Home insurance in Cyprus in 2023. Best home insurance in Cyprus.
Although all home insurance is different, most policies share similarities and have coverages in common.
Also known as homeowners insurance, home insurance covers your home and financially protects your property and personal belongings from covered losses and damages.
Whether you are the victim of theft or a fire, a home insurance policy can pay for the costs to repair and replace items or even rebuild your home.
It can also pay for legal expenses if an injury on your property results in a lawsuit against you. Your cover is designed to help you pay for expensive fees, from medical bills to legal ones.
Not only that, it’s required by most mortgage companies to protect them if your home experiences any damage.
Your home might be your biggest investment, so understanding what your policy covers could prove essential should the worst happen.
Here is our guide to the best home insurance in Cyprus.
Table of contents
- What does home insurance cover?
- Types of home insurance in Cyprus
- Home and contents insurance
- Home insurance exclusions
- Home insurance compare
- Best home insurance Cyprus
- Home insurance cost
What does home insurance cover?
Home insurance is all about protection: for you and your assets. But what does it cover?
If the worst were to occur, it would be difficult for most to rebuild their home and replace everything in it, so knowing what your home policy covers is so important.
Home insurance policies are generally “package policies,” which contain various coverages to protect your property from damages while also saving you from liability.
Here are the details of what most policies cover.
This insurance covers your personal belongings and the contents of your home. If disaster strikes, covered damages will be paid for.
Home’s content coverage can help pay for covered losses, such as a burglary, fire, or certain weather events. It can help you pay for content replacements and repairs.
This type of insurance covers the structure of your home. Also known as dwelling coverage, home structure insurance covers property damage and pays for repairs or reconstruction.
It can also pay for temporary living expenses if you need somewhere to stay after covered events damage or destroy your house.
Some covered events and damages include fire, earthquakes, vandalism, extreme weather, and floods.
Loss of use
In addition to contents and structure insurance, loss of use coverage can be provided as an additional policy. However, it might already be part of a package policy.
If your home becomes inhabitable due to a burglary and subsequent repairs, this cover can help you pay for temporary accommodation while your house is being renovated.
Employer's liability insurance
This coverage protects you if a claim is made against you by anyone working in your home (such as a babysitter or maid). You might have to pay for medical bills associated with injuries they sustain while working for you or pain and suffering should they become unwell.
Employer's liability insurance will ensure you don’t have to pay out-of-pocket compensation costs if the worst-case scenario should arise.
You might need liability coverage to shield you from personal liability for certain events.
Home insurance personal liability
We all face the risk of personal liability. That’s why most standard home policies in Cyprus come with liability protection.
Home liability insurance in Cyprus in 2023
This portion of the policy protects you should someone get hurt while visiting your house or if you are found at fault for causing damage to someone else’s property.
Liability insurance coverage can shoulder any costly claims.
The number of lawsuits in Cyprus initiated by house guests increased by 250% in the last 5 years in Cyprus.
What is personal liability in home insurance?
Personal liability in home insurance covers damage or injury compensation claims made against you by a third party.
This portion of home insurance can help pay for any injuries and subsequent medical bills, while it can also pay for legal expenses if someone sues you.
Home insurance public liability
Public liability in home insurance is a commercial version of the policy. It covers compensation costs if a claim is made against your business for damage or injury.
For example, a visitor could slip and fall at your residence. You might owe large sums of money to the injured party for medical fees.
Types of home insurance in Cyprus
Cyprus has the following types of home insurance.
Standard homeowners insurance is designed for those who permanently live in their house, as opposed to temporarily living there and renting it.
Most home insurance covers certain damages and losses. It contains liability cover, but standard policies have limitations that can be covered with separate policies (e.g., electrical equipment insurance, all-risk insurance, etc.).
Home insurance protects you financially from damage to your home and belongings. Whether you need help to rebuild irreparable areas of your home or pay for minor repairs, that’s what your homeowner's policy is for.
Covered losses include damages caused by fire, earthquakes, certain weather events, and theft.
This type of insurance protects a rented property and contains personal liability coverage.
As a landlord, liability coverage will pay for legal expenses if you face a lawsuit for damages or injuries that are your fault.
For example, if a tenant sues you for tripping over broken flooring, liability coverage will protect you financially and allow you to pay medical and legal fees.
Like most home insurance, most landlord insurance covers your property from extreme weather and fire events.
While landlord insurance is not required of you by law, it is required by most lenders if you have a mortgage or are financing the property.
As home insurance does not cover any rental homes, you need landlord insurance to insure you to rent your property.
To learn more about landlord insurance, please see our landlord insurance guide.
Holiday home insurance
Also known as second home insurance, holiday home insurance covers property that isn’t used as a primary or full-time place of residence.
This insurance is necessary for those who stay in their holiday home in Cyprus while traveling but rent it out when they do not use it.
It’s vital coverage for holiday homeowners regardless of their location or how often they visit their second home.
Like most home insurance, holiday home policies can financially protect the property’s structure and contents inside the home, but all policy details vary.
Depending on the property type, the details of a policy are changeable.
Home and contents insurance
This type of insurance financially protects the contents of your home and your possessions.
Home and contents insurance, sometimes called personal property insurance, provides financial protection should your home or belongings suffer any damages.
To be fully protected by your home insurance and avoid misunderstandings about what is covered, you should calculate an estimated value of replacing your belongings.
Note: You need to calculate the face value cost of the items and not their current value, as the insurance compensates items on their acquisition value.
For example, if you bought a smartphone for €900 and it now costs €100 to sell it, the insurance will still pay €900.
If you are unsure how to calculate the estimated value of your belongings, you can speak with an experienced insurer to help determine the amount.
Most standard home and contents insurance covers common household items, such as:
- Electrical appliances
- Personal possessions
Additionally, extra coverage can be purchased for costly items, such as:
- Professional tools or equipment
- Hobby or gym equipment (such as bicycles)
- Valuables (such as artwork, antiques, and jewelry)
Note: Most insurance providers will ask you to declare your valuable items that are worth more than €2000. For such items, you must present certificates of authenticity and receipts (for expensive items, such as collectibles, jewelry, and artwork).
In addition to the above items, you should declare any objects outside your home that might need coverage, for example.
- Solar panels
- Garden furniture
Home insurance exclusions
Most home insurance policies do not cover damages caused by the following situations:
- Drain and sewer backups
- Earthquakes, landslides, and sinkholes
- Bird, vermin, or mold infestations
- Wear and tear or neglect
- Nuclear hazard
- War and government action
- Power failure
Although certain types of flooding are covered by standard home insurance (for example, leaking pipes - with exception), flooding caused by weather events might not be included in a standard policy.
Many properties are built near streams in Cyprus, so you should ensure that your insurance policy includes coverage for flooding.
2. Drain and sewer backups
This unfortunate problem arises when heavy rainfall, melting snow, or sewer blockages cause floods within a home.
Sewer backups can cause extensive water damage to your home, especially those areas connected to blocked or broken pipes. In this case, the repair costs may be on you depending on the reason for the blockage.
Home insurance policies typically don’t cover sewage backup, but your insurance provider may have a separate flood insurance policy specifically suited to it.
3. Earthquakes, landslides, and sinkholes
Home insurance typically does not cover natural disasters involving Earth’s movements, such as earthquakes, sinkholes, mudslides, and landslides.
Insurance providers don’t tend to cover such events in full, as these natural disasters in one location can affect many homeowners at once.
Therefore, separate policies can add to your house policy to cover natural disasters.
Earthquake insurance is essential insurance coverage in Cyprus. Most insurance companies provide it, but they insert a disproportionately high deductible.
4. Bird, vermin, or mold infestations
While mold and pest infestations can cause significant damage to your home, they are seen as negligence of one’s property.
As such, infestations are avoidable as they are preventable before they affect your house. Therefore, the repair costs associated with both are typically not covered by house insurance.
Preventing pests and mold from damaging your home is considered part of maintenance by most insurance companies, for which you are responsible.
5. Wear and tear or neglect
Home insurance doesn’t usually cover damages arising from neglect. Wear and tear is often in the same category as negligence.
For example, house insurance likely won’t cover costs associated with your home’s internal heating systems malfunctioning due to everyday wear and tear.
Accidental events, such as in the case of burst pipes, are usually covered. However, there may be exceptions. Burst pipes might be deemed as neglect, depending on the circumstances.
6. Nuclear hazard
This limitation refers to the damages sustained by any nuclear hazard, such as radiation.
This issue is not covered in most home policies. However, nuclear reactions that cause fire damage may be covered.
7. War and government action
Home policies and insurance companies do not cover damages caused by war. Whether a civil or nuclear war, they are excluded from any policy.
8. Power outages
Most home insurance policies do not cover damages caused by power surges and outages.
However, if a power failure in your house causes fire damage, your insurance may cover it.
Home insurance compare
When comparing home insurance, you should understand the difference between “all-risk” and “named perils” contracts.
When you receive home insurance quotes, your needs will be assessed and determined by insurance underwriters who will analyze the risks of insuring your house and belongings.
Cyprus has both local and international underwriters. Only international underwriters provide all-risk contracts.
At Pitsas Insurances, we cooperate with local and international underwriters to provide you with the best house insurance.
All-risk contracts cover all risks and perils in a contract, with few limits.
In contrast, all other contracts explicitly name the perils they cover, which applies to loss arising out of listed causes. As such, many perils are not covered.
Best home insurance Cyprus
Look no further if you are looking for the best home insurance companies.
Pitsas Insurances will help you find the best home insurance in Cyprus. If you are value-conscious, we will help you find cheap home insurance.
For affordable home insurance, use our tips to save money.
Boost security. Security systems (such as smoke and burglar alarms) and high-quality locks on doors and windows will help lower your premiums.
Renew your policy. Consider getting a new quote when your house insurance policy comes up for renewal. You might find the best deal available.
Avoid installments. You can usually cut the cost of home insurance by paying your premium upfront, as monthly installments incur interest.
Increase the excess. You will pay a lower premium if you raise the excess (the amount you contribute towards a claim).
Combined policies. If the value is important to you, combining contents and building coverage might suit you. You can usually get discounts with a combined policy.
No-claims discount. One effective way to get cheap house insurance comes from a no-claims discount. You save more the longer you go without claiming.
Home insurance cost
The cost of home insurance will vary depending on your needs and the policy’s coverage. The following factors affect the cost of your home insurance.
- Rebuild costs
- Rental income costs
- Value of insured contents
- Construction materials (e.g., concrete)
- The age of the building/ year of construction
- The total built-up area and renovation factors
- Type of property (such as bungalow or apartment)
- The number of floors and types of rooms (e.g., basement)
- How many days the property is left unoccupied (if applicable)
- Claims history (any previous and current claims)
Home insurance quote
Failure to insure your most valuable investment can cause significant financial problems in the event of theft or damage. We offer tailor-made home insurance policies to protect your house and its contents.
Pitsas Insurances is part of the renowned group of companies, Amazon Group Services, that employs licensed civil engineers who can help you accurately calculate the rebuild value of your home.
Why insure your home with Pitsas Insurances?
- Highly competitive rates
- Lowest excess on earthquakes
- Comprehensive all-risk contracts
- Easy to understand terms and conditions
- Special offers for holiday and temporary homes
- Additional coverage types, including employers' liability
- Tailor-made insurance packages suited to your budget
For more information about home insurance, you can visit our website.
To get a hassle-free and personalized quote for home insurance in Cyprus, you can complete the questionnaire.