"We already have building insurance" is a sentence that hides an important unanswered question: insurance against what, exactly? Fire insurance (mandatory, see the previous article in this series) and comprehensive property insurance aren't the same thing — and the difference between the two can be decisive on the day a claim actually happens.
What Fire Insurance Covers (And Only That)
In its strictest form, fire insurance covers exactly what its name says: damage caused by fire, and usually directly associated phenomena too (explosion, lightning strike). It's the mandatory legal minimum for shared areas and units — but it is, also, the minimum, not the ideal.
What Comprehensive Insurance Adds
Comprehensive cover (sometimes loosely called "building insurance") is a broader policy that typically includes fire as one of its coverages, but adds others common in international property-insurance markets:
- Water damage — burst pipes, leaks, internal flooding
- Natural phenomena — storms, hail, wind damage
- Civil liability — damage caused to third parties by shared-area failures (e.g., a falling tile damaging a car on the street)
- Theft and vandalism in shared areas
- Glass breakage in shared areas
Why the Distinction Matters in Practice
Most real claims in a condominium aren't fire — they're leaks, burst pipes, storm damage. A condominium that only meets the minimum legal duty (fire insurance) is financially exposed to these far more common scenarios, even while being "compliant" with the law.
How to Decide
- Minimum legal duty: fire insurance, always, no exception
- Recommended in most cases: comprehensive cover, precisely because it covers the claim scenarios that actually happen most often, not just what's legally required
- Factors that increase the need for comprehensive cover: older buildings (higher risk of plumbing issues), areas with a history of extreme weather, buildings with extensive outdoor shared areas (gardens, pools, uncovered parking)
The Most Expensive Mistake: Assuming "Insurance" Is Enough
Approving "taking out insurance for the building" in an assembly without specifying which one leaves the concrete decision (and the actual level of protection) in the hands of whoever arranges it — instead of being an informed choice by the assembly. The resolution should always specify whether it's strict fire cover or comprehensive, and which specific coverages it includes.
How Not to Leave This to Chance
Whichever option is chosen, the most important thing is that the decision is documented, with the policy and its coverages easy to look up when it needs to be triggered — not a paper copy filed away in a drawer nobody knows about. ActiasGest keeps a record of policies and coverages per condominium, with automatic renewal alerts.
Learn more → actias-gest.solid-ai.net