Around Half Of Romanian Homeowners Will Have Mandatory Insurance By 2011 – Regulator

More than 75,000 policies have been signed since home insurance became mandatory on July 15, 2010. All homeowners who do not take out mandatory home insurance by January 15, 2011, will be fined by their local authority between 100 and 500 lei (EUR1=RON4.2737).

The law adopted in November 2008 requires homeowners to take out insurance policies and pay premiums ranging from EUR10 to EUR20, insuring homes for EUR10,000 to EUR20,000.

Toncescu estimates the number of mandatory policies will catch up with that of voluntary insurance policies by the end of the year, and half of all homeowners will be covered under the mandatory scheme by July 15, 2011.

Mandatory home insurance policies will be issued by PAID, a joint stock insurance-reinsurance company that will manage the risk fund meant for paying the damages in case of natural disasters.

The mandatory home insurance covers risks such as earthquake, floods and landslides.