furniture), responsibility for others (such as a broken water pipe that leaks into your neighbours home), and more.

In order to insure household property, insurers offer the following options:
  • items will be insured on the basis of a list, where these items are divided into groups and every group falls under a fixed insurance sum;
  • you list your household items piece by piece and the insurance sum is set based on that information;
  • the insurer will set an insurance sum, which will cover all the items and no list will be compiled.

Home insurance is offered by insurance undertakings, insurance brokers and agents. If you are getting a loan to buy a home, remember that the loan provider may offer you a chance to get home insurance from a certain insurer that they recommend, but this may not be the most beneficial option for you. You can choose the insurer who suits you best on your own. 

If something happens to your home or household property, notify your insurer immediately; they will provide you with information about how to proceed. If you fail to do so, the insurer has the right to reduce compensation or refuse paying it completely.

Always keep your insurance policy accessible as you can use it to find necessary contact information.

The amount of compensatory damages to be awarded should be assessed by the insurer immediately. In order to do so, they have the right to ask for additional information about the insured event and additional documents, if necessary.

There are several ways to make compensation payments. The insurer may cover the costs of repair works. If that is not economically feasible, the insurer will calculate the reacquisition value of the property (the price for purchasing a new object of equivalent value) or market value (the local average sales price of the damaged item at the time of the loss event) in order to pay compensation.

The period of compensating an insured event is included in the insurance terms and conditions.

Before signing a home insurance contract

  • think about against which potential risks you would like to insure your home (e.g. fire, lightning, storms, flooding);
  • make sure you are well aware of the typical conditions of an insurance contract;
  • check what are the exceptions of home insurance or the damages that will not be compensated (e.g. damages caused by pets);
  • learn about the safety requirements that you have to comply with, and your other commitments as a policyholder;
  • take enough time to browse different offers and select a solution that best suits your needs;
  • decide in what sum you want the insurance cover of your home and/or household property to be, and if the compensation restrictions meet your expectations;
  • find out how big is your own liability or the sum agreed with the insurer that you will be required to pay in the case of a loss event;
  • determine if and how you should notify your insurer of potential repair works and the accompanying changes (the insurance risk may increase as a result of repair works);
  • remember that you are required to get home insurance if you are buying your home with a loan.