Carefree and safe living without risks – that is what most people want from their homes. But sometimes in life you end up in situations that you do not have any control over. At those times, it would feel unfair to have to dig into your own wallet and use the savings you had reserved for other use to deal with the situation.

Fortunately, these things rarely happen at home and in everyday life. And, if you have home insurance in place, you will not be in for as bad a shock as you otherwise would. Home insurance is every Finn’s basic insurance, which compensates for accidents occurring at home and damage to items inside it.

Reima Kettunen, Technical Manager at Lumo Homes, advises everyone to make sure that their home insurance is in order. In his work, he has seen sad cases where the lack of insurance has cost the resident thousands or even tens of thousands of euros.

“If, for example, the connection of the dishwasher fails and water flows into the building’s structures and the downstairs neighbour’s apartment, the resident might, in some cases, have to bear the repair costs,” Kettunen says.

Kojamo has insured all Lumo buildings with property insurance. It covers the building and its fixed structures and furnishings. Property insurance does not, however, cover damage to residents’ movable property, such as furniture, dishes, electronic equipment, appliances or leisure equipment.

For this reason, the residents of Lumo buildings are required to take out home insurance and make sure it remains valid throughout the tenancy relationship.

It is also a good idea to include liability insurance in the insurance policy. In many home insurance policies, it is automatically included or can be included in the package. Liability insurance covers you if, for example, your child scratches a neighbour’s car while playing or you run into a pedestrian while riding a bicycle and they are injured.

Home insurance also comes in handy in cases where the resident accidentally damages the property’s structures or appliances in the apartment.

“If a bottle of nail polish falls in the wash basin and the basin cracks, replacing it will cost approximately EUR 300. Home insurance may cover the bill, in which case the resident will only have to pay the insurance excess.”

According to Reima Kettunen, the most common cases of major damage are water leaks, where, for example, water starts to seep through the connection of the dishwasher or a plastic baby bath topples over in the wrong place, such as the living room. In this case, it may be necessary to remove flooring, drain the structures and repair the damaged area.

Each accident is unique, and the insurance company assesses each case separately before making a compensation decision. As a rule of thumb, however, it can be said that home insurance and liability insurance are a combination with which you can live safely and with peace of mind.

Damage caused intentionally or through gross negligence is another matter altogether.

“If you forget your bike key in the lock and someone snatches it from the backyard, your home insurance won’t cover it.”

Home insurance provides financial security and peace of mind at a fairly affordable price. The most affordable home insurance policies for a two-room apartment of 50 square metres cost around EUR 100 per year or less than EUR 10 per month.

The price of a home insurance policy is influenced by several factors, such as the age of the policyholder, the size of the apartment and the municipality.

The coverage of the insurance is also important. The most limited home insurance policies only cover damage caused by a fire, storm or lightning. Slightly more comprehensive insurance also comes to the rescue in minor inconveniences – for example, if an appliance breaks down or your mobile phone accidentally falls to the floor.

In this case, the home insurance may cover the cost of the repair or, if necessary, a new device. Depending on the insurance and the item, the policyholder will typically have to pay an excess of EUR 100–200.

The compensation also depends on the age of the item. If a stolen bike was brand new, home insurance may compensate for the purchase of a new one even at full price. As the vehicle ages, the level of compensation also decreases.