Why insure a private house

For many families a house is their main asset, representing years of savings. A fire, lightning strike, storm, burst pipe or burglary can within hours deprive them of both a home and the money to rebuild it. Voluntary house insurance costs far less than recovering from a serious loss.

Insuring a private house in Russia is voluntary. The exception is a mortgaged house: the Federal Law on Mortgage (Pledge of Real Estate) requires the pledged property to be insured against loss and damage unless the contract provides otherwise. More in the mortgage insurance section.

What can be insured

  • Structure — foundation, walls, floors, roof.
  • Finishes and utilities — windows, doors, flooring, wiring, plumbing, heating, boiler.
  • Contents — furniture, appliances, clothing, tools.
  • Outbuildings — bathhouse (banya), garage, shed, gazebo, fence, greenhouse.
  • Civil liability to neighbours — if fire or water from your house damages someone else's property.

Which risks to include

  • fire, lightning, gas explosion;
  • water damage from water supply, heating and sewage systems;
  • natural disasters: storm, hurricane, hail, flood, high water, earthquake, landslide;
  • unlawful acts of third parties: burglary, robbery, vandalism, arson;
  • falling trees, aircraft and other objects;
  • impact by a vehicle.

Floods and earthquakes are often included only for an extra premium or excluded in high-risk areas. Check this if your house is near a river or in a seismic zone.

How the sum insured is set

Under Article 947 of the Civil Code the sum insured may not exceed the actual value of the property. If the house is insured for less, the payment for partial damage will be reduced proportionally (Article 949 of the Civil Code). The exception is "first loss" insurance, if expressly provided for in the contract.

  • The structure is usually valued at the cost of building a similar house, not at its market price including land.
  • Contents can be insured item by item with stated values, or as a total sum with a limit per item.
  • For expensive houses the insurer may carry out an inspection and valuation.

What affects the price

  • wall material: wooden and timber-frame houses cost more to insure than brick and concrete ones;
  • type of heating: a stove, fireplace or solid-fuel boiler increases the rate;
  • year-round or seasonal occupancy;
  • security, alarm, video surveillance;
  • distance from the fire station, access for fire engines;
  • past losses and the size of the deductible.

How to take out a policy

  1. Decide what to insure: the house only, or the house with contents and outbuildings.
  2. Prepare an extract from the Unified State Register of Real Estate (EGRN) or other title documents.
  3. Take photos of the house outside and inside — they will help with claims handling.
  4. Compare offers from several insurers: risks, exclusions, deductible and payment procedure.
  5. Pay for the policy and keep the contract and the insurance rules.

What to do when an insured event occurs

  1. Take steps to limit the damage: shut off the water, cut the power, call the fire brigade or police.
  2. Obtain documents from the authorities: a fire certificate from the Emergencies Ministry (MChS), a police notification slip, a report from the management or emergency service.
  3. Notify the insurer within the period stated in the rules, and do not start repairs before the inspection unless needed for safety.
  4. Photograph the damage and list the affected property.
  5. Submit the claim and documents, and keep the inventory and proof of sending.

More on what to do is in the Insured Event section.

Common mistakes

  • understating the sum insured to save money — the payment will be reduced after a loss;
  • not telling the insurer about rebuilding, renting out the house or changing the heating;
  • leaving the house unattended for longer than the rules allow;
  • not reading the exclusions — for example, about worn-out utilities or gradual leaks.

You can choose a policy for a house or flat in the home and flat insurance section and estimate the cost in the calculator. If you have questions, send a request to Polis Re specialists.