Homeowners insurance in Cyprus in 2023. Best homeowners insurance in Cyprus.

Homeowners insurance

Homeowners insurance covers your property, personal belongings, and assets from damages.

In the event of covered damages and loss, your policy can also pay for accommodation if you need to stay elsewhere while your house is being repaired or even rebuilt.

It can also cover accidents or injuries and pay for legal expenses. A homeowners policy can help pay for events on your property that result in lawsuits for which you may be liable.

Most lenders require it to protect them in the event your home suffers any damage.

As your home is one of your biggest investments, understanding what your homeowner insurance covers is essential should the worst happen.

This guide will examine all you need to know to find the best homeowners insurance in Cyprus.

Table of contents

What does homeowners insurance cover?
Homeowners and contents insurance
Houseowner insurance exclusions
How much is homeowners insurance?
What is the rebuild cost for insurance purposes?
Homeowners insurance compare
Best homeowners insurance Cyprus

What does homeowners insurance cover?

All homeowners insurance is different, but most policies have coverages in common.

Homeowners insurance protects you and your assets, but what does it cover?

When the unthinkable happens, many people can’t afford to rebuild their homes and replace their belongings. That’s why knowing what your homeowner's policy covers is so important.

In general, homeowners insurance policies are customizable “package policies.” They contain various coverages in one policy.

Here are the details of what most of them cover.

Building insurance

This portion of the insurance covers the house. Also known as dwelling coverage, building insurance protects against property damage and can pay for repairs or rebuild work.

It can also cover additional living expenses and temporary accommodation if a covered event forces you to stay elsewhere.

Covered events and damages include:

Fire
Vandalism
Extreme weather
Floods and natural disasters

Contents coverage

Also known as personal property, this coverage protects your personal belongings and the contents of your property.

Contents coverage can help pay for covered losses and damage after a burglary or if you need to replace your items after a fire.

Loss of use coverage

Depending on your policy, this coverage can be provided as an additional extra.

In addition to building and contents insurance, loss of use can help pay for living expenses and short-term living arrangements should you need to move out temporarily.

If you experience a break-in and your home becomes inhabitable, loss of use will cover your living expenses while builders do the repair work.

Liability coverage

Designed to cover damage associated with accidents and injuries sustained by guests on your property, liability coverage can protect you against costly claims.

This portion of your house insurance can help pay for medical bills, pain and suffering, loss of income, and legal expenses in case of a dispute

Employers liability insurance

This coverage will protect against claims from employees you hire to work in your home (such as cleaners or babysitters).

Employers' liability can help pay for injuries sustained while working or for any medical bills if they become unwell. It will ensure you don’t face compensation costs on your own.

Homeowners and contents insurance

Homeowners and contents coverage financially protect your belongings and the contents of your house. It can pay for any belongings in the event of covered perils.

Ideally, your contents insurance will fully protect your belongings.

To avoid misunderstandings about what contents are covered, you need to calculate the estimated value of what it would cost to replace your possessions.

To estimate this figure, you can calculate the face value of your items instead of their current value. This is because contents insurance compensates items on their acquisition value.

For example, suppose you bought the latest smartphone for €1500. Even if it costs €300 now, the insurance will still pay €1500.

Note: If you are unsure how to calculate the overall cost of your home belongings, you can speak with an experienced insurance agent.

Most standard contents insurance covers everyday household items, including:

Furnishings
Household devices
Electrical appliances

In addition, certain expensive items can be covered:

Professional equipment
Hobbyist items (such as golf gear)
Valuables (such as artwork and jewelry)

You should also declare whether anything outside your house needs coverage, for example:

Antennas
Solar panels
Garden sheds
Garden furniture

A note on valuables

Most insurers will ask you to declare your valuable items worth more than 2000 euros.

You must present receipts and certificates of authenticity for expensive items worth more than 2000 euros each (for example, jewelry or artwork).

Houseowner insurance exclusions

While standard home insurance shields you from most damages, some exceptions exist.

The following situations are typically not covered.

Flooding
Earthquakes
Sewer backups
Wear and tear or neglect
Pest and mold infestations
Power failure
Nuclear hazard
War and government action

1. Flooding

Most standard homeowners insurance covers certain types of flooding (for example, leaking pipes - with exception). However, flooding caused by weather events is usually not covered.

Any natural water damage caused to your home by extreme weather typically won’t be covered.

To cover these events, you may need a separate house insurance policy. This coverage is vital if you reside somewhere prone to heavy rainfall, storms, and flooding.

2. Earthquakes

Homeowner insurance typically does not cover any natural disasters involving shifts in the Earth’s movements. For example, earthquakes, mudslides, landslides, and sinkholes.

As natural disasters in one location affect many homeowners at once, insurance providers don’t tend to cover them in full. Instead, you can purchase an additional policy to cover such events.

If you live in an earthquake-prone area, earthquake insurance is an essential policy to protect you from unnecessary financial stress if the worst should happen.

3. Sewer backups

Heavy rainfall, melting snow, or sewer blockages can cause floods and cause extensive water damage to your home.

Depending on the cause, the repair costs may be on you without this insurance.

Homeowners' insurance typically doesn’t cover sewage backup, but a specialized flood policy may cover it.

4. Wear and tear or neglect

Wear and tear damage is often in the same category as negligence. Most homeowners insurance doesn’t cover damages arising from neglect.

For example, your homeowner's insurance likely won’t cover costs to replace your plumbing system if the damage results from everyday wear and tear.

Unanticipated events (such as burst pipes) are usually covered, but exceptions may exist. Certain events might be seen as neglect, depending on the circumstances.

5. Pest and mold infestations

Mold and pest infestations result from negligence, even though they cause unexpected damage to your home.

Infestations such as this are preventable. Therefore, the associated repair costs are typically not covered by homeowner insurance.

Preventing pests and mold from damaging your home is part of maintenance, for which insurance companies are not responsible.

6. Power outages

Most homeowners' policies do not cover damage caused by power outages and surges.

However, if a power failure causes fire damage to your home, your insurance may cover it.

7. Nuclear hazard

This exclusion refers to the damage sustained by any nuclear hazard, such as radiation.

Most homeowners' policies do not cover this peril. However, nuclear reactions that cause fire damage to your home may be covered.

8. War and government action

Homeowners' insurance does not cover any damage caused by war and government action. Any kind of damage caused by war is excluded from all home insurance.

How much is homeowners insurance?

The cost to acquire homeowners insurance depends on the coverage you need.

In summary, the following factors affect the cost of insurance for homeowners.

The total rebuild costs
Any monthly rental income costs
The value of your insured contents
The total built-up area and any renovation
Building construction materials (e.g., masonry)
The age of the building (or year of construction)
The type of property (e.g., apartment or semi-detached)
The number of floors and types of rooms (e.g., basement)
If the property is left unoccupied and for how long at a time
Previous and current claims history

What is the rebuild cost for insurance purposes?

Calculating the rebuild cost of your house is necessary to get a homeowners insurance quote.

If your property was damaged or destroyed beyond repair, the rebuild cost is the amount of money required to rebuild your home from scratch.

The rebuild cost can be broken down into two main factors.

Costs of labor
Costs of materials

There are also two primary ways to calculate the rebuild cost of your house.

Expensive option. Hire a chartered surveyor to conduct an assessment.
Cheap option. Use your area’s average construction cost per sq.m. in a calculation.

How do you calculate the rebuild cost of your house?

If you opt for the cheap way to calculate the rebuild cost of your house, you need to find the average construction cost per sq.m. in your area.

Then, multiply the total area of your house by the average construction cost. That will give you the reconstruction value of your home (excluding the value content).

The total rebuild cost is usually lower than its market value, as it doesn’t account for the cost of the land on which your home is built.

Homeowners insurance compare

When comparing homeowners insurance, you will have all-risk or named perils contracts to consider. It’s important to understand their differences.

All-risk policies cover all risks and perils that the contract doesn’t specifically exclude, with few limits. These insurance policies are also called open perils policies.

In contrast, named perils policies explicitly name the perils they cover. They cover only those events listed in the contract. As such, many perils may not be covered.

For example, a named perils contract that only covers natural disasters won’t pay for damages caused by an unexpected fire. In comparison, an all-risk contract may include both in one policy.

When you receive homeowners insurance quotes, your needs will be assessed and determined by underwriters who will analyze the risks of insuring you.

Only international underwriters provide all-risk contracts, and Cyprus works alongside local and international underwriters.

At Pitsas Insurances, we cooperate with both local and international underwriters to provide you with the best house insurance.

Best homeowners insurance Cyprus

If you are looking for the best home insurance companies, you can find them here. 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 an affordable homeowners policy, use our tips to save money.

Boost your security. Installing security systems in your home (such as smoke detectors and burglar alarms) will help lower your premiums.

In addition, high-quality locks on your doors and windows can also help you save money.

Assess and renew your policy. When your homeowners insurance comes up for renewal, assess your options to consider getting a new quote. You might find a new and attractive offer.

Avoid paying in installments. You can usually bring down the cost of your homeowners insurance by paying your premium upfront. Paying every month incurs interest, so you might want to avoid paying in installments.

Increase the excess of your policy. You will reduce your premium if you raise the excess of your policy. Make sure you can afford this, as it affects your claim contribution amount.

Combine policies for a discount. If getting value for money is your primary goal, combining building coverage with contents insurance might suit you. You can usually get deals with combined policies.

Save with a no-claims discount. One effective way to get cheap homeowners insurance comes from a no-claims discount. In general, you save more money the longer you go without claiming.

Key takeaways

Homeowners insurance covers your property and personal belongings from covered loss and damage.

Most mortgage companies and lenders require you to have homeowners insurance.

Homeowners insurance usually includes building insurance, contents coverage, loss of use, personal liability, and employers liability insurance.

Most standard homeowners insurance comes with exclusions. To cover excluded events, you may need a separate house insurance policy.

Knowing how much it would cost to rebuild your home is necessary to get a homeowners insurance quote.

When comparing homeowners insurance quotes, you can choose between all-risk or named perils contracts.

If you have any questions about homeowners insurance in Cyprus, you can speak with one of our trusted insurance experts.

Homeowners insurance quote

Failure to adequately insure your home can cause unnecessary financial problems in the event of theft or damage. That’s why we offer customizable homeowners insurance policies to protect your house and belongings.

Why insure your home with Pitsas Insurances?

Low excess rates
Highly competitive quotes
Comprehensive all-risk contracts
Simple and clear terms and conditions
Special offers for temporary and holiday homes
Additional coverage types, including employers' liability
Customizable insurance packages suited to your budget

For more information about homeowners insurance, please visit our website.

To get a personalized quote for homeowners insurance in Cyprus, you can complete our questionnaire.

Pitsas Insurances is part of Amazon Group Services. As a renowned group of companies, we work with many civil engineers who can help you accurately calculate the rebuild value of your home.