Home insurance is the oldest and most familiar policy in most households – which is exactly why it tends to get the least attention. Yet the idea behind it is simple: in exchange for a regular premium, the insurer agrees that for the events set out in the policy – fire, storm, burst pipes, burglary and the like – it will restore what the damage took from your home, up to the agreed sum insured.
- The two main pillars of home insurance are buildings cover and contents cover – the optional extras (glass, liability, assistance and the like) build on top of these.
- A policy is only as good as its sums insured are realistic: the true rebuilding value is the foundation of proper cover.
- The premium depends on many factors, so we won't quote a figure here – the online calculator (in Hungarian) gives you a picture in minutes, and we'll work out the details together.
How does it work in practice?
Home insurance is what's known as indemnity insurance: it doesn't build up savings, it takes the unexpected, large expense off the family's shoulders. The policy sets out which insured events (types of damage) the insurer covers, up to which sum insured, with what deductible, and with what exclusions. When a claim happens, the insurer pays out according to the policy terms – so the real test of a policy isn't the day you sign it, but the first serious claim.
Cover is made up of three layers: buildings and contents cover, plus optional add-ons. Our what it covers and what it doesn't article sets out exactly what each layer includes.
What makes a home insurance policy good?
Three things. First, the sums insured are right – the building is insured at its true rebuilding value, and contents are based on a realistic, inventory-style estimate, so proportional settlement never kicks in at claim time. Second, the scope of cover fits your life – a panel flat, a family house and a let-out flat don't call for the same good package. Third, the terms are known – deductibles, limits and exclusions don't come to light when a claim happens, but before you sign, because someone read them properly.
None of this is rocket science – but all three deserve attention. That's the broker's job: needs assessment, competitive comparison, a clear side-by-side table – the decision stays yours.
What home insurance can't do
It's worth being honest about the boundaries too. Home insurance isn't a maintenance contract: damage from wear and tear or neglected repairs typically isn't covered. It isn't construction cover either: the risks during a major renovation or extension are a separate matter – we write about that on epites.biz (in Hungarian). And it doesn't insure the condominium's shared property: the stairwell, the roof and the shared building services are the territory of tarsashaz.biz (in Hungarian) – our where mine ends and the building's begins article covers that boundary.
What does it cost – and why don't we quote a price?
The premium depends on the building's type, age and location, on the sums insured, the deductible and the add-ons chosen – the same cover can come out at a meaningfully different premium for two homes. Quoting a general figure would therefore be misleading. What we do instead: we explain the factors behind pricing openly, and the actual numbers come from the online calculator and competing offers from several insurers – based on your own details, not averages.
The next step is simple: run the numbers in a few minutes, then let's talk it through – or start at the basics and read about who needs home insurance, and who simply benefits from it.
A question about your own home? Run the numbers in minutes with the online calculator (in Hungarian), or book a free 20-minute consultation →
