Is the property insurance an obligation?
In relation to real estate, we can talk about the obligation to purchase a policy in the case of farms, but not all – only farms with a total area exceeding 1 hectare must have agricultural insurance.
It is a mistake to believe that it is necessary to insure the property with a mortgage loan. The bank is not an entity that can impose on us the purchase of any insurance product. However, it has the full right to make the granting of credit conditional on the purchase of a policy. We can always refuse, but then we will not get a loan.
The same is true for travel agencies, where we buy trips, where the acquisition of at least a minimum travel insurance is a condition that must be met in order to go on a trip.
What does the price of property insurance of a house or apartment depend on?
The price of a home insurance policy depends on many different factors, but the most important are the value of the property and the scope of protection, i.e. the number of risks in the base and extensions. Not without significance are also such issues as:
insurance history and the number of damages in recent years;
type of construction and storey;
formal and legal issues, such as ownership, tenancy or business activity;
number and age of tenants;
own security – refers to theft risks;
degree of flammability of the structure and roofing.
How much does property insurance cost for a house and apartment?
A home insurance policy may cost 100 PLN or several thousand PLN, but it is usually 200-300 PLN per year. The more expensive property we want to insure and the broader the protection, the more it will cost. The amount of the premium can be easily calculated by using an insurance calculator. This tool allows you to check offers for a specific property in many different companies, and entering the necessary data (property parameters and scope of protection) will take us literally a few minutes.
1. property insurance refers to the following policies: housing, motor and travel insurance
2. when buying property insurance, be careful about under-insurance and over-insurance
3. the property policy does not give the possibility of obtaining double indemnity
4. the compensation in the property insurance policy may not exceed the real value of incurred losses
FAQ – frequently asked questions about property insurance
For how long should I buy a property insurance for my apartment or house?
Typically, homeowners policies are purchased for one year and then the contract is extended or the insurer is changed. The insurance company should also have no objections to a longer period of insurance, e.g. 2-3 years, but will not necessarily agree to a policy that expires after a few months. Top-down regulations do not regulate this issue, so the insurance term can be determined individually.
What kind of property insurance to choose for a mortgage?
Banks for mortgage require a basic housing policy, which protects the walls and possibly fixed elements against random events. Such insurance can be extended, thus protecting not only the interests of the lender, but also the property owner. It is worth considering buying such extras as: home movables, burglary, third party liability in private life or Home Assistance package.
What kind of property insurance for a rented apartment?
Lease relationship is a situation, in which you can buy two policies for the same property, one for the owner (tenant) and the other for the tenants (landlords). In the first variant, the insurance should protect mainly the walls and fixed elements against fortuitous events, and have such extras as Civil Liability in private life or Home Assistance package. The policy for tenants, on the other hand, should financially secure their movable property and investment outlays (funds spent on renovation), as well as include liability of the landlord. Insurance companies have special offers dedicated to tenants and landlords.
What is a property insurance for a house under construction?
Property insurance for a house under construction has a narrower scope of protection, which affects its lower price. It provides financial protection mainly for walls and fixed elements against the effects of random events. It may also include home movables, mainly materials and tools used at the construction site, but only at the moment, when the property is in a minimum, raw closed state. It should be noted that the property insurance for a house under construction also applies to buildings under reconstruction, extension, superstructure or during general overhaul.