€16,000 in losses for a fire-damaged apartment

BTA: Risks of renovation work – €16,000 in losses for a fire-damaged apartment 

In spring, people begin to focus more actively on home renovations, during which various accidents can occur. Data compiled by the BTA Baltic Insurance Company AAS (hereinafter – BTA) shows that over the past three years, the majority of insurance claims paid out for renovations on private properties were for damages caused by fluid leaks. Meanwhile, the largest insurance claim paid out was for a fire-damaged apartment, amounting to 16,000 euros. Renovation work was being carried out in the home, and the owners were not living there; moreover, when the fire broke out, the owners learned about it from the evening news. 

BTA data shows that the average amount of property insurance payouts for damage to a home caused during renovation work has increased by 55% over the past three years. 

Bursting pipes – among the most common risks during home renovations 

Common mishaps that can damage multiple properties at once are related to fluid leaks – damaged pipes during renovations in apartment buildings result in extensive water leaks, which typically affect several apartments simultaneously. For example, in one case, BTA paid out an insurance claim of 9,000 euros for an incident during renovation work when utilities in an apartment were damaged, causing a water leak. This even damaged an apartment two floors below – the bathroom, kitchen, ceiling, partition walls, and kitchen cabinets. 

On the other hand, without understanding the building’s structure and the specifics of the work, you can seriously damage a neighbour’s property during drilling work. In one insurance claim filed with BTA, a hole was drilled through the floor slab with a hammer drill, creating a large hole in the ceiling of the apartment below and causing the plaster to fall off, while in another case, a hole was drilled in the ceiling of a neighbour’s apartment. Movable property is also frequently damaged – equipment rented for renovation work, personal technical equipment, furniture, household appliances, finishing materials, and other items. 

“Disaster almost always begins with a small mistake – an unchecked connection, utility lines damaged during repairs or moving household appliances without verifying whether it is safe to do so. Moreover, people usually only notice the problem when water is already flowing down the ceilings, walls, and floors. In claims, we see that the damage rarely stops there – because, while the water supply is shut off, the water also manages to damage the home’s electrical wiring, appliances, furniture, and other personal belongings,” emphasizes Ivo Danče, Director of the Claims Department at BTA Insurance. 

The largest claim in recent years for an accident during renovation work – 16,000 euros 

Over the past three years, BTA’s largest property insurance claim for an accident during renovation work amounted to 16,000 euros – in this case, a fire that broke out on the other side of the building damaged the apartment where renovations were underway, and the owners were not at home at the time, learning of the incident during the evening news broadcast. 

In another case, water leaked from a neighbour’s apartment, where renovation work was underway, for two days because the neighbours were not home, causing extensive damage to the apartment one floor below. Water poured from the ceiling and walls into the kitchen, later reaching the entryway, the adjacent room, and the bathroom, damaging not only the wall and ceiling finishes but also the flooring, cabinets, and other built-in fixtures, resulting in over 2,000 euros in damages. 

“These cases clearly demonstrate the extent of damage that can be caused by a leak or fire that is not addressed in a timely manner, even if it originates in a completely different part of the building. In such situations, complications are further compounded by the fact that the owners of the apartments where repairs are being carried out do not live on-site, so neighbours must always be notified of planned repairs and agree on how communication will take place if something happens. It is important to note that such extensive incidents most often require drying out the premises, comprehensive repairs, and new electrical wiring and furnishings, which can cost the owner significantly more,” says Ivo Danče. 

How to reduce risks during renovations? 

To minimize the risk of fire, water leaks, structural damage, and other accidents, BTA recommends carefully assessing the specifics of the planned work, the building’s structure, and the layout of utilities before starting renovation work. Before drilling, hammering, demolition, and other work involving walls, floors, or ceilings, it is especially important to ensure that pipes, electrical wiring, floor slabs, load-bearing walls, or other building structures are not damaged; and after any changes to the water supply system, check the tightness of the connections. 

In addition, before starting renovation work, it is important to verify the contractors’ competence and previous reviews, and after the work is completed – the quality of the work. Neighbours should also be informed of planned repairs in a timely manner, and you should be prepared to respond quickly in emergency situations. 

“Although repairs often seem easy to predict, you must take into account that relying on luck can mean additional expenses. Experience shows that mishaps during renovation work occur when we overestimate our ability to improve our home on our own, as well as in cases where contractors perform their work poorly or make accidental mistakes. In any of these scenarios, losses can amount to several thousand euros, which, if you do not have property insurance, must be covered out of your own pocket. Meanwhile, it is important for contractors to consider liability insurance to ensure their financial protection in the event of unintentional damage,” explains Ivo Danče.