The fire in the Ząbki apartment building was a traumatic experience for many victims, and a turning point for the insurance market that highlighted the scale of the underinsurance problem. The tragedy of families who lost their lives brought attention to the phenomenon of underinsurance sums being underestimated relative to the actual costs of restoring property to its pre-loss condition. For years, this problem remained overshadowed by stable prices, but amidst high inflation and the sharp rise in the costs of construction materials and labor, its consequences proved particularly severe.
The Financial Ombudsman has officially announced that it is monitoring the situation of injured parties and the practices employed by insurance companies and banks. The Ombudsman's Office is receiving a growing number of complaints, including reports of insured amounts failing to meet actual customer needs and problems with providing benefits sufficient to effectively replace damaged property. The Ombudsman reiterates that the purpose of an insurance contract should be to ensure genuine protection of the consumer's interests, not merely to formally meet credit requirements.
One mechanism contributing to underinsurance is the widespread model of selling insurance policies "on credit." In many cases, the insured amount only covers the amount owed to the bank, not the full replacement value of the property. In the event of a total loss, this means that the policy payment – due to the assignment – primarily serves as security for the bank. If this amount does not cover the full value of the property, the owner may be left without sufficient funds to purchase or rebuild a new home after the loan is repaid.
In this context, the provisions of the EU IDD and national regulations regarding customer needs assessment are crucial. They oblige distributors to thoroughly identify customer requirements and offer products tailored to their circumstances. Although these regulations do not constitute the basis for separate supervisory proceedings regarding fires themselves, they do establish standards intended to limit the sale of policies that are inadequate to actual needs.
Another source of disputes is the difference between the replacement (new) value and the actual value. Some claimants point out that their compensation is reduced by the degree of technical wear and tear of the building (depreciation). At current market prices, this makes the payments insufficient to carry out a full renovation. The Financial Ombudsman emphasizes that insurance should allow for a realistic restoration to the pre-loss condition, provided the client opts for the option without depreciation deductions.
The events in Ząbki have sparked a significant public debate about the quality of insurance coverage in Poland. For consumers, one fundamental conclusion emerges: home insurance policies cannot be treated as a document "to be kept in the drawer." Failure to regularly update the insurance sum (indexation), abandoning the replacement option, or limiting coverage solely to the loan amount translates into transferring risk to the property owner, the consequences of which can be financially devastating.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of February 11, 2026.
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