Home Insurance — Fire, Earthquake, Flood, and Damage from Other Causes

Why Is Home Insurance Important?

For most people, their home is one of their most valuable assets. Whether it is an owner-occupied property or a property rented out to tenants, serious damage can result in a significant financial burden.

A fire, earthquake, flood, or even a water leak can lead to repair costs, equipment replacement expenses, and damage restoration costs. In some cases, the property may also become temporarily uninhabitable.

Home insurance can provide financial protection against specific risks, subject to the coverage, limits, and exclusions set out in the policy.

However, not all insurance plans cover the same risks. That is why it is important to understand what you are insuring, which incidents are covered, and what conditions must be met for you to receive compensation.

What Can a Home Insurance Policy Cover?

Depending on the plan, home insurance may cover the building, its contents, or both.

1. Building Insurance

Building insurance covers the property itself and the elements that form part of its structure, as defined in the policy.

It may include:

• Walls, ceilings, and floors.
• Permanent plumbing and electrical installations.
• Fixed cabinets and built-in fixtures.
• Doors and windows.
• Other permanent structures specified in the policy.

The exact scope of coverage depends on the terms of the plan. Special structures, auxiliary spaces, storage rooms, parking spaces, or outdoor installations may need to be specifically declared or may be subject to restrictions.

2. Contents Insurance

Contents insurance covers movable items inside the home, provided they are included in the insurance coverage.

Examples may include:

• Furniture and household furnishings.
• Electrical appliances and electronic devices.
• Clothing and personal belongings.
• Household appliances and kitchen equipment.
• Other items specified in the policy.

High-value items, such as jewellery, works of art, or collections, may require specific declaration, supporting documentation, or additional coverage.

It is important to estimate the value of your belongings realistically. The cost of replacing all your furniture, appliances, and personal possessions may be higher than you initially expect.

Home Insurance Against Fire

A fire can cause anything from limited damage to extensive destruction of the building and its contents.

Fire insurance may cover damage caused directly by fire and, depending on the policy terms, damage caused by smoke, lightning, or other related events.

Before choosing a plan, check:

• Whether both the building and its contents are covered.
• Whether damage caused by smoke or firefighting efforts is included.
• Whether specific items are subject to individual coverage limits.
• Whether debris removal or temporary accommodation expenses are covered.
• Which conditions apply to the use and condition of the property.

Do not assume that every consequence of a fire is automatically covered. Any additional benefits must be confirmed in the policy terms.

Home Insurance Against Earthquakes

Seismic activity is a significant risk for properties in Greece. An earthquake can cause cracks, masonry damage, damage to installations or, in severe cases, extensive structural destruction.

Earthquake coverage is not necessarily included in every basic home insurance plan. In some cases, it is offered as an optional extra and may be subject to specific terms and conditions.

Pay particular attention to the following:

• Whether earthquake coverage is explicitly included in the policy.
• The insured amount for the building and its contents.
• Whether an excess applies and how it is calculated.
• Whether there are requirements relating to the property's construction, age, or condition.
• Whether damage caused by fire or other consequences of an earthquake is covered, and under what conditions.

The excess is particularly important, as it can significantly affect the amount you ultimately receive following a claim.

Home Insurance Against Flooding

Floods can damage floors, walls, furniture, electrical appliances, and installations. Even when the water is removed quickly, moisture and restoration work can result in substantial expenses.

Flood coverage may apply to damage caused by water entering the property as a result of specific weather or natural events, depending on the terms of the plan.

Before insuring your property, clarify the following:

• How flooding is defined in the policy.
• Whether damage caused by heavy rainfall or overflowing water is covered.
• Whether special terms apply to basements and storage areas.
• Whether both structural damage and damage to contents are covered.
• Whether exclusions apply to drainage problems or lack of maintenance.

Flood coverage should not be confused with every possible type of water-related damage. The exact incident and its cause are important when determining whether a claim is payable.

Water Damage and Burst or Leaking Pipes

A leaking pipe, a plumbing system failure, or an overflow incident can damage your home or even a neighbouring apartment.

Depending on the policy, coverage may include:

• Building damage caused by a sudden leak.
• Damage to furniture and other insured contents.
• Leak detection costs, where provided for.
• The cost of repairing specific types of damage.
• Third-party liability, where the relevant coverage is included.

Important: Damage caused by a sudden leak is different from deterioration that develops gradually due to age, corrosion, poor maintenance, or moisture. Insurers may treat the latter differently.

If damage occurs, it is important to take immediate steps to limit its extent and notify your insurance company in accordance with the required procedures.

What Is Homeowner's Liability Insurance?

Liability insurance concerns the obligation to compensate third parties for damage for which the insured is legally responsible, subject to applicable law and the terms of the coverage.

For example, a leak from your apartment could damage the ceiling or furniture of the neighbour living below you. In such a case, home liability insurance, if included in your policy and applicable to the incident, may help cover the resulting claim.

Before choosing a plan, consider:

• The maximum compensation limit.
• Which incidents and forms of liability are covered.
• Whether liability arising from property ownership, property use, or both is included.
• Whether specific exclusions apply to rented properties or short-term rentals.

Liability insurance is not the same as coverage for damage to your own property. These are separate insurance needs that should be assessed individually.

Home Insurance for Property Owners and Tenants

Your insurance needs vary depending on your relationship with the property.

If You Own the Property

You may need protection for both the building and its contents if you live there. If you rent out the property, you should also consider building protection, liability coverage, and any specific requirements relating to the rental arrangement.

If You Are a Tenant

You generally do not need to insure the entire building in the same way as the owner, since the property belongs to the landlord. However, you may want to insure your personal belongings and consider liability coverage for incidents for which you may be held responsible.

The fact that the landlord has an insurance policy does not necessarily mean that the tenant's personal belongings are also covered.

If You Rent Out Your Property on a Short-Term Basis

Renting out a property through short-term accommodation platforms may require a different assessment from a home used exclusively by its owner.

Before choosing a plan, inform the insurance company about the property's actual use and obtain written confirmation that this activity is accepted. Also consider whether you need additional liability coverage or other specific benefits.

How Do You Calculate the Right Insured Value?

A common mistake is choosing an insured amount without having a clear understanding of the actual value of the building and its contents.

For building insurance, the insured value is often based on the reconstruction cost, rather than simply the property's market selling price. Market value may include the value of the land, the location, and other factors that do not correspond to the cost of rebuilding the property.

For contents insurance, you need to estimate the replacement cost of the insured items, taking into account the valuation terms specified in the plan.

An accurate assessment is important because underinsurance or an inaccurate declaration of value may affect the compensation you receive, depending on the policy terms.

How to Compare Home Insurance Plans

The lowest price does not necessarily mean that a plan is the most suitable. To make a meaningful comparison, consider the following:

• What is insured: The building, its contents, or both.
• Which risks are covered: Fire, earthquake, flooding, leaks, and other benefits.
• What limits apply: The total insured amount and individual limits for specific types of damage.
• Which excesses apply: How much you must pay yourself in the event of a claim.
• What exclusions apply: Which events or causes of damage are not covered.
• How compensation is calculated: The valuation basis and any applicable conditions.
• The total cost: The annual premium, any additional coverage, and renewal terms.

Request written quotations with coverage options that are as comparable as possible. This will help you assess not only the price but also the actual protection offered by each plan.

Globy+: Protect Your Home and Property

Every home has different insurance needs. The age of the building, its location, construction, use, and the value of its contents all influence the choice of appropriate insurance protection.

At Globy+, our goal is to help you understand the available options and compare plans based on your actual needs. By carefully assessing coverage, excesses, and exclusions, you can choose a policy that better meets the requirements of your property.

Don't wait for damage to occur before discovering what your policy covers. Get informed in advance and take steps to protect your property.

Important Notice: This article is provided for informational purposes only and does not constitute personalised insurance, legal, or financial advice. Coverage, limits, excesses, and compensation conditions are determined by the terms of the relevant insurance policy and the insurance company.