How to Choose Home Insurance — What It Covers and What to Watch For

Why Is Home Insurance Important?

A home is usually the largest component of Poles' wealth. Despite this, over 60% of apartments in Poland are not insured. One plumbing failure, fire or burglary can mean losses reaching tens of thousands of PLN.

Home insurance is not a luxury — it's the foundation of responsible financial management.

Types of Home Insurance

Building Structure Insurance

Covers permanent building elements:

• Walls, ceilings, foundations
• Installations (electrical, water-sewage, gas)
• Windows and door frames
• Facade and roof (in single-family houses)

For whom: Property and house owners. Mandatory with mortgage loan.

Household Contents Insurance

Covers apartment furnishings:

• Furniture and household appliances/electronics
• Clothes and personal items
• Electronic equipment (computers, phones)
• Jewelry and art works (usually with sublimit)

Personal Liability Insurance

Covers damages caused to other people:

• Flooding neighbor below
• Damaging others' property
• Damages caused by children or pets

This is one of the most important insurances — flooding a neighbor can cost PLN 20,000-80,000.

Home Assistance

Help in emergency situations:

• Plumber, electrician, locksmith 24/7
• Coverage of intervention costs (usually up to PLN 500-1,000/incident)
• Organization and coverage of hotel costs (for serious breakdowns)

What Does a Standard Policy Cover?

Typical Coverage Scope

What the Policy Does NOT Cover (typical exclusions)

1. Gross negligence — you left a tap open and went on vacation
2. Intentional damage — deliberate destruction
3. Natural wear — old installation that simply aged
4. Lack of maintenance — leaky roof you didn't repair
5. War actions and terrorism — standard exclusion
6. Mining damage — important limitation in Silesia region

What to Watch For When Choosing a Policy?

1. Sum Insured

The most common mistake is underinsurance. If your apartment is worth PLN 500,000 and you insure it for PLN 300,000, the insurer will pay compensation proportionally (proportionality rule).

How to determine the sum?

• Structure: replacement value (reconstruction cost, not market price)
• Contents: sum up value of all things in apartment (usually PLN 50,000-150,000)

2. Deductible and Own Share

• Integral deductible — insurer doesn't pay compensation below amount (e.g., PLN 200)
• Deductible — amount is deducted from each compensation (e.g., PLN 500)
• Own share — you cover % of damage (e.g., 10%)

The lower the deductible, the higher the premium — look for balance.

3. Anti-Burglary Security

Insurers require specific security measures:

• Multi-point locks — minimum 2 locks in entrance door
• Anti-burglary door — RC3 class or higher
• Bars or shutters — for ground floor apartments
• Alarm — reduces premium by 5-15%

Lack of required security = refusal to pay theft compensation.

4. Replacement vs Actual Value

• Replacement value — cost of buying new equivalent (better option)
• Actual value — considering wear and tear (cheaper policy, lower compensation)

Always choose replacement value — premium difference is 10-20%, but compensation difference can be several dozen percent.

Cost Comparison

Average annual home insurance premiums in Poland (2025):

That's PLN 40-80 monthly for full protection — less than one restaurant dinner.

How to Report Damage?

1. Secure the scene — don't remove traces before documentation
2. Take photos — document everything in detail
3. Report damage — preferably within 24-48 hours
4. Collect receipts — receipts, invoices for destroyed items
5. Police report — mandatory for theft or vandalism

How Can Freenance Help?

Insurance is a fixed cost worth including in the budget. Freenance will help you:

• Budget premiums — add insurance as cyclical expense
• Track apartment value — update sum insured with value growth
• Monitor home expenses — "housing" category shows full maintenance cost
• Plan emergency fund — in case of deductible and costs before compensation payout

👉 Manage household budget with Freenance — freenance.io