It’s on fire! Last October, a fire broke out in one of the apartments in our building. The tenants’ five-year-old son had been playing with his father’s lighter. He played with it long enough for the crib to catch fire. When he realized something was wrong, he closed the door to his room, went into the living room, cuddled up next to his dad and wanted to watch cartoons.

The father smelled heavy smoke. By that time, the child’s bedroom was already in flames.

When he opened the door, smoke poured into the entire apartment — so thick that you could only breathe about half a meter above the ground. You couldn’t see anything.

The father poured six buckets of water over the burning crib and cabinet and managed to extinguish the fire. In the smoke-filled apartment, navigating only by touch, he grabbed his son and the dog, got them outside, and called the fire department. The firefighters were surprised he had managed to put the fire out at all.

An ambulance took the father and son to the hospital — both had inhaled so much smoke that they spent approximately four hours in a hyperbaric chamber.

Restoring the apartment

Now the apartment had to be cleaned and restored to its original condition.
And we certainly don’t mean just airing it out.

A specialized company had to handle the cleanup, as smoke and soot are toxic. Most of the clothing was saved, but it had to be washed three times — in a special cleaning solution, in vinegar, and finally in regular detergent. All electronics were destroyed by smoke and soot and had to be discarded.

A brand-new kitchen worth CZK 250,000 was saved — only the cooktop had to be replaced.

Walls, floors, furniture, the bathroom, the hallway, and even the building’s common areas up to the second floor had to be cleaned.

The total cost of cleaning and remediation reached CZK 550,000.

Trouble with the insurance companies

At first glance, it seemed resolved. But very quickly it became clear it wouldn’t be that simple.

Initially, it appeared that the tenants’ insurance policy did not actually cover tenant liability. Which meant the insurance company might not pay for the damage.

Intensive negotiations followed between:

• the tenants’ insurance company,
• the building’s insurance company,
• and the apartment owner’s insurance company.

After several rounds of explanations, documentation, and discussions, the situation was finally resolved. The insurers ultimately shared and covered the loss.

What can we learn from this?

If you are a tenant:

• Make sure your liability insurance truly covers tenant liability. Otherwise, the insurer may refuse to pay for damage to the apartment and its fixtures.
• You also need contents insurance. This covers your personal belongings that you brought into the apartment.

If you are a landlord:

• Insist that your tenant has properly structured liability insurance.
• It must cover damage to your property within the apartment (entrusted property). In some cases, this can also be addressed through your own policy.
• Have everything reviewed by a financial advisor before you are faced with a claim.

If you live in your own house:

• Your policy should reflect the current reconstruction cost of the property (contractor costs, VAT, materials, etc.).
• Don’t forget solar panels, heat pumps, or extensions.
• Review your policies at least once every three years — otherwise, you risk underinsurance.

The fire started within minutes. The damage was handled for months. And the entire financial burden could have fallen on the family.

Properly structured insurance is not a formality or “something that probably won’t happen.” It is the difference between dealing with an unpleasant situation — and facing a life-altering problem.

Contact your financial advisor and review your insurance coverage before it’s too late.

In the MyPlan client app, you can clearly see all the policies we arranged together. In the Documents section, you can upload additional property insurance policies using the “+” button and request a review.

P.S. Ask us for contact details of our independent claims adjusters as well. In a crisis, that support is invaluable.