Insurance

Real estate insurance protects your property from accidental occurrences such as natural disasters, fires, vandalism, etc. The proper type of insurance will help you with damage compensation and consequence mitigation. In the event of unexpected situations you might not be able to repay all the caused damage from your budget, and, in the event of extensive property damage, you may end up in an existential crisis.

The real estate insurance can cover:

• a house,
• a flat,
• a block of flats,
• a recreational building – such as a cabin or cottage,
• a garage including garage building,
• a farm building,
• a garden,
• other additional buildings.

If you are using a mortgage to buy a house or flat, then real estate insurance is a necessary condition in order to receive a mortgage loan.
An important element in relation to the specific insurance product you opt for is the right choice of insurance risk coverage.

The ability to insure loan risk is currently an optional element of any loan offered by the banks. From the loan debtor's point of view this covers the risk of failure to repay the loan due to death, permanent disability, incapacity to work or loss of employment.

Repayment ability insurance is usually offered in two basic options:

• Insurance A: basic insurance covers the risk in case of death and full or permanent disability.
• Insurance B: extended insurance, which besides the basic insurance also includes long-term disability insurance and also loan insurance in case of loss of employment.

In case of an insured event that is accepted by the insurance company, the insurance company assumes the obligation to repay the loan. Depending on the type of insured event, the insurance company will either repay the full outstanding loan amount (e.g. in the event of death) or will start instead paying the client's monthly loan instalments. The coverage of insurance risks depends on the particular insurance provider.