Overall, home insurance premiums increased by 19% compared to the same period last year, driven primarily by a rise in claims.
The average annual premium for fully comprehensive home insurance policies (covering both property and contents) for individual residential properties in Hungary increased by 19% to 64,800 HUF by the end of Q3 2024, while claims expenses remained stagnant. In Budapest, premiums averaged 62,100 HUF, whereas in rural areas, where properties tend to have larger floor areas, the average was 65,300 HUF, according to the MNB’s Q3 2024 Home Insurance Index.
Nationwide, the average insured value per square meter rose by 24% year-over-year to 486,000 HUF, with Budapest’s figure being 31% higher, at 637,000 HUF.
The Qualified Consumer-Friendly Home Insurance (MFO) policies offer significant cost and service advantages. Their average premium is 22% lower than standard market policies for insured residential properties, yet their claims expenses are 18% higher, indicating a better coverage quality. Combining cost efficiency with superior service, MFO products deliver 50% greater customer value compared to other market options.
In the first two quarters of this year, premium growth was restrained by the home insurance campaign in March. However, in Q3, premiums increased, meaning that insuring a property with a sum insured of 50 million HUF cost more than in the first half of the year. Within this period, premiums for consumer-friendly home insurance were 13,000 HUF lower compared to standard policies.
Out of the 3.1 million permanently occupied individual (non-condominium) home insurance policies, 2.5 million offer full coverage. Policies exclusively covering contents numbered 430,000, with an average annual premium of 25,400 HUF as of September. Additionally, there were over 195,000 policies for unoccupied properties, typically in rural areas.
Premium offers from different insurers can vary significantly from average rates. Another home insurance campaign is scheduled for next March, but customers whose insurance policies renew before then are advised to review their contracts. Key considerations include adjusting insured values, assessing covered and uncovered risks, and evaluating the insurance services provided. The Hungarian National Bank (MNB) supports consumer decision-making in the home insurance market with tools like the Qualified Consumer-Friendly Home Insurance (MFO) platform and the Financial Navigator consumer protection site on its website.
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