In short: what are the most common insurance myths?

From time to time, as has been the case in recent weeks, the Czech Republic is plagued by various natural disasters, torrential rains, hail, floods and even a tornado. The damage to the destroyed property then reaches tens of billions of crowns.

Many Czech households have their property insured and the consequences of damage can be covered by paying insurance benefits. In all cases, the correct procedure must be followed. Insurance experts agree that some people are subject to various false claims, which can increase the amount of damages.

Document the mess and start cleaning up

One of the false myths is that people should not touch anything, resp. begin to erase the consequences of the damage until the arrival of a representative of the insurance company. But the opposite is true. In any case, in order to protect health and property, it is necessary to start repairing the damage as soon as possible. “One of the reasons may be that the damage doesn’t spread or some things don’t start to go bad,” Marek Vích of insurance company Kooperativa told Právo.

“If, for example, the roof has been damaged, it must be photographed and at least temporarily covered so that it does not rain in the house, for example. There is a sentence in each insurance condition that the customer must prevent consequential damage. And at the same time, if you buy a sail for this, for example, the insurance company will reimburse you as part of the so-called salvage work,” added Kateřina Ikráthová from the company. Allianz insurance for Právo.

However, the consequences of the damage must be documented before it can be removed. “But it’s important to photograph everything, both overviews and details. These days, when pretty much everyone has a quality camera in their mobile phone, that shouldn’t be a problem. Then it is possible to agree on a specific procedure by telephone with the operator of the insurance company,” said Petr Milata of ČSOB Pojišťovna.

Damage reporting speed does not affect the amount of performance

Some people also believe that the insurance benefit, ie compensation for damages suffered, will be reduced if they delay reporting it. Representatives of insurance companies agree that this statement is nonsense.

Each customer gets everything to which he is entitled according to his contract

Ivana Buriánková, Generali Česká pojišťovna

Of course, the insurance company should be informed as soon as possible, due to the dispatch of a liquidator. “Especially with natural damage, people in most cases do not have the time or the thought to report the damage immediately. They are engaged in cleanup, property salvage or cleanup work. There is no There is certainly no need to worry that the speed of reporting affects the level of performance. Every customer will receive everything they are entitled to according to their contract,” added Ivana Buriánková from Generali Česká pojišťovna.

The situation can be resolved without documents

Exceptions are not cases where people lose all their documents, insurance contracts, etc.

“It is not necessary for the customer to have documents with him, any information that the operator finds the right insurance contract is sufficient to declare the damage. In these cases, we do not insist that the customer directly dictates the contract number, but we will find it, for example, according to the birth number and check the place of insurance,” said Renata Čapková of Česká podnikatelská pojišťovna for Právo.

“Insurance companies always base themselves on a list of damaged objects that the customer draws up. In the case of major claims, where it is assumed that the documents, papers or receipts have been destroyed, it is therefore not realistic for insurance companies to require that the relevant document be attached to the individual items of the list.To determine the amount of damage, the prices of specific damaged items (or comparable items) are used, to which the item The insurance company technician and later the liquidator also rely on photographic documentation, the state of the residues or testimonies of other people, neighbors, etc. Since customers are usually very stressed in this situation they are often unable to list all the damaged items, so of course it is true that the customer can gradually add things,” Vích added.

“It would be nice if people thought about it in advance and stored important documents on acquisitions, acquisitions, purchase contracts, etc., preferably in a safe,” recommended Eva Svobodová of the company. UNIQA insurance.

A tornado is an extremely strong storm

Although a tornado is very rare in our conditions, people don’t have to worry about it not being covered by insurance.

“It’s an element – basically an extremely strong storm. Natural disasters are covered by property insurance. It is not necessary to have additional insurance. Insurance against the consequences of natural disasters is part of the basics of any property insurance, so this risk is in principle covered by all insurance contracts of this type,” Buriánková added.

Flood and deluge

People also often confuse the difference between flood and inundation.

“Floods are the inundation of larger or smaller areas by water which has poured from the banks of streams or the banks of reservoirs or which has ruptured these banks and dams or which has been caused by a sudden and unexpected reduction in the flow profile of the flow Flood means the inundation of land on which the object of insurance is located, dripping with water from torrential rains or standing water in a body of water. continuous water due to insufficient outflow of atmospheric precipitation,” explained Petr Schűtz from Slavia pojišťovna.

“Flooded places don’t have to be close to a watercourse – for example, water runs down slopes,” Ikráthová added.

Beware of underinsurance

It’s also a common mistake for people to buy home insurance and not update their policies anymore. They believe that their property is adequately protected and that in the event of a claim, the insurance benefit will cover the damage.

But it is a mistake. During the term of the insurance contract, the value of the property often increases above the level at the time of its conclusion.

“If the insured object is insured, the insured will not receive the amount indicated in the insurance contract in the event of total damage, as many unfortunately believe, but the amount of compensation will correspond to the difference between the amount stated in the insurance contract and the actual value of the thing. Underinsurance is also assessed for larger partial claims,” added Michal Kárný from Direct pojišťovna.

“Therefore, we strongly recommend that customers update the sum assured with their dealer regularly, as the price of construction work and materials increases over time and the house that the customer purchased 10 years ago for three million crowns no longer has the opportunity to build at this price level.Therefore, the sum assured must be regularly updated or a regular valuation can be activated on the contract, which will ensure that the sum assured is put updated automatically,” added Ikráthová.

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