Property and household insurance: how not to be underinsured
· 5 min read
Many people took out home insurance years ago and have not looked at it since. Meanwhile, property and construction prices have risen significantly, so an old policy may no longer be enough.
Property or household?
- Property insurance covers the building itself: walls, roof, windows, wiring and fixed built-in equipment.
- Household insurance covers your things: furniture, electronics, clothing, bicycles in the pram room.
- A flat owner needs both. A tenant usually only the household; the owner insures the property.
What underinsurance is
Underinsurance (podpojištění) occurs when the insured sum in the contract is lower than the real value of the property. The insurer then reduces the payout proportionally. If your flat is insured for half of its real value, you may receive roughly only half even for a smaller claim.
Do not forget liability
Liability insurance in everyday life covers damage you cause to others. A typical example is flooding the neighbour below you. Repairs to their flat can easily run into hundreds of thousands of crowns, and without insurance you pay out of your own pocket.
Insurance and a mortgage
With a mortgage, the bank requires property insurance and its pledge (vinkulace) in its favour. Household and liability insurance is not mandatory, but it pays to arrange it at the same time.
How Tenaryia can help
We check your current policy, warn you about underinsurance and compare insurers' offers. If a claim occurs, we help you report it. Consultations in Czech, Slovak, Ukrainian and Russian, free of charge.
Information is indicative and valid as of the publication date; specific conditions vary by bank or insurer.