Romania’s Govt Decides High Seismic Risk Homes To Be Insured After Consolidation

The Romanian Government decided in a meeting Wednesday that homeowners who live in blocks of flats with high seismic risk will not come under the law regarding mandatory home insurance against natural disasters until the respective blocks of flats are consolidated.

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Interior Minister Vasile Blaga said the Government also decided to restrict control on the insurance pool against disasters for certain insurers.

The proposition that high seismic risk homes should not come under the mandatory home insurance law was made by insurers who said they cannot bear the risk for buildings considered to have a high seismic risk, as they insure possible and not imminent disasters.

Insurers said the mandatory insurance law should not be applied for homes with high seismic risks until they are consolidated.

According to the Bucharest Prefects' Office, about 35,000 buildings might be destroyed or damaged if a 7-magnitude earthquake hits capital Bucharest. Over 5,000 buildings in the capital are included in the high seismic risk category.

Over the past 18 years only 14 blocks of flats were consolidated, of which 12 are located in Bucharest.

The mandatory home insurance law might be enforced as of July 1, 2010.

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