Does Your Home Insurance Meet Today's Needs?

Insuring your property is not something you should view as another tedious financial expense. Insurance helps cover unexpected costs, and in case of major damage, you'll be grateful that you decided to protect your property.

According to the Estonian Insurance Association, 472,000 people decided to insure their homes in 2024, with over 80% of Estonian homeowners having chosen insurance. IIZI property and personal insurance product development manager Pille Plees reminds us why you should insure and what to consider in the process.

Insurance provides peace of mind

"During economically unstable times, many consider cutting expenses, but giving up insurance can actually mean greater financial risk. In case of unexpected damage, insufficient coverage can lead to a difficult situation where repair or replacement costs must be covered entirely from your own pocket. This can significantly impact daily living and bring about a substantial financial burden," says IIZI property insurance product manager Pille Plees, noting that, for example, a storm can damage a home's roof, causing extensive water damage. "If insurance coverage is lacking, repair costs can amount to thousands of euros, which you'll have to pay from your own pocket," she adds.

"If insurance coverage is lacking, repair costs can amount to thousands of euros and must be paid from your own pocket."

It's worth carefully reading through insurance terms and conditions

Home insurance provides protection against major risks, such as fire, natural disasters, water damage, theft, and vandalism. It's recommended to also add liability insurance and carefully consider the sum insured for your household property. "When living in an apartment building, liability insurance is especially important, as it covers damage that may occur to neighbors due to pipe leaks or other unexpected accidents," explains Plees.

While traffic insurance compensates the injured party for car repairs, liability insurance related to your home covers damages if a pipe leak originating from your apartment causes damage to the neighbor below, your child scratches a neighbor's car while riding a bike, or a tree growing in your yard falls onto a neighbor's roof during a storm.

You should also not forget household property, whose value may turn out to be greater than initially thought. Household property includes, for example, smart devices, furniture, household appliances, art, dishes, clothes, shoes, and sports equipment. Plees emphasizes that, first and foremost, it's important to remember that insurance helps in case of an unforeseen and unexpected event. For example, normal wear and tear or soiling of a building and household property, or long-term processes such as house rot and loss of items are not unexpected.

Often it's assumed that comprehensive risk insurance covers all possible damages, but every contract always has exclusions or limitations. For example, not all insurance policies may cover damage caused by rain penetrating through building structures, weight of snow, damage caused by rodents or pets, and damage from building subsidence or faulty construction work.

To avoid disappointment, IIZI property insurance product development manager Pille Plees recommends carefully familiarizing yourself with the contract terms to ensure what type of incident the insurance will cover.

Additionally, insurance terms may have limitations on property kept outside and portable property, which is why it's important to familiarize yourself with the contract terms beforehand. "If a bicycle is stolen outside the home, the insurance will only cover the damage if the bike was in a locked room or secured with a bike lock," Plees gives an example.

When choosing home insurance, look beyond the price

You should certainly not base your choice solely on price, as different insurance providers' terms and coverage can differ significantly. "Often attention is focused on the cheapest offer, but it's important to understand what and to what extent is insured, so that risks related to your home are truly covered," emphasizes Pille Plees.

"IIZI offers its customers a monthly payment option, which is a good way to spread your expenses," she recommends, noting that the insurance premium for a 2-room apartment including liability insurance and temporary accommodation rental cost protection differs from standard home insurance, where these protections are not included, by only 3-4 euros. "An insurance premium that's a few euros more expensive in a month offers peace of mind and saves you from substantial additional costs in case of damage."

Unfortunately, sometimes only when damage occurs do you realize that insurance coverage doesn't meet your expectations. "The sum insured for household property or liability may have been chosen too low, or you may have selected a coverage package with limited protections," explains Plees.

"If you've even once discussed your home insurance coverage with an agent, the feeling is more secure."

Simply having a home insurance contract is not enough; it should actually be helpful when damage occurs. IIZI always faces the client. "We help, advise, and recommend so that the client gets the best solution for their home. If you've even once discussed your home insurance coverage with an insurance agent, the feeling is more secure," recommends the product manager, so that people know what to do in case of damage and in which cases they can confidently turn to their insurance.

Find suitable insurance coverage for your home on IIZI's website!