Seesam to Become the First in Estonia to Insure Homes Against War Damage

Starting today, Seesam Insurance is offering homeowners the opportunity to insure their homes against war damage as the first Estonian insurance company to do so. The new additional coverage helps compensate for damage if, for example, a home is hit by a military drone, missile, or their debris.

According to Dagmar Gilden, product manager of Seesam's home insurance, the changed security situation has increased people's interest in unlikely but high-impact risks as well.

"The arrival of military drones in the airspace of the Baltics has raised the question of whether a home would be protected in such a case. Although the risk is still small, many people want the opportunity to prepare for events that standard home insurance does not cover," said Gilden.

Protection can be added to home insurance for single-family homes, semi-detached houses, townhouse units, and apartments. The insurance helps compensate for damage if a home is hit by a military drone, missile, shell, or their debris, as well as damage caused by their explosions. If the basic home insurance policy also covers property in the home, war damage protection extends to that as well.

According to Gilden, introducing this new solution to the market does not mean that the Baltics have become significantly more dangerous.

"Insurance does not create risks or fears. Its purpose is to give people the opportunity to protect their property against events whose probability is small, but whose consequences can be very costly. We hope, of course, that no one will ever need such insurance," said Gilden.

As is customary in international insurance practice, Seesam's war damage protection is also limited. It does not cover, for example, terrorism, sabotage, riots, or civil unrest. Damages related to great power war or the use of nuclear, biological, or chemical weapons as defined in the insurance terms are also not compensated.

War damage protection must be added separately to home insurance and without the corresponding endorsement, it does not apply to the policy. The deductible is 300 euros for each insurance claim, and the protection is concluded for up to one year.

"War damage insurance may sound very expensive, but in fact the additional coverage is quite affordable. Its cost depends on the size of the insured home – for example, for a 50-square-meter apartment, the price is approximately 0.99 euros per month and for a 140-square-meter house, approximately 5.49 euros per month," said Gilden.

In addition to individual homeowners, apartment associations can also insure their building against war damage. Seesam offers them war risk protection as an addition to commercial property insurance, which reached the market in early July. For example, for an association with 40 apartments, the cost of additional coverage could be less than one euro per month per apartment.