Home and property insurance
This is the cover everything else builds on: the flat or house itself, what is inside it, and your liability when something goes wrong in the direction of the neighbour.
What it covers
- The building or the interior finish of the flat. For a house, the whole building. For a flat, usually the interior finish, because the building itself sits under the apartment association policy.
- Household contents. Furniture, appliances, personal belongings.
- Liability towards third parties. The most common case in Estonia is water damage to the floor below.
Estonian insurers sell this in packages. The cheaper package covers named risks such as fire, storm, a leaking pipe and burglary. An all risks package also covers what is not on the list, and costs more for exactly that reason. Which makes more sense depends on the value of the property and how much risk you are willing to carry yourself.
Once the property is rented out, a lot changes
This is where owners in Estonia most often get caught out. Three things worth knowing:
1. You have to tell the insurer that the property is let
Letting a property increases the insured risk. If you have not told the insurer that the flat is rented out, the insurer may refuse to pay a claim. One major Estonian insurer puts it plainly in its terms: a building that is let is insured only if that has been agreed in the contract.
2. Damage caused by the tenant is a separate cover
Ordinary home insurance does not cover the tenant damaging the property. There is a separate add on for that, usually costing a couple of euros a month.
3. Limits on loss of rental income differ several times over
If a flat becomes uninhabitable after a claim, cover for loss of rental income pays the rent you do not receive. But for how long? Six months with one insurer, twelve with another, and a fixed sum of euros with a third. That difference can amount to thousands.
It is also worth asking about replacement accommodation. Some insurers cover it only for the owner and exclude the tenant explicitly, while others cover the tenant too. If you have a tenant, that difference matters.
And one more detail: the beneficiary named in the policy is the bank or the lessor, not the tenant. The question that actually matters is whether the insurer’s terms include the tenant among the insured persons. With some they do, with others they do not.
Ask for offers
Fill in the form and Anna-Liisa will get in touch. She advises as a partner of NB Kindlustusmaakler, an Estonian insurance broker. The service is free for you. We find offers from the insurers and send you a comparison by email.
Other types of insurance
- Apartment association insurance. Common property and association liability.
- Commercial property insurance. Office, retail, warehouse, production.
- Technical systems and equipment. Boiler, heat pump, ventilation, lift.
- Construction and renovation insurance. Contractors all risks cover.
- Legal expenses insurance. Rental and other disputes.