Property insurance (pojištění nemovitosti)
Insurance of the building itself, whether a house or a flat unit, against natural and other perils such as fire, escaping water, windstorm and flood. With a mortgage it is compulsory for the whole repayment period: the bank wants a sum insured that matches the value of the building and the benefit assigned in its favour. The contents of the flat are not covered; for those you need household insurance (pojištění domácnosti).
Example
A buyer with a CZK 4,000,000 mortgage on a flat (5.00 %, payment CZK 23,384) insures the unit for a sum based on reinstatement costs and assigns the policy to the bank. Confirmation goes in before drawdown. In the real monthly budget the premium sits on top of the payment. It goes into the APRC (RPSN) when the insurance is a condition of the loan and the bank knows its cost (§ 133 of Act No. 257/2016 Coll.); otherwise the bank lists it in the pre-contract information as a cost outside the APRC.
In practice
In a building with an owners' association (SVJ, společenství vlastníků jednotek), the association usually insures the building. Banks differ on whether its policy plus a confirmation is enough or whether they want separate cover for your unit. For a new build or a family house, arrange insurance from handover or from the start of construction. Insuring only the household contents does not meet the bank's condition, though borrowers regularly assume it does.
How it differs
Household insurance covers the movable things inside; property insurance covers the building itself. Risk life insurance protects the borrower (death, disability), not the property, and banks require it only sometimes, while property insurance is always required. Building and household cover can be combined in a single contract.
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