What home insurance protects
Insurance of a house or apartment reimburses the cost of restoring the home and replacing belongings after a fire, flooding, theft and other events included in the contract. For most families the home is the most valuable asset, and repairs after a serious incident can require substantial funds. A policy is needed by owners of apartments and private houses, by tenants who want to protect their belongings, and by mortgage borrowers: the bank usually requires the pledged property to be insured.
What can be insured
- Structural elements — load-bearing walls, floors, roof, foundation. For an apartment they are usually relevant only in the case of serious destruction; for a private house they come first.
- Interior finishes and utilities — wall, floor and ceiling coverings, windows, doors, plumbing, electrical wiring, heating.
- Household contents — furniture, appliances, clothing and other belongings. Valuables, works of art and collections are usually insured separately and require an inventory.
- Outbuildings — saunas, garages, fences on the plot of a private house.
- Liability to neighbours — compensation for damage if flooding or fire from your home has damaged someone else's property.
Main risks
A typical set of risks includes fire, lightning, household gas explosion, water damage from utility systems, natural disasters, burglary, robbery and unlawful acts of third parties, as well as objects falling onto the house. Earthquake in the country's seismically active areas, including Almaty, is often included separately and affects the cost. Programs can be "boxed", with a fixed set of risks, or individual, where the sum and cover are tailored to a specific property.
What is usually not covered
- normal wear and tear, dilapidation, gradual deterioration and mould;
- damage from repair and construction work, unless it is included in the contract;
- intentional acts of the owner and family members;
- damage resulting from breaches of fire safety rules or of the rules for operating systems;
- theft without signs of forced entry, if the door or windows were open;
- cash, documents and valuables without separate agreement;
- damage during a period when the home is unoccupied for longer than the period set by the rules.
What determines the price
The price is affected by the type of property — apartment or house — the material of the walls and floors, the year of construction, the floor, the condition of utility networks, the presence of an alarm and security, the region and seismicity, the set of risks, the sums insured for each element and the size of the deductible. Regular occupancy and protective measures reduce risk and, as a rule, the cost of the policy.
How to choose a program and what to check in the contract
- Sum insured — for finishes and contents it is better to determine it by replacement cost, not by a figure set "by eye". If the sum is understated, the payment may be reduced proportionally.
- Limits — whether there are restrictions on individual risks or types of property, for example on appliances or on liability to neighbours.
- Deductible — its size and the cases in which it applies.
- Insured location — the exact address and the list of insured outbuildings.
- Period and payment procedure — repair on the insurer's referral or cash compensation, and whether depreciation is taken into account.
- Policyholder's obligations — notifying changes in risk, for example renovation or letting the home out.
What to do if an insured event occurs
- Take steps to reduce the damage: shut off the water, switch off the electricity, call the emergency services.
- Obtain supporting documents: a report from the management company or the homeowners' association in the case of flooding, a fire service certificate, a police report receipt in the case of theft.
- Photograph the damage and do not throw away damaged items before the inspection.
- Notify the insurer within the period stated in the contract and agree the inspection date.
- Prepare documents on title to the property and the value of the belongings.
How Polis Re can help
Polis Re helps determine the right sums insured, compare the programs of different insurers by risks, limits and exclusions, and avoid overpaying for unnecessary options. You can find the approximate cost in the home insurance calculator, find out about protection against neighbours' claims in the liability insurance section, and look up unfamiliar terms in the glossary. For an individual selection, send a request to the broker.
