What home insurance covers

Voluntary home insurance protects you from costs that are hard to meet from the family budget: repairs after a leak or fire, rebuilding a house after a storm, replacing stolen electronics, compensating neighbours. A policy is made up of several parts:

  • Structural elements — walls, floors, partitions, windows and doors; for a house, also the foundation and roof.
  • Interior finishes and utilities — floors, ceilings, wallpaper, plumbing, pipes, wiring.
  • Contents — furniture, household appliances, electronics, clothing.
  • Third-party liability — harm you accidentally cause to neighbours, such as flooding their flat.

For private houses, a bathhouse, garage, outbuildings and landscaping can be insured separately.

Which risks

  • fire, lightning strike, household gas explosion;
  • water damage — from a burst water, heating or sewage pipe, including from neighbours;
  • natural disasters: storm, hail, flood, earthquake — depending on the programme;
  • unlawful acts of third parties: burglary, robbery, vandalism;
  • falling trees and other objects, impact by a vehicle.

Who needs it

The law does not require individuals to insure their homes. The exception is a flat mortgaged to a bank: under Article 31 of Federal Law No. 102-FZ on mortgage, insurance of the mortgaged property is mandatory — see mortgage insurance. But a mortgage policy usually covers only the structure and leaves finishes, belongings and liability unprotected.

A policy is especially useful for people who have done an expensive renovation, live in an old building with worn pipes, rent out their flat, travel for long periods or own a country house.

Laws and regulation

The contract is concluded under Chapter 48 of the Russian Civil Code and the insurer's policy wording; insurers are regulated by Russian Federation Law No. 4015-1 and supervised by the Bank of Russia. Liability for harm to neighbours arises under the general rules of Article 1064 of the Civil Code — a liability policy shifts those costs to the insurer. A voluntary contract can be cancelled within 14 calendar days under Bank of Russia Directive No. 3854-U if there have been no insured events.

What drives the price

  • the sum insured for each item;
  • the set of risks;
  • type and condition of the home: wall material, year of construction, floor, state of utilities;
  • for a house — a stove or fireplace, gas, security, distance from the fire station, seasonal or permanent residence;
  • the deductible;
  • valuation method: a declared sum without inspection, or an inspection with an inventory of property.

Off-the-shelf policies without inspection are inexpensive, but the limits for each item are fixed in advance. For an expensive renovation or a country house, an individual contract with inspection is better value. You can estimate the cost with the property insurance calculator.

Off-the-shelf policy or individual contract

An off-the-shelf policy is sold at a fixed price, bought online in minutes and needs no inspection. The risks and limits for each item are set in advance: for example, a separate amount for finishes, for belongings and for liability. It suits a standard flat with an ordinary renovation.

An individual contract is concluded after an inspection, sometimes with photos and an inventory. It is chosen for expensive renovations, collections, country houses and bathhouses. It takes more effort to arrange but reduces the risk of disputes about value when you claim.

If you rent out your flat, tell the insurer: many policy wordings require it, and some programmes are designed specifically for landlords and include the tenant's liability.

How to choose an insurer

  • Compare the limits for each item: finishes, belongings, liability.
  • Check how the payout is calculated: "new for old" or with wear deducted.
  • Ask whether you need receipts to prove the value of belongings.
  • Look at the exclusions: worn utilities, gradual exposure to moisture, faulty wiring, renting out without telling the insurer.

The directory of insurers helps you choose a company.

How to claim

  1. Stop the threat: shut off the water, call the emergency service, fire brigade or police.
  2. Record the damage in photos and video; do not throw away damaged items before the inspection.
  3. Get documents: a management company report on the leak, an Emergencies Ministry certificate for a fire, a police notification receipt for a theft.
  4. Notify the insurer within the time set in the wording and file a claim.
  5. Wait for the inspection and the loss calculation.

Detailed instructions are in the Insurance claim section.

Common mistakes

  • Underinsurance. If the sum insured is less than the real value, the payout may be reduced proportionally — this is the rule of Article 949 of the Civil Code unless the contract says otherwise.
  • Not reporting changes: renting the flat out, alterations, a long absence.
  • Repairing before the insurer's inspection.
  • Not insuring liability. Flooding the neighbours below often costs more than repairing your own flat.