To protect oneself from significant expenses in the event of any incident related to real estate, it is advisable to insure not only one’s private property — house or apartment — but also the common property of the building.
“Insurance of common property costs about three times less than insurance for individual real estate, but it can significantly help if something unforeseen happens that affects the entire residential building — whether it’s a natural disaster, fire, or damage caused by third parties. It’s not just financial protection, but also a clear action plan in a crisis situation,” said board member of Civinity Mājas Diana Friedenberga.
“Such insurance covers not only stairwells and other common areas but also balconies, which most people don’t even think about. The costs are indeed small compared to what is provided. Nowadays, there are often situations where the management company offers to repair the roof or facade, but the meeting of apartment owners does not support it. As a result, an emergency situation may arise, and in such cases, insurance of common property can help,” Friedenberga explained.
As an example, she cites the aftermath of the 2024 storm in Jūrmala, when houses quickly received compensation for repairs: “Facades and roofs were damaged. One could say that compared to the investments in insurance, the owners received compensation many times greater.”
After the tragic gas explosion in Riga on Bauskas Street, the community also raised the question of who pays for the restoration of the damaged building and how residents can protect themselves from serious financial losses. The municipality continues to assist affected residents; however, one of the key issues remains the restoration of destroyed apartments, roofs, and load-bearing structures, as well as the possibilities of insurance in such situations.
Experts from the Association of Managers and Service Providers of Residential Buildings in Latvia also emphasize that insurance is often the only way to avoid lengthy and complex legal processes, and therefore it can become an important safety mechanism.
If an apartment is insured, the owner is at least partially protected from losses, for example, if it becomes impossible to live in the dwelling due to damages. However, it is important to understand that apartment insurance usually only covers the specific property, while the common parts of the building must be insured separately by the co-owners’ decision.
According to Friedenberga, insurance of common property is recommended for both new homes and old buildings that have not undergone renovation and are in high-risk areas.
In Latvia, insurance of common property in residential buildings — structures, roofs, and common areas — is not currently mandated by law as compulsory for every building. However, Civinity Mājas would support the introduction of such changes in regulatory legislation. Meanwhile, according to the Apartment Ownership Law, owners are obliged to take care of the maintenance of the building, and insurance of common property is the most recommended way to protect against unforeseen expenses.
Particular attention should be paid to the safety and protection of common property. In everyday life, various premises and elements of common infrastructure are used in apartment buildings — stairwells, roofs, attics, basements, and adjacent territories. These elements are often subject to wear and tear, as well as damage by third parties.
“It is important to understand that if an apartment owner insures their dwelling along with the ideal shares of common property, it does not automatically mean that the entire common property of the building is insured. Insurance of common property covers a much wider range of risks and applies to the common structures and infrastructure of the building. In such cases, insurance can cover not only damage from natural disasters but also the consequences of unlawful actions by third parties — for example, damaged entrance doors, vandalized stairwells, or damages to the adjacent territory, including playgrounds, fences, and other infrastructure elements,” said senior lawyer of Civinity Mājas Armands Logins.
Although in cases of damage to common property, the police are usually informed and all possible actions are taken to identify the guilty parties and recover damages, in practice, it is not always possible to identify the culprits or fully recover losses. Therefore, insurance of common property serves as an additional protection mechanism — it can help cover losses not only due to natural disasters, damage to engineering networks, roofs, or facades, but also in situations where common property has been harmed by vandals.
