How Much Does Home Insurance Cost and What Determines the Price?

Your home is a place where you feel comfortable, safe and at ease. However, even the safest homes can experience unexpected events: a burst pipe, fire, theft, storm or electrical failure. Any of these incidents can cause significant damage to your property and lead to substantial costs. That is why home contents insurance or home insurance is becoming an increasingly important choice for every homeowner. 

On average, home insurance costs between EUR 50 and EUR 400 per year, but what determines the price? Is it worth getting insurance if you live in a quiet area and nothing bad has ever happened before? Will insurance really cover all your losses? Let’s take a closer look. 

How much does home insurance cost? 

The cost of home insurance depends on a number of factors. As a general guide: 

• Insurance for a small, basic house or apartment may cost around EUR 50–100 per year. 

• For a mid-range house or home, you may pay around EUR 100–200 per year. 

• For a larger, more expensive home, including home contents and additional cover, the cost can be EUR 200–400 per year or even more. 

These are only general estimates – the actual cost depends on what you insure and which types of cover you choose. 

What determines the price? 

There are several factors that can affect the cost of your home insurance: 

1. Building type, construction and year of construction 

The newer the house, the lower the risk is generally considered to be, as newer buildings tend to have more reliable structures and a lower likelihood of water damage, fire or other problems. Wooden houses are often more expensive to insure than brick or masonry buildings. 

1. Property size and value 

The larger the property and the more valuable its contents, the more you will generally pay for insurance. For example, if you insure not only the building but also your home contents – furniture, household appliances, computers, clothing, artwork and other belongings – the cost of your insurance will increase. 

1. Location 

Location matters too – whether your property is in a city, suburb or rural area. Some areas may have a higher risk of theft, while others may be more exposed to natural hazards. Insurers may also consider whether the property has security measures such as an alarm system or gates, as well as potential liability risks – for example, whether a burst water pipe could cause damage to your neighbours’ property. 

1. Cover you choose 

The most basic option is building-only insurance. If you want cover for interior finishes, home contents, broken windows, third-party liability, home assistance and other incidents, each additional type of cover increases the price but can also provide significantly broader protection. 

Home contents insurance: do I need it? 

The short answer is – YES. Even if you live in a quiet area, you are not protected from every possible risk. Water could damage your home, an electrical short circuit could cause a fire, or a third party could accidentally cause damage – for example, by driving into your property or building. 

If you bought your home with a mortgage, home insurance is also usually required by the bank. But even if it is not mandatory, isn’t it better to have peace of mind knowing that if something unexpected happens, your insurance can help cover the losses? 

What types of property can be insured and against which risks? 

Before choosing home or property insurance, it is important to understand exactly what can be covered and what risks you can protect yourself against. Insurance can provide broad protection – covering both the building itself and your home contents, with a wide range of potential risks. Let’s take a closer look at what can be insured and what types of cover may be available. 

Insurable property: 

• Residential houses, apartments, garden houses and holiday homes 

• Outbuildings: sheds, garages and other auxiliary buildings 

• Home contents – furniture, household appliances, interior items, computers, clothing and household tools 

• Engineering systems – heating boilers, pipes and electrical installations 

Insured risks: 

• Fire, explosion and lightning 

• Water damage (burst pipes, water leaks) 

• Theft and burglary 

• Broken glass, damaged doors or windows 

• Storms, hail, floods and snow slides 

• Electrical faults and power surges 

• Impact by vehicles (for example, if a car hits your driveway gate or the wall of your house) 

• Personal liability insurance – if you accidentally cause water damage to your neighbours or a guest is injured in your home 

• Home assistance – emergency tradespeople such as plumbers, electricians and carpenters 

Some insurers may also cover damage caused by children or pets, as well as accidental spills onto electronic equipment. 

How do you report an incident to your insurer? 

If something goes wrong, it is important to act quickly and clearly: 

1. Document the incident: take photos, write down what happened and keep the contact details of any witnesses. 

1. Contact your insurer: you may be able to report a claim online (via an app or website), by email or by phone. 

1. Complete a claim form: this is usually a simple form requiring the date, a description of the incident, details of the damage and photographs. 

1. Provide any additional documents: a police report in the case of theft, a fire service report in the event of a fire, or receipts if you have already purchased replacement items. 

1. Wait for the payment or a technician: in some cases, the insurer may send an expert to assess the damage, while in others they may simply transfer the compensation. If home assistance is included in your policy, a technician may be sent to help. 

The most important thing is to report the incident as soon as possible. Most insurers require claims to be reported within 3–7 days of the incident. Find out how long it takes for an insurer to assess a claim. 

What should you know before taking out home insurance? 

Before choosing home or property insurance, pay attention to a few important points: 

• What is covered? Are you insuring only the building, or your home contents as well? Is personal liability insurance included? 

• What risks are covered? Check whether you are protected against water damage, fire, theft, electrical faults, storms, home assistance and other risks. 

• What are the coverage limits and excess? Find out how much of a claim you would have to pay yourself under the insurance excess and what the maximum payout would be. 

• What areas of the property are covered? Are basements, sheds, garages and other outbuildings included? 

• Can you change the policy? Ask whether you can adjust your cover later, especially if your property or place of residence changes. 

Ultimately, insurance is not just about how much apartment insurance costs. It is also about your safety, peace of mind and knowing that you will not have to deal with unexpected losses alone. Property insurance, home insurance and personal liability insurance can all help protect you from unforeseen costs. 

If you want to protect your home, property, home contents or apartment against potential damage, get insured and, even better, compare insurance options online, choose the offer that suits you best and enjoy greater peace of mind.