What home insurance covers
According to FINE Finnish Financial Ombudsman Bureau, a comprehensive home insurance covers sudden and unforeseen damage. A narrower policy covers only the damage events named in the terms. The extent of compensation therefore always depends on what has been chosen in the contract.
A person living in an apartment block usually insures only their personal property with home insurance, because the housing company insures the building. A person living in a detached house insures, in addition to personal property, the residential building and other buildings. After a fire, the insurance may also cover temporary accommodation costs.
Home insurance often includes liability insurance, which compensates damage caused to another person when the insured is legally liable for it, and legal expenses insurance, which covers the cost of legal assistance in a civil, criminal or application matter.
It is worth checking the contents of your policy in the policy document and terms before a loss occurs. Look in particular at the sum insured, the excess, the item-specific maximum compensation limits and whether liability and legal expenses insurance are included in the contract.
Why the compensation may be smaller
Every insurance policy has limitation terms that exclude certain causes of damage from compensation. In addition, policies contain safety regulations, and neglecting them can reduce the compensation. Depreciation is applied to some items, and the age and condition of the damaged property affect the amount of compensation.
Underinsurance means that property is insured for less than its actual value. In that case the compensation may fall short of the amount of the damage. Valuable items, such as art, may require a separate insurance policy, because home insurance often compensates a single item only up to a certain amount in euros.
- The deductible is subtracted from the compensation.
- Age deduction reduces the compensation for old items.
- Neglecting protection instructions may reduce the compensation.
- Too low an insured amount leads to underinsurance.
How to claim compensation
Report the damage to the insurer as soon as possible and prevent it from spreading, for example by shutting off the water in the case of a leak. Take photos of the damage and keep the damaged items, receipts and other evidence until the company has handled the claim.
Under the Insurance Contracts Act, compensation must be claimed within one year of the claimant learning of the possibility of receiving compensation, and at the latest within ten years of the insured event. So do not wait, even if the damage seems small.
If part of the renovation or repair costs remain payable by you, the deductible portion of the insurance can qualify for the household expenses deduction when the other conditions for the deduction are met. No deduction is available for the portion paid by the insurance company.
- Report the damage immediately and prevent it from spreading.
- Photograph the damage and keep the damaged items.
- Collect receipts, purchase documents and repair quotes.
- Ask for the decision in writing and read the reasoning.
If you disagree with the decision
First ask the insurance company for a written justification and a new review. Many companies have their own internal rectification procedure, which is often the fastest route to a resolution.
Insurance matters keep dispute resolution busy. FINE received about 9 300 contacts in 2025, and 65 % of them concerned insurance. Many matters are resolved already at the advice stage, once the customer learns which term the decision is based on and how it is interpreted.
If you still disagree, contact FINE. FINE's services are free of charge for customers. Telephone advice is available on 09 6850 120, and you can also submit a contact request using the online form. Advisory matters are often resolved during the call, but dispute cases take on average 4–7 months to process at the office and 6–9 months at the boards.
A settlement recommendation does not bind the insurer, but according to FINE, companies followed the recommendations in about 94 % of cases in 2025. A total of 1 012 new disputes arrived in 2025, 23 % more than the year before. The final step is a claim in the district court.
Appeal periods by insurance type
The appeal period depends on the insurance, so check it in the compensation decision. According to FINE, the deadlines are as follows:
Note that in compensation matters concerning motor liability insurance and statutory accident insurance, appeals follow a different route than in voluntary insurance. The appeal instructions attached to the decision tell you where and within what time to appeal.
- Voluntary insurance, such as home, car and travel insurance: usually three years from receiving the written decision
- Motor insurance: one year from the decision
- Statutory accident insurance: 30 days from receiving the decision
Useful services
FINE's decision database lets you search earlier resolution recommendations in similar cases, which helps you assess your own situation. Insurance Radar gathers time limits, sources of help and current statistics on insurance matters. It does not sell or recommend insurance.
Frequently asked questions
How long do I have to claim compensation from home insurance?
Under the Insurance Contracts Act, compensation must be claimed within one year of you learning of the possibility of receiving compensation, and at the latest within ten years of the damage.
How much does FINE's service cost?
Nothing. FINE's advice and handling of disputes are free of charge for customers.
How long can you appeal a compensation decision?
For voluntary insurance the time limit is usually three years, for motor liability insurance one year and for statutory accident insurance 30 days from receiving the decision.
Calculate it yourself
- Deductible calculator: is a higher deductible worth it? · free
- Entrepreneur's mandatory insurance calculator 2026 · free
Ready-made tools
- Insurance comparison and checklist · All your insurances in one place, offer comparison and annual cost
- Complaint and compensation claim templates · Five ready-made letters: flight delay, lost luggage, faulty product, service error and insurance decision
Sources
- FINE: Home insurance
- FINE: Frequently asked questions – FINE and financial services
- FINE: Slip-and-fall injury – who pays and how to claim compensation
- FINE: Scams and insurance disputes increased contacts in 2025 (20.2.2026)
- FINE: Decision database
- Finnish Tax Administration: Conditions for the household expense deduction
The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.