Romanian Mandatory Home Insurance Policies To Be Sold Through Town Halls

A press release issued by insurance sector regulator CSA says PAID will sign collaboration protocols with local authorities such as city halls or homeowners’ associations, to sell their PAD mandatory home insurance policies directly. This move aims to extend the coverage of home insurance against natural disasters – earthquakes, landslides and floods.

„Using current data, we estimate that the number of insured homes, either through PAD mandatory policies or through voluntary insurance, is around 40% of the total number of buildings in Romania, including around 8% through PAD policies. This means that about 5 million homes are not insured,” CSA president Angela Toncescu says in the press release.

PAID’s collaboration with local authorities will make it easier to get insurance, especially for people living in rural areas, she adds.

Holders of voluntary policies are also required to be covered against the three types of natural disaster mentioned above, Toncescu warns.

PAID (the Pool of Insurance Against natural Disasters) is a joint stock insurance-reinsurance company that manages the risk fund meant for paying damages in case of natural disasters. Its 13 shareholders are: ABC Asigurari, Astra Asigurari, ARDAF, Carpatica Asig, Certasig, City Insurance, Credit Europe Asigurari, Euroins Romania, Generali, Grawe Romania, Groupama Romania, Platinum Asigurari and Uniqa Asigurari.

By July 4, PAID had issued more than 600,000 PAD policies.

Home insurance against natural disasters becomes mandatory on Friday.