Personal property covered under 400,000 homeowners insurance policies
A total of 472,000 homeowners insurance contracts were signed in Estonia in 2024, nearly 400,000 of which included personal property coverage and 376,000 of which also included liability coverage, according to figures from the Estonian Insurance Association (EKsL).
According to Ülli Reimets, loss prevention lead at EKsL, more than 80 percent of homes in Estonia are insured.
"The number of homeowners insurance contracts has grown in recent years, and you could say that homeowners insurance coverage is strong," Reimets confirmed.
"People are more inclined to insure their personal property than to take out liability insurance," she continued. "However, one issue with both property and liability insurance is that [clients'] chosen policy limits often don't fully cover damages in the event of an accident."
Last year, insurance companies paid out €59 million in homeowners insurance claims, including €9 million for personal property damages.
Liability insurance payouts, meanwhile, amounted to €4 million.
Reimets emphasized that insurance will only cover damages up to the agreed-upon limits.
"If a water pipe bursts in your apartment and causes €30,000 in water damage to the apartments below, but your liability insurance covers only €20,000, then insurance will cover that €20,000, and you will have to compensate your neighbors for the remaining €10,000 yourself," she explained.
The loss prevention lead recommended anyone in an apartment building choose a policy limit of at least €30,000, and even higher for those whose homes are located on upper floors.
In 2024, personal property coverage policy limits within homeowners insurance policies averaged €31,000. This coverage includes household electronics, appliances, furniture, bicycles as well as all other belongings. Policy limits for liability coverage, which covers damage caused to others, averaged €27,000.
According to Raido Kirsiste, director of the Estonian branch of Norwegian insurance company Gjensidige, the largest homeowners insurance payouts are in cases of fires.
"Last year, for example, we paid out more than €300,000 for a single house fire," Kirsiste recalled.
"However, in terms of the number of claims, the most frequent personal property claim payouts were for electronics, phones and other similar items," he continued. "This was followed by water damage claims. When a pipe bursts in an apartment, on top of the damage to one's own property, the flooding also causes damages to their neighbors, whose repairs are covered by liability insurance."
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Editor: Aili Vahtla
