Apartment house liability insurance

Apartment house liability insurance protects the Board of an apartment house and thus all the apartment owners against third party claims that are related to losses caused by acts or omissions of the apartment house. A person stumbling because of unsanded sidewalk, ice chunk suddenly falling from the roof, a big branch causing damage to parking vehicles – these are only a few examples of a situation where apartment house liability insurance can help to compensate the losses.

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What is the apartment house liability insurance? 

Insurance compensates property losses and personal injuries caused in relation with the possession of common ownership.

Claims submitted against apartment houses are mostly caused by the following:

  • bashed or scratched vehicles because of heavy wind that caused garbage cans to move or heavy branches to fall; 
  • personal injuries or property losses caused by snow and ice falling from the roof or by falling roof details;
  • water damages to apartments caused by ruptured pipeline.

See for detailed insurance terms and conditions here.


What is liability insurance of an apartment building?

An integral feature and part of an apartment building is common ownership. The property, which is possessed and must be maintained jointly by its co-owners. The goal of liability insurance of an apartment building is to protect co-owners in a situation, where despite their wish and effort to prudently maintain their common ownership something goes wrong, resulting in damage to property or health of a person.

Damage caused to which person is covered by liability insurance of an apartment building?

The insurance covers incurred damage in accordance with the choices made at the time of conclusion of a contract. If no apartment association was formed in the building, then co-owners of the building can protect themselves only from claims coming from third persons. If an apartment association was formed in the building, then the policy holder can choose whether the circle of claimants is limited by third persons only (liability insurance), or the cover applies to claims submitted by apartment owners as well (extended liability insurance).

Does the apartment house liability insurance replace or compensate the home insurance, if losses arise from common ownership?

Apartment house liability insurance helps on behalf of the apartment association or the building society to compensate to homeowners the losses, for and to the extent of which the association or the society is legally responsible. Exclusions provided by the liability insurance contract are also essential. E.g. if an apartment is damaged by water leaking through the structure or because of a common ownership, but the apartment association is not responsible for the damage, the existence of home insurance is the only actual protection against incurred losses. Also, home insurance helps in situations where the victim and the person who caused the damage disagree.

Why doesn’t Salva recommend concluding the extended liability insurance for smaller apartment houses?

Apartment house liability is principally the liability of all owners of physical shares. It compensates also the losses caused by an owner of physical share in relation with the possession of common ownership. Home liability insurance can be purchased with a deductible of 50 EUR. As the apartment house liability insurance does not cover the liability of a person as an owner of physical share (which is covered by home liability insurance), the personal investment of 20-25 EUR into home liability insurance contract is more reasonable and affordable than the payment for the apartment house liability insurance (with minimum deductible of 200 EUR). Finally, home liability insurance already includes the part of insurance cover that is purchased together with extended apartment house liability insurance.

What are the benefits of entering into an insurance contract?

A contract of liability insurance of an apartment building will not replace prudent maintenance and will not release co-owners from their obligation to maintain their property in a way that it cannot cause damage to its user, not to mention an innocent bystander. Even though insurers provide compensation for insufficient prudency and make payments to cover damage caused to property or to person, co-owners themselves must want to take care of the apartment building and contribute to its maintenance. If such contribution and wish remain marginal, then the benefit from the contract will be marginal as well.