Kuvassa nainen pitelee käsissään saavia, johon tippuu katosta vettä

Home insurance provides security

The lessor's insurance does not cover everything, which is why home insurance is important also for those living in rental apartment. It brings peace of mind and financial security in case of damage incidents.

Home insurance is generally considered one of the most important insurances to have. Its importance becomes particularly evident in the event of a major single damage at home or when a significant amount of personal property is destroyed at once.

According to Hanna Salo, an insurance expert at FINE (the Finnish Financial Ombudsman Bureau), the annual premium for home insurance is reasonable, especially considering the protection it offers in potential damage situations.

– It's a relatively modest investment compared to the costs incurred in replacing movables in the event of damage. Additionally, the annual premium for home insurance can usually be paid in several installments, making the one-time investment not too large.

It's advisable to compare the cost of home insurance with product insurances sold by electronics stores for individual items, such as laptops or televisions.

– The price of product insurance for a single item could almost cover home insurance for all the movables, Salo hints.

Lessor's insurance does not cover everything

It's a common misconception that the lessor's insurance covers everything, eliminating the need for one's own insurance. This is not true.

– The lessor's insurance does not cover the tenant's personal belongings, such as furniture, clothes, and electronics. A tenant's own home insurance generally also covers the fixed interior of the apartment, Salo says.

Home insurance provides security even if living is interrupted due to damage.

– The lessor's insurance does not cover the costs of living interruption if the tenant has to move out of the apartment due to damage that could be covered by home insurance, Salo explains.

Salo notes that home insurance can be helpful even in major damages, for example, if the damage causes structural damage to the building.

– A tenant's own home insurance and the liability insurance included in it can be helpful in situations where the lessor charges the tenant for costs.

Influence your home insurance price

The scope and coverage of home insurance can vary between insurance companies.

– The extent of the insurance and the types of damages it covers can often be chosen. The most basic home insurances may only include fire insurance, while the most comprehensive ones also cover breakage damages, Salo shares.

The best overall view of different insurances is available through insurance companies' brochures and product guides.

– When taking out insurance, it's important to check from the insurance policy that the coverage is as expected. Additionally, it's advisable to check that the insurance is up to date at the beginning of each insurance period.

Several factors determine the price of home insurance, such as the scope of the insurance and the amount of the deductible.

– The more extensively various damage situations are covered, the more expensive it is. You can influence the price of home insurance by opting for a higher deductible, Salo suggests.

Salo reminds that in some cases, one may also be unable to obtain home insurance.

– The most common reason for this is that the applicant has a record of payment defaults.

Home insurance protects the entire family

Home insurance usually also includes liability and legal expenses insurance.

– Liability insurance compensates for damages for which the insured person may be liable to pay compensation to another party. Legal expenses insurance, on the other hand, covers legal and court costs in dispute, criminal, or application cases, Salo explains.

Home insurance also provides protection for family members.

– It's sufficient for one person in the family to take out home insurance. The home insurance and the included liability and legal expenses insurances cover all individuals living in the same household with the policyholder, Salo says.

Text: Mia Weckström