We encounter situations where many apartment owners forget to arrange insurance.
This creates numerous problems. Here are several examples:
- Due to waterproofing issues with the upper apartment's terrace, rainwater leaks down the wall into the lower apartment.
Repair costs exceed several thousand euros. If neighbors cannot reach an agreement through negotiation, they will need to go to court for several years. Yet the insurance would have cost approximately 200 euros.
- A tap burst in an apartment, and cold water flooded the floor. It took 20 minutes to shut off the water.
But those 20 minutes were enough to flood the lower apartment. The lower apartment was insured, and the insurance company paid 5,000 euros to make repairs. Then the insurance company sent a claim to the upper apartment, demanding reimbursement of this amount. Insurance for the upper apartment would not have exceeded 60 euros.
- An air conditioning pipe burst, rusty water leaked from the conditioner, damaging the wall and parquet floor.
Repair costs are approximately 500 euros. Insurance costs approximately 180 euros.
Our company frequently receives clients who have damaged other people's property or caused harm to neighbors.
Without insurance, such disputes are a complicated, lengthy process where agreement is difficult to reach.
If damage has been caused and there is a claim, it is practically impossible to reduce the amount you will have to pay. The only option is to negotiate a payment plan.
But if you have insurance and civil liability is covered, your insurance company will cover the damage caused to neighbors. When you pay a "insurance policy," the insurance company assumes a certain risk.
If nothing happens, your 60 euros paid for insurance will increase the insurance company's profit. But if an incident occurs, the insurance company will pay 2,000 euros, even though you paid only 60 euros.
Here is a list of risks that can be insured:
- Damage caused by fire, lightning strike
- Damage caused by water supply failure, sewage failure, or heating system failure
- Damage caused by natural disasters
- Consequences of theft, burglary, and vandalism
- Damage caused by power surge
- Specialist call-out and home assistance if an unforeseen incident occurs
Additionally, you can insure:
- Housing during renovation or construction work
- Movable property located in the house and outside it
- Pets, bicycles, computer software, and even food supplies
- Auxiliary buildings, sheds, garages and yard elements, playgrounds, lighting equipment, fencing
- Trees and vegetation on the property
For broader financial protection, consider:
- Civil liability insurance. This will protect you from unforeseen financial expenses in case your actions or inactions cause damage to neighbors' property.
When arranging an insurance policy, pay attention to:
a) Risk "limits." For each risk, the insurance company sets a maximum amount that is paid if an incident occurs.
You need to ensure that these amounts are sufficient and correspond to the market value of your real estate, furniture, etc.
b) The "deductible" amount. Very often, to reduce the cost of an insurance policy, the insurance company sets a "deductible" amount.
For example, if the damage amount is 1,000 euros and the deductible is 200 euros, the insurance company will pay 800 euros. You will need to cover the remaining 200 euros from your own funds.
If you need help arranging insurance or encounter problems with an insurance company, contact us!
We will review your situation and advise you on the most suitable solution!
If you also wish to purchase quality real estate, if individual approach is important to you, if you want to communicate with a real estate agent and lawyer in your native language, then contact our company KOM-INVEST! We will be happy to select a suitable property, answer all questions, draw attention to important details, complete the transaction, arrange your residence permit, and manage your property.
For more detailed information about obtaining a residence permit in Latvia, see here in various sections.
Have questions? We await your email or call!
Phone number: +371 29774775
Email: info@kominvest.com
Skype: KOM-INVEST