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Although I prefer to focus on the positive aspects, sometimes it's worth glancing at negative examples to understand the importance of securing our assets. Reading a variety of news and content on the Internet, we have more than once encountered stories about families who have experienced traumatizing events, such as fires that have stripped them of all their possessions. At such moments, usually the community shows solidarity and organizes collections to help those affected by the tragedy. Of course, such actions are commendable and evidence of the cooperation and empathy. Nevertheless, it is worth being aware that there is a way to minimize the risk of material losses associated with such unfortunate accidents, thanks to the small annual insurance fees.Thanks to the wide range of coverage, insurance can cover virtually all of our property. This, in turn, will allow us to receive payouts that will cover losses ranging from the full value of the property to small equipment that may be damaged by, for example, an electrical surge. In this article, I will focus on discussing how to effectively take care of the protection of your property and how to protect valuable items in our home. So it's worth learning about solutions that will allow you to sleep soundly, knowing that our property is properly protected.
What is property insurance and how does it work?
An insurance policy for your home and property provides comprehensive protection against the effects of various fortuitous events that can cause loss or damage to your property and possessions. Such situations can include both fires and floods. When differentiating home insurance from home insurance, it is worth remembering the small details, especially if you rent an apartment. Most homes are located on plots of land, so under the insurance we can protect most of the elements in this space, such as garages, sheds, fences and other fixed elements. Basic home insurance, found most often in banks, covers the following events:
- fire
- explosion
- smoke and soot
- implosion
- fall of an aircraft (plane)
- fall of trees
- strong wind
- impact of a motor vehicle
- flooding
- hail
- driving rain
- snow and ice
- frost cracking
- earthquake
- landslide
- avalanche
- sound wave.
The final coverage depends on the general terms and conditions of insurance and the insurance company's offer.
Basic insurance coverage is designed to protect against the aforementioned events, but in most cases such protection may not be enough. When you're considering home insurance, it's also worth considering protecting property inside, such as furniture, household appliances and electronics, artwork or collectibles. All of these can be covered by building insurance, you just need to specify the sum insured accordingly, and in some cases a special agreement is required.
See the general terms and conditions of home insurance for details on when insurance becomes valid.
When choosing insurance amounts, we are primarily guided by the value of the house and property. In the next section, we will present the popular types of contracts and what an effective insurance policy covers.
The price of home insurance depends on the value of the property and all insurable assets, but is usually about a few hundred zlotys per year. This is a small price to pay for the certainty that in the event of a difficult situation you will receive the necessary funds.
What is and what does home insurance cover?
Apartment insurance works practically similarly to home insurance, but there are two different situations that require a different approach to choosing the right housing policy.
Homeowners
If you are the owner of an apartment, the insurance is practically identical to that of a house. It includes protection for walls and movable property, except for garden items. In such situations, it is the property owner who is responsible for all insurance relating to the building. Apartment belongs to the community / city / you rent it. In this case, the insurance of the property, that is, the walls, rests with the rightful owner, for example, the person from whom you rent the apartment. On the other hand, you can insure our movables and outlays, such as paint, wallpaper or new windows. It is worth noting that in the case of apartment insurance, you will receive a compensation ONLY for what belongs to you. This is especially important if you rent an apartment and some of the equipment and furnishings are owned by the landlord. If you rent to someone or rent from someone else, it is very important to have private liability insurance with an extension to rent. In the event of damage, it is necessary to carefully read the insurance coverage to adequately protect against potential losses.
Fixed items vs. movables
To answer the question of fixed elements and movables, it is worth introducing an additional division: the walls themselves.
According to insurance companies' records, walls include the foundation, walls and roof.
Fixed elements, on the other hand, are all home furnishings that have been permanently attached.
Household movables, also known as moveable property, are all items that can be easily moved without the use of force or tools. This category encompasses a wide variety of items, but some of the most popular include: personal items, cash, valuables, furniture and appliances that are not part of a built-in, sports equipment, bicycles, clothing, computers, cell phones and even pets.
To better understand the difference between fixed elements and movables, you can imagine what would happen if you picked up a house or apartment and shook it up side down.
Such a clear delineation is necessary to know which elements are covered under the insurance, how to choose the appropriate sum insured, and in what situations the insurance works.
Elements of a home and apartment insurance contract - what does the coverage include?
The final insurance quote depends on the insurance company chosen and our individual needs, but most often property insurance includes the following:
- Insurance against fire and other random events, such as groundwater seepage, plumbing leaks or earthworks.
- Burglary and robbery insurance, protecting against losses resulting from the theft of home movables and damage to doors and windows during a break-in.
- Home assistance, allowing access to specialists in emergency situations, such as electrical grid failures or plumbing leaks. Glass breakage insurance, covering all glass surfaces in the home, including windows, mirrors and display cases.
- Liability in private life, which protects against claims by third parties suffering damage to our movable or immovable property. This also covers pets, which were previously defined as movable property.
- Insurance for garden elements, allows to protect gazebos, brick barbecues and fences from theft or damage. Additional insurance for outbuildings is also possible.
- Surge insurance, which protects our electrical equipment from damage resulting from power surges or lightning. However, it is worth carefully checking the scope of protection offered in our policy.
It is also becoming increasingly popular to buy "all-risk" property insurance, i.e. covering the widest range of protection against various potential perils, except those specified in the insurance documents. This allows us to cover damage that we don't yet know could happen.
Liability insurance in private life
Liability insurance is an excellent safeguard against third-party claims. Its usefulness covers a variety of situations not only in the house or apartment, but also during everyday activities such as bike rides.I present some real-life examples:
- In winter, you received guests, however, did not manage to clear the snow from the sidewalk, resulting in an accident and a broken arm of one of the people. In such a situation, liability insurance will cover claims of injury.
- Your dog ran into the street because you forgot to close the gate, and caused a cyclist to fall. In this case, liability insurance also enters the scene.
- While riding a bicycle, inattention causes you to run into someone.
- In a rush, you forget about the open tap, causing flooding in your neighbor's apartment.
In other words, third-party liability insurance will protect you in the event that you cause damage to a third party.In some situations, it is worth considering extending third-party liability with additional elements, such as tenant agreements, to protect your tenants and your apartment from possible damage caused by them. This solution is especially important if you rent property.
Is property insurance compulsory?
Property insurance is not legally required, but in certain situations it can be imposed: When we take out a mortgage, the bank usually requires a corresponding policy with an assignment. In the event of damage to the property, the policy will cover the cost of the loan. When renting an apartment from someone, the landlord may require us to have renter's liability insurance, which protects not only the apartment itself, but also the neighbors. Although property insurance itself is not mandatory, I strongly recommend taking it seriously. This way, in the event of an unfortunate event, we will not have problems receiving any benefits. This prudent approach will allow us to sleep soundly, knowing that our property is properly protected.
Is it worth it to get home insurance from the bank?
The answer to this question depends on many factors. In most cases, bank policies focus mainly on insuring the property in the amount of the loan and rarely offer additional collateral. If you are offered home insurance by the bank, it is recommended to carefully read the contract and any exclusions. It is important to remember that the bank can not force you to buy a policy from them. Such action is illegal and you can report such behavior. You have every right to choose where you insure your property, and you should choose the option that best suits your needs and preferences. It is worth comparing offers from different insurance companies to find the best and most suitable policy for you.
How to select property insurance well?
Before signing an insurance contract, it is a good idea:
- Carefully consider what you want to cover and the maximum sum insured to take out a policy for.
- Compare quotes from different insurers.
- Read the general terms and conditions of insurance or ask about the most important issues.
- Carefully check for exclusions for you.
With this kind of care, you will be assured that your assets are properly protected. A properly tailored insurance policy will give you peace of mind, knowing that you can count on support and financial protection in the event of an emergency.
If you need help selecting the best policy, contact me and we will protect your assets well together.
