Starting from this year Civinity has started to offer insurance to its clients – residential apartment buildings owners. More than 340 apartment buildings in Jurmala are managed by Civinity group company Jūrmalas Namsaimnieks. These buildings are now insured to protect the owners from significant expenses in various accidents. This is one of the rare practices in Latvia when house manager insures apartment buildings. Thanks to this fact more than 75 percent of apartment buildings in Jurmala now are insured.
Apartment building insurance protects apartment owners from unnecessary worries and spending. It provides financial support in the event of common residential building property damage.
Jūrmalas Namsaimnieks has insured houses against sudden and unforeseen events that may occur as a result of fires, exploding gas cylinders, roof damage due to hail, falling trees or snow loads. Insurance also covers engineering systems, such as water, heating or sewerage, damage. In the event of such accident or emergency not only the damage caused to the common property is covered, but also the necessary costs to restore the damaged communications are reimbursed.
“Insurance is sometimes called prepaid costs for accident elimination. I believe that Latvia should introduce compulsory insurance for apartment buildings, similar to transport insurance. This would mean a lower financial burden for the residents, especially in cases when people are living in old apartment buildings and risk of accidents is much higher. For example, in Jurmala 99 percent of apartment buildings are more than 50 years old, so having insurance is very big step forward in order to maintain the value of our client’s real estate.” – says Igors Krivoručko, manager of Jūrmalas Namsaimnieks.
Statistics from insurance companies show that 60 percent of reported claims are usually related to plumbing system accidents. The second most common cause of accidents (16 percent) is illegal actions of third parties, such as vandalism, graffiti, or damage to the house as a result of a vehicle collision. Damage caused by natural disasters, such as trees falling on the roof of a house during a storm, is also among the popular ones (12 percent).
Since the beginning of the insurance, Jūrmalas Namsaimnieks already had several insurance events. For example, in a residential house the exterior door was broken, where its replacement would have cost the owners more than 800 euros. Because the house was insured, these costs were fully covered by the insurance company, not the owners of apartments.