Home insurance

Insurance is cheap compared with the damage it covers — a burst pipe, a fire or a break-in can cost far more than years of premiums.

Two kinds of cover

• Property (building) insurance covers the walls, roof, installations and fixed parts against fire, storms, water damage and similar risks. It is the owner's concern — and banks require it for a mortgage.
• Household (contents) insurance covers your furniture, appliances and belongings, often including theft. It is useful for owners and tenants alike.

Many insurers offer both in one package, often with liability cover for damage you cause to others — for example water leaking into the apartment below.

What to check

• Insured value: high enough to repair or replace what you have.
• Covered risks: fire, water, storm, earthquake (often an add-on), theft.
• Exclusions and excess: what is not paid and how much you pay yourself per claim.
• What to do in a claim: deadlines for reporting and which documents and photos are needed.

For tenants and landlords

Owners should insure the building; tenants protect their own belongings with household insurance. Write in the rental contract who insures what.