Even more striking is the financial impact: preliminary estimates put insured fire damages at CZK 2.9 billion for the first six months of 2025—147% higher than the CZK 1.2 billion reported a year earlier. “For the first half of this year alone, the estimated losses from fires already approach the full-year totals recorded between 2021 and 2024,” said Jaroslav Urban, actuary at the Czech Insurance Association. The average claim value has more than doubled, from CZK 477,000 last year to CZK 1.02 million in 2025, largely due to several major fires in industrial facilities, he added.
Despite the rising risk, a recent survey by the association shows that 78% of Czechs believe their home insurance coverage is set correctly. In reality, only half of policyholders update their insured sums frequently enough (at least once every three years). Regional differences are notable: homeowners in the Pilsen region are the most diligent, while in Karlovy Vary, one in ten has never updated their policy since signing it. This leaves them highly exposed, as outdated sums would not cover the cost of rebuilding in the event of a total loss.
On average, Czech insurers settle 350,000 property claims annually, paying out about CZK 15 billion. However, natural disasters—such as last year’s floods—can easily double this figure. Underinsurance remains a critical issue: the association estimates that 70% of clients are underinsured, with policies covering only around 60% of a property’s true value.
“Unfortunately, most clients remain underinsured. Eight out of ten are convinced their policies are set correctly, but when a claim arises, they discover the payout is insufficient to rebuild their homes,” explained Lenka Slabejová, Head of Non-Life Insurance at the Czech Insurance Association.
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