In short
- A policy usually covers the flat, your belongings and your liability to neighbours, for example if you flood the flat below.
- If you buy with a mortgage, the bank usually requires the flat to be insured for the whole loan term.
- In 2025, 52.8% of homes in Latvia were insured, so almost every second one has no policy.
- The sum insured should cover rebuilding costs, and it pays to compare the excess, not just the price.
What flat insurance covers
A home policy usually has three parts. You can insure just one, but most people buy them together.
| Part | What it covers | Example |
|---|---|---|
| Property | Walls, floors, windows, doors, built-in finishes and utilities inside the flat | A burst pipe ruins the floor and walls |
| Contents | Furniture, appliances, clothes and other movable things | Theft or fire |
| Third-party liability | Damage you cause to others | Your washing machine floods the neighbour below |
When insurance is required
The law does not require a private owner to insure a flat. But if you buy with a mortgage, the bank will usually require the mortgaged flat to be insured for the whole loan term, with the bank named as beneficiary. It is one of the costs of buying to plan for before the loan agreement.
In an apartment building, the common property such as the roof and stairwell is sometimes insured by the building manager. Ask what exactly is covered and what is not, so you don't pay twice.
How much flat insurance costs
The price depends on the sum insured, the excess, the building's age, the floor and the risks you choose. A ground-floor flat or an old building can cost more.
Latvijas Banka data show that in 2025 the average property insurance payout was €1,242, and for natural-hazard damage to a home €1,552. That is more than a policy costs over many years.
How to choose the sum insured and excess
The sum insured should match what it would cost to restore the flat, not its market price. The market price also includes location and land, which a fire does not damage. If the sum is too low, the insurer may pay only part of the loss.
The excess is the amount you cover yourself in each claim. A higher excess lowers the price, but then the policy won't help with small damage.
- The sum insured covers repairs and restoring the finishes in your flat.
- The liability limit is enough to cover repairing a neighbour's flat.
- The policy covers water leaks, fire, storm and theft.
- You understand the excess and whether it applies per claim.
- Check the exclusions, such as a gradual leak or an unoccupied flat.
- Update the sum after a major renovation.
If something happens
Photograph the damage before you start fixing it, and tell the insurer as soon as you can. If a neighbour caused it, note their contact details and contact the building manager so they can write up a report.
If you rent the flat out, tell the insurer when you buy the policy. Terms for an owner who lives there and for a rented flat can differ, and your policy usually does not cover the tenant's belongings.
If you disagree with the insurer's decision, first complain to the insurer itself. As a consumer you have the right to clear information about the policy terms before you sign.
Common questions
How much does flat insurance cost per year?
It depends on the sum, the excess and the risks. Compare offers from several insurers on the same terms.
Is flat insurance compulsory?
The law does not require it, but banks usually require the flat to be insured for the whole loan term when they give a mortgage.
Does insurance cover flooding a neighbour?
Yes, if the policy includes third-party liability. Check its limit, as a neighbour's repairs can be expensive.
What sum insured should I choose?
One that covers restoring the flat after major damage. The market price is usually not the right figure.
Sources
- Gandrīz katrs otrais mājoklis Latvijā joprojām ir bez apdrošināšanas aizsardzības · LV portāls, Latvijas Banka, 2026
- Patērētājiem ir tiesības saņemt skaidru informāciju par apdrošināšanas polises nosacījumiem · LV portāls, 2024
This article is for information only and is not legal, financial or tax advice. It may contain mistakes or be out of date, so check it against official sources or with a specialist before you decide. m²cena accepts no liability for any loss or damage arising from the use of the information in this article.