Apartment association insurance
What do we insure?
Apartment building (building shell)
The insurance covers the parts of the building jointly owned by the owners of the apartments that are necessary for the building’s structural integrity or whose removal would alter the building’s external appearance. Examples:
- Load-bearing structures (foundations, walls and ceilings)
- Roof, façade, balconies and external doors and windows
- Stairwells, basements, lifts and other communal spaces
- Technical systems in shared use (electricity, heating, water, sewerage, ventilation, communications, etc.)
- Equipment permanently attached to the building (lights, aerials, cameras, etc.)
Other structures
An apartment building also comprises jointly owned structures such as the following:
- Flagpoles
- Barriers
- Playgrounds
- Covered shelters
- Outdoor lights
Other communal property
You can also insure other property in shared use, such as a robotic lawnmower or other items agreed in the policy.
Liability insurance
We cover the apartment association’s statutory liability for any financial losses caused to apartment owners and third parties.
What does the insurance cover?
Fire damage
The insurance covers damage caused by fire, smoke, soot, the water used to extinguish a fire, lightning strikes and explosions.
Water damage
We compensate losses arising from leaks caused by a burst pipe in the water supply, drainage, heating or cooling system, or by a blockage in the drainage system.
In the case of older pipes, the insurance policy may impose restrictions on cover for water damage.
Burglary
When insuring personal property, you can add cover against burglary. We compensate losses arising from break-ins, robberies and any vandalism committed in the course thereof.
Vandalism
We cover the cost of damage caused to insured property as a consequence of the deliberate actions of a third party, including the cost of removing graffiti. We also compensate damage caused by the breakage of glass surfaces in a building and the theft of parts of a building.
Storm damage
We provide compensation for damage caused by storms (incl. hail) and resulting from a tree or other object falling onto insured property as a result of a storm. Winds of at least 18 m/s qualify as a storm.
Flood damage
We compensate damage arising from natural flooding, including storms, heavy rainfall or a rise in the water level of a body of water.
All risks
All-risk insurance offers the broadest cover, compensating for losses arising from sudden, unexpected and unforeseeable events that are not covered by insurance against burglary, vandalism or fire, water, storm or flood damage.
For example, we compensate the following:
- Damage to a lift or heat pump caused by a power surge or internal fault
- Damage to a building caused by the weight of snow or ice which it was impossible to prevent by exercising due care
Liability insurance
Liability insurance covers claims for damage for which the apartment association is liable under the law in connection with the ownership, possession or management of the apartment building or its structures.
For example, we compensate losses in the following situations:
- Snow or ice falling from the roof causes damage to a vehicle
- A leak originating in a technical system managed by the apartment association causes damage to property
For more details, review the terms and conditions of the insurance.
Why opt for PZU’s apartment association insurance?
– It provides cover in the event of an internal fault in a technical system in shared use as part of all-risk insurance.
– We cover any legal costs linked to a liability insurance claim.
– In addition to compensating property damage, we also cover any unavoidable additional costs, including those arising from demolition, clearance, waste removal, regulatory requirements and design work.
– The cover also applies to claims submitted within three years of the end date of the insurance period provided that the insurer is duly and promptly notified of the loss event.
– Structures are automatically insured to the value of up to €20,000.
– We compensate damage caused by the weight of snow and ice if all safety requirements have been followed.
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How to determine correct insurance amounts?
Apartment building (building shell) – Compensation is paid on the basis of the building’s restoration value, with the aim being to restore the building to the condition it was in prior to the insured event. The insurance amount stated in the policy is based on the building’s insurable value, i.e. its replacement value, and represents the insurer’s maximum liability for compensation in the event of a claim.
When taking out a policy, the policyholder is obliged to provide the insurer with the correct insured value of the building. If you have difficulty determining the insured value, please contact us.
Structures – Structures forming part of an apartment building are automatically insured to the value of up to €20,000.
If the value of a particular structure exceeds this limit and you wish to take out higher cover – e.g. €30,000 for a playground – this can be specified separately in the structure’s policy along with the desired amount of insurance.
Liability insurance – The limit of compensation under liability insurance should be sufficient to cover any claims for damage that could arise from the ownership and management of the apartment association’s land, building or structures.
When selecting a limit, it is worth taking the following into account first and foremost:
The size of the apartment building – The more apartments and residents there are, the greater the scope of any potential claims.
The extent of potential damage – For example, a fire (and the water damage caused in extinguishing it) could affect many apartments. Similarly, leaks in apartment buildings can cause extensive damage across several floors.
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Prevent damage arising from natural events?
- Regularly check and maintain your roof, rainwater systems, sewerage, drainage and septic tanks. The sewerage system must be fitted with a backflow valve or pump to prevent water flowing back in.
- In rooms or spaces situated below ground level, store any items at least 12 cm above the floor.
- Perform regular maintenance on your water supply, drainage and heating systems and protect them from freezing. If the building or any part of it is unheated in winter, shut off and drain the water systems and keep them empty.
- Clear ice and snow from the roof in winter, and ensure that roads and pavements are safe and have been gritted or similar to prevent slipping.
- Before a storm, close all doors and windows and remove any items from the garden or courtyard that could be blown away by strong winds.
- Remove any dried-out and dangerous trees and branches close to the building.
- In areas prone to flooding, relocate electrical equipment and other essential machinery located in basements to somewhere above the potential level of the flood water.
Simple preventative steps can help to reduce the risk of damage and keep a building in good condition.
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What to do in the event of damage?
- Ensuring people’s safety must be your top priority. If anyone has been injured in the incident, notify the emergency services immediately and follow the instructions you are given.
- Where possible, do everything you can to prevent the damage from getting any worse.
- Report the damage as soon as possible.
- Take photographs of the damage and keep all receipts and invoices related to dealing with the incident.
- If necessary, arrange for emergency repairs so as to prevent any further damage.
- Submit a claim to PZU. We will then help you resolve the incident as quickly as possible.
PZU is AB "Lietuvos draudimas" Estonian Branch trademark in Estonia. AB "Lietuvos draudimas" is Lithuanian insurance company, that is part of the international PZU Group. Before entering into an insurance contract, please examine the terms and conditions or dial +372 622 4599 for additional information.
