MULTIPLE RISKS HOUSEHOLD
Frequently asked questions about multiple risks household insurance.

What is a multiple risks household insurance?
In addition to the mandatory insurance, property owners often choose to buy a broader insurance covering other risks.

Multiple risks insurance provides a range of optional cover for damage to the property and its contents, and it may include civil liability cover.

Is household insurance mandatory?
Fire insurance covers the risk of damage to property caused by fire; it is mandatory for any condominium-based property. This insurance must cover the individual unit and the building's common parts (roof, stairs, lifts, garage, etc.).

This insurance must be bought by the owners of each individual unit (condominium member). Should they fail to act accordingly within the deadline and do not buy the cover for the amount resolved in the relevant condominium meeting, the condominium manager should proceed accordingly, and be reimbursed by the condominium members later.

This requirement of fire insurance may be fulfilled by buying an insurance covering "Fire and Natural Forces" or included in "Multiple Risks" insurance.

Which risks are covered by the multiple risk household insurance?
Multiple risk household insurance may provide for:

• repair of damage to the building, individual unit or other units because of risks other than the fire risk, such as flooding, storm and electrical risk;
• repair of damage caused to the household's movable property;
• indemnity for theft or robbery;
• the insured's civil liability, and that of any individual belonging to his/her family (if it is necessary to indemnify third parties for damage caused);
• indemnities for death of the insured or his/her spouse because of fire, lightening, explosion or robbery, if occurred in the household.

Usually multiple risk insurance covers a pre-determined set of risks, and other additional cover may be included. The premium is assessed based on the cover bought.

For what sum should be the property be insured?
The policyholder is responsible for determining the insured sum at the beginning and throughout the insurance policy.

The insured sum amount should correspond to:

• the cost of rebuilding the property, bearing in mind the construction type and other factors that may affect the said cost;
• the value of the property for local tax purpose , where the building is to be knocked down or expropriated. To determine the insured sum, every property element should be taken into account (except for plots of land), including the proportional value of the common parts.

For what sum should be the contents of the property be insured?
In this case, the amount of the insurance should correspond to the cost of replacing goods.

The insurance proposal should indicate clearly every item to be insured and its value. The most expensive and rarest goods (like antiques, works of art and jewellery) should be specifically described, if possible using photographs and a description of their features; a value per piece should also be provided.

In case of a claim, the insured shall be liable to produce any evidence, meaning that he/she must prove that damage has occurred and that the goods belonged to him/her or were in his/her custody. Hence, it is important to keep every document that proves that those insured goods did exist, in particular, detailed receipts that prove they were actually bought.