Czechs insure their property more than their lives, revealed SC&C survey

Every second Czech insures his or her life, but two-thirds of Czechs have an insurance policy to protect their household, and 55% also protect their real estate. However, according to an analysis by the Czech Association of Insurance Companies (ČAP), only about a third of the contracts have the right amount of insurance benefits.

According to a survey conducted by SC&C for ČAP, every Czech has at least one insurance policy. And, as other results showed, Czech households focus mainly on protecting their property.

Most of the time, they have home insurance, with 65 percent of the population having home insurance. Property insurance is the second most commonly purchased insurance product, with 55% of respondents having it.

Underinsurance is even higher than 50%

However, the ČAP analysis showed that homes are insured, but not enough. As many as two-thirds of the contracts do not have the correct amount of insurance benefits set.

“Detailed data from our members showed that the most common amount of underinsurance is between 20 percent and 49 percent. This is worrying. And even more worrying is that 15 percent of contracts have more than 50 percent underinsurance. In the event of such underinsurance, clients will, unfortunately, receive at most only half of the actual loss incurred,” warned Petr Jedlička, insurance analyst at ČAP.

One in two has insured their life

Life insurance, which is purchased by 52 percent of all Czechs, came in third place in the fictitious ranking. More than two-fifths of people also protect their health with accident insurance.

A loss of income due to an accident or illness can be a big problem for many households, as mentioned by ČAP spokesperson Veronika Pavlisová: “Especially today, when inflation is rising significantly, energy and consumer goods are becoming more expensive, and economists are warning of a fall in living standards for hundreds of thousands of people, it is important to know that no matter what the future brings, one is financially secure.”