Buying a home is an exciting and joyful experience, especially when it's your very first one. The anticipation of finally moving into your own home, choosing everything according to your taste, and decorating it just the way you like, without having to negotiate with landlords or other parties, is a thrilling and enjoyable endeavor. However, all of this can be dampened by the fact that buying a home also comes with several responsibilities that may not be immediately apparent.
One of these responsibilities is taking care of your home, which includes dealing with local issues and compensating for damages caused to third parties that originated from your property. These can include, for example, a broken window that needs to be fixed on your own, unlike in a rental property, or water damage caused by a leaking faucet that has reached the apartment of neighbors living on lower floors. In both cases, as a homeowner, you have to take responsibility and find solutions to these problems.
To prevent such issues from escalating, a good solution is to get home insurance, which protects you in case of accidents related to your home and personal property. Depending on the chosen coverage options, home insurance can also come in handy if, for example, your children accidentally scratch your neighbor's car with their scooter or if something happens to the personal belongings of another family member. To protect against such incidents, it is important to include sufficient coverage for personal property, with an insurance sum that covers potential damages to specific items. This also includes various technological gadgets, clothing, school supplies, bicycles, and other personal items which monetary value has been confirmed in the policy before its signing. In such cases, personal risks are somewhat lower, and the joy of enjoying your home and everything that comes with it can be even greater.
In addition to protecting your personal and portable property, liability insurance is also crucial when it comes to home insurance. It becomes especially important when damage has occurred to third parties as a result of an insured apartment. Such situations can be very uncomfortable, especially if you lack knowledge and skills to assess the severity of the situation and the extent of damage for both parties involved. In such situations, liability insurance, included as an additional risk in home insurance, helps to better understand the scope of responsibility for the damage caused and clearly define it between all parties. It is worth emphasizing that liability insurance does not only cover damages caused to neighbors in an apartment building. It is equally useful in cases where a pedestrian slips and falls in front of your private house or if damage occurs to parked vehicles due to snow or ice falling from your roof. Therefore, it is important to carefully read the terms and conditions of the liability insurance before signing the policy and choose the specific coverage that suits your home's circumstances.
While purchasing home insurance seems like a logical step when buying newly built properties, especially when financed by a home loan, the necessity of such insurance is often questioned when it comes to older houses. In some cases, it may seem like an additional expense that is not deemed necessary. In other cases, even if some damage were to occur, it might be considered so minimal that compensating for it is not seen as necessary.
Of course, there are also people who find any form of insurance unreasonable and believe in relying solely on good luck, thinking that nothing will happen to them anyway. In response to such viewpoints, Murphy's theory can be brought up, which suggests that precisely in these cases, it is advisable to have the corresponding insurance. We have all heard sayings like "better safe than sorry" or "an umbrella is taken along in advance, often not needing it." For those who believe they can cover the costs of accidents themselves, it is worth remembering that in most cases, the expenses do not only involve buying new tiles, moldings, or other materials. It is also necessary to purchase the tools to remove previous slats, etc. parts, to install new ones, and if your own knowledge and skills are not enough, you must also pay professionals to get the job done. As a result, initial costs can become significantly more expensive.
As a result of the above, it is important to emphasize that home insurance does not only include mandatory insurance purchased with a loan to secure a new living space, but it is a significantly broader coverage that helps to mitigate risks for owners of older private houses and apartments as well. Therefore, when buying a home, it is definitely worth considering various home insurance options and taking out a policy that would cover your wishes and needs.
You can find out about BTA's various home insurance options here.
The article in Estonian has also been published in the Kinnisvara24 blog.