Home insurance should be a must for every property owner, regardless of whether they live in their own apartment/house or rent it out to someone else. The owner should always consider which type of protection to choose for home insurance to avoid nasty surprises.
In a previous blog post, we explained what home insurance and Rendin protection are and how they do not replace each other but complement each other. With the help of ERGO experts, we will give a more detailed overview of home insurance. In which case and which protections should you choose?
The primary purpose of insurance is to protect people's property and help compensate them in case of damage.
If a person has home insurance but not liability insurance, they may be in for a very bad surprise in case of a problem. For example, if a water accident happens, the person responsible has to pay for the apartment repairs for the neighbours below.
If you already have a valid home insurance agreement, we recommend reviewing the insured amounts of home property and liability insurance. With ever-increasing prices, the current insured amounts may no longer be sufficient to cover possible losses.
Many people mistakenly think if an apartment or house is insured, the protection automatically extends to the objects inside. However, the home property needs separate insurance coverage. This is necessary when, for example, a large-scale water leak or a fire occurs. In this case, it is not only the house or apartment that suffers damage – the objects inside can also be destroyed.
Home property insurance covers furniture, clothes, bicycles, equipment, etc. In addition, the protection is extended up to 2000 euros when travelling within the European Union: the items you bring with you – such as a laptop, phone, and camera – are included in the insurance.
Tip: if you insure your home property, choose a sufficiently sizeable insured amount that would cover their approximate value.
Liability insurance is especially necessary for people who live in an apartment building. This means that the insurance will cover the damage if something has happened to the property of a third party (usually neighbours).
The most common example is water damage caused by an old water boiler or a broken pipe: the apartment where the problem started and the living spaces of the surrounding residents are damaged. If you live on a high floor, the water can reach even the ground floor, so the cost of such damages often comes to tens of thousands of euros. If you do not have liability insurance, you must compensate the repair costs of the neighbours with your funds.
However, liability insurance is also essential for those who live in their own house. For instance, a tree falls from your property to the other side of the garden and damages a neighbour's parked vehicle. Or somebody may fall on a slippery road by your fence and require medical attention.
Also, cases can happen where someone else's property is damaged due to the actions of you or your family members. For example, if you break an item on sale in a store while shopping, your child accidentally scratches a neighbour's vehicle, or while grilling outdoors, a spark flies into the next garden and causes the woodshed to burn down.
Good to know: extended liability insurance covers the policyholder and damages caused by their family members to others.
Tenants can conclude a home property insurance and liability insurance agreement to protect the personal belongings of themselves and their families and to cover third-party damages.
Home property insurance compensates for damage if personal items (for example, sports equipment, computer, or telephone) have been stolen or damaged due to an accident.
Liability insurance is helpful in case the tenant causes damage to their neighbours in the rental home. For more information, see above.
Important: the tenant cannot insure the rental home they rent. The property owner must always do this.
In a rental relationship, both parties need protection – the landlord and the tenant. Rendin gives the owner a guarantee of rent, utility payments, and property protection, and the tenant can rent the apartment/house without a deposit. In addition, both parties are supported throughout the agreement with free legal advice should any disputes or concerns arise.