RUSSIA: new law on housing insurance for emergency situations may help significantly reduce recovery costs

On August 4, 2019, the law on housing insurance for emergency situations came into force, according to which regional authorities can develop their own insurance programs, ASN reports. Under it, homeowners may get coverage not only for natural risks, but also for manmade or technological risks as fire, gas explosion etc.

Regions will independently determine relevant insurance risks, conditions and rules for selecting insurance companies, as well as the procedure for premium payment. This insurance is voluntary and is subsidized from the federal budget.

According to the President of ARIA (All-Russian Insurance Association) Igor YURGENS, this insurance will help significantly reduce the cost of emergency response, as well as make the cost of insurance itself more affordable for citizens (an average voluntary home insurance policy costs around RUB 7000 (~EUR 95) and insurance under a regional program will cost about RUB 2400 (~EUR 33) per year).

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