What you’ll learn in this article

• The difference between property insurance and home contents insurance.

• Who usually pays for each type of insurance.

• How to set the obligations in the rental agreement.

• The risks of not having insurance.

Property insurance vs. home contents insurance

• Property insurance: covers damage to the building itself (walls, floors, windows). This is almost always arranged and paid for by the property owner (landlord).

• Home contents insurance: covers damage to the apartment’s furnishings, appliances, furniture, and other movable items. This is usually the tenant’s responsibility if they want to protect their belongings.

Mandatory vs. voluntary insurance

Czech law does not require insurance for rental apartments. It is therefore up to the contractual arrangement:

• Landlords usually have property insurance as a standard (it’s in their own interest).

• Tenants should arrange home contents insurance and ideally liability insurance to cover damage caused to the landlord or neighbours (e.g., water leaks).

How to arrange it in the rental agreement

A well-drafted rental agreement should clearly state:

• who pays for the apartment’s insurance,

• whether the tenant is required to prove that insurance has been arranged,

• what happens if insurance is not arranged and damage occurs.

Risks if insurance is missing

• For landlords: the risk of unreimbursed repair costs if the property is not insured.

• For tenants: even a minor accident (overwatering a plant and damaging the floor) can cost tens of thousands of crowns.

Lawyer’s advice

💡 Sort out insurance at the signing stage – avoid unpleasant disputes later.
💡 Require tenants to have liability insurance – it protects both sides.
💡 Don’t just assume the other party has insurance – verify it.