Apartment association insurance
In an apartment building the roof, the stairwell and the risers are not the responsibility of any single owner. They are common property and insuring them is the job of the apartment association. The Estonian Insurance Association estimates that about half of the apartment associations in Estonia have no cover at all.
What the association policy covers
Common property. Foundations, external walls, roof, load bearing structures, stairwells, cellars, balconies, external windows, the lift, chimneys and the shared technical systems: electricity, water, heating, ventilation and security. These days also solar panels and small structures such as the bin store, the playground or the barrier.
Association liability towards third parties. This is the part people rarely think about until something happens. It covers snow and icicles falling from the roof, an icy pavement in front of the building, and someone slipping in the stairwell. Some insurers extend the cover to damage between apartment owners as well.
Three things to ask before signing
Is a board member’s personal liability covered?
No, and this is worth knowing. Apartment association liability insurance covers the liability of the association as a legal person towards third parties, not the personal liability of a board member towards the association. In the terms of one large Estonian insurer the board, the administrator and the building manager are explicitly excluded from the insured persons. Directors and officers cover does exist in Estonia, but it is a separate product and most insurers do not offer it to associations.
How old is the pipework?
Several Estonian insurers exclude damage caused by pipework more than 35 years old. If the risers in the building have not been replaced, that is worth discussing before you sign, because that is exactly where the most expensive water damage happens.
Is a renovation planned?
If the building is about to be renovated, ordinary property insurance will not cover damage that occurs during the work. For that there is separate construction insurance.
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
- Home and property insurance. A flat or a house, contents, letting.
- 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.