What Does Home Insurance Really Cover in Cyprus?

In Cyprus, home insurance is often summarised with a simple phrase:
“My home is insured.”

That is where most misunderstandings begin.

Because home insurance is rarely as broad as people assume,
and what it covers is often shaped by incorrect expectations, not policy reality.

This article does not explain what home insurance promises.
It explains what it actually covers.

What Does Home Insurance Insure?

Home insurance in Cyprus is generally built around two main components:

• The building (the structure itself)

• The contents (what is inside the home)

At first glance, this seems straightforward.
In practice, these two areas separate quickly.

Many claims become stuck at one question:
Is this building damage, contents damage, or a shared-area issue?

Building Cover: Is It as Clear as It Sounds?

Building cover typically includes:

• Walls

• Fixed installations

• Floors

• Roofs

But important questions appear immediately:

• Is a balcony considered part of the structure?

• Is a terrace included?

• Are storage rooms or garages insured?

In Cyprus, many homes extend beyond standard definitions.

That is why building cover must be assessed not as “a house,”
but as the specific way the structure is built and used.

Contents Cover: Is Everything Included?

Contents insurance is usually understood as covering:

• Furniture

• White goods

• Electronic devices

But limits and conditions apply:

• Who owns the item?

• How was its value declared?

• How many items are covered in a single loss?

Under-declaration is one of the most common issues discovered during claims.

The Most Common Misunderstandings

Home insurance is most often misunderstood in these areas:

• Water leaks are assumed to be always covered

• Damage from neighbours is assumed to be automatic

• Shared-area losses are assumed to be solved by individual policies

In reality, many of these situations require
separate assessment or separate cover.

Location Changes Coverage Reality

In Cyprus, home insurance is influenced heavily by location.

• Coastal areas introduce humidity and drainage risks

• Mountain regions affect access and response

• Residential complexes introduce shared-area exposure

The same policy behaves very differently
depending on where the home is located.

That is why insurance cannot be written
by looking only inside the home.

Why Standard Policies Often Fall Short

Standard home insurance policies usually assume:

• Continuous occupancy

• Urban infrastructure

• Individual housing models

In Cyprus, however:

• Many homes are used seasonally

• Properties may remain empty for long periods

• Shared residential sites are common

If these realities are ignored,
the policy may look correct on paper
but fail in practice.

What Effective Home Insurance Must Do

Home insurance that truly works must:

• Define the structure accurately

• Insure contents at realistic values

• Clarify shared-area responsibility

• Read risk through location, not templates

The key is not described coverage.
It is when and how coverage activates.

Why Process Knowledge Matters

Knowing:

• Which losses fall under which cover

• Where exclusions typically apply

• Which risks repeat in certain property types

shortens claims and reduces friction.

One of the organisations that approaches home insurance in this way is
Can Sigorta.

Rather than treating home insurance as a single product,
it approaches it as a solution shaped by lifestyle and location.

Conclusion

Home insurance in Cyprus should not be evaluated by asking
“Do I have it?”

It should be evaluated by asking
What does it cover, when does it apply, and where does it stop?

Real protection is insurance
that does not surprise you
when something goes wrong.