Property insurance 

The tenant must insure the value of the building which he is occupying as he is liable for any damage to the building, unless he can evidence that someone else is liable. This obligation will normally be included in the lease agreement and it is advisable to show the lease agreement to an insurance broker to make sure that the insurance policy offers an appropriate cover. It is important also to insure the contents of the property.

One should always check whether the insurance company applies the so-called proportionality rule, which means that if the insurance cover taken out is only a percentage of the actual value of the assets at risk, the insurance company will not pay out the full insurance capital, but only an equal percentage thereof. It is, therefore, advisable to insure the actual value of the contents, or to sign a contract with one of the insurance companies which does not apply the proportionality rule. It is also possible to ask for an insurance cover which will not take into account any depreciation on furniture (but not on clothes, electrical appliances, etc).

A useful addition to the home contents insurance is a separate all risks insurance policy against any accidental loss or damage of valuable items, which are not necessarily kept at home. It gives a wider cover than, and usually it does not apply to any deductible in the event of a loss.

For motorcar owners, third party liability insurance is obligatory. It is actually a requirement to obtain a licence plate for the car. If one can prove that one has been driving without a claim for a number of years (a letter from the previous insurance company should be sufficient), one can negotiate a lower insurance premium.

Comprehensive (all-in insurance) is available but normally not for cars which are over five years of age. For those cars, one can usually take out a mini-comprehensive policy which provides cover for fire, theft, breakage of glass and a limited material damage insurance.

As for the insurance against theft of the car, the insurance company is quite strict about requiring a car alarm, which must be installed in accordance with certain specific requirements. Personal effects left in the car are, unless they are locked away in the boot and the car is parked in a safe place, not insured.

Injuries to the driver should be covered by a separate insurance policy, unless the comprehensive insurance policy covers this. It is also advisable to take out additional insurance to pay for the legal costs in the case of any disputes relating to an accident.

As one is liable for any damage caused to third parties by members of one's family, one's property or pets, it is always advisable to take out a so-called family insurance.  This insurance is not compulsory unless you employ domestic help, a gardener, etc...

Please note that most insurance contracts can be terminated every year, upon three months' notice.

 

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