At first glance, many apartment buildings seem protected – after all, each apartment owner has their own home insurance. In reality, however, the most critical parts are often left uninsured: the roof, stairwells, technical systems, and other shared structural elements.
“Liability insurance is not just an extra guarantee – it’s a practical risk management tool for situations where unexpected damage may become the collective responsibility of the entire association,” says Liisi Murde-Parvelt, Head of Product Development at IIZI.
It’s commonly believed that an apartment association is only responsible for things like keeping the stairwell clean or maintaining the garbage area. In truth, the association is also liable for the safety of the entire building and any damage caused to third parties. If someone slips on an icy sidewalk, a chunk of ice falls on a car from the roof, or a storm tears off sheet metal — the association (meaning all apartment owners collectively) is legally responsible.
The risks go beyond weather
“Every board should consider how to reduce financial risk for both themselves and the residents,” adds Murde-Parvelt. Weather is just one part of the risk landscape. Aging infrastructure can also cause damage — crumbling facade plaster, a broken gutter, or a fallen tree can result in significant property damage or personal injury.
Real-life examples:
- Falling ice from roof
The association did not clear the roof in time. An ice chunk fell on a car, causing €6,500 in damage. Covered by liability insurance. - No anti-slip measures taken
The sidewalk was not sanded in time, a pedestrian fell and broke their arm. The claim was settled under the liability insurance policy. - Tree damages neighboring property
During a storm, an old tree from the association’s yard fell on the neighboring building, damaging the roof and fence. Covered by liability insurance.
Insurance = affordable peace of mind?
“Price should never be the only deciding factor, but many associations don’t realize that not having insurance can result in unexpected financial burdens for residents,” explains Murde-Parvelt. “While pricing depends on many factors, insurance is often affordable compared to the potential costs of damage.”
It’s also worth noting that in many cases, clients choose liability limits that are too low. Based on real-life cases, the recommended minimum limit should start at €100,000.
Real-life cost examples per apartment for property + liability insurance:
- Stone building with 32 apartments (built in 1968, renovated in 2018): €19/year per apartment
- Wooden building with 10 apartments (built in 1900, renovated in 2020): €27/year per apartment
- Stone building with 60 apartments (built in 1979, renovated in 2019, 2 claims): €27/year per apartment
These numbers show that even associations with limited budgets can ensure peace of mind — the cost is less than one shopping trip, but the savings can reach thousands if something goes wrong.