At the same time, two other milestones were achieved – over 30% of homes in urban areas are now protected by mandatory insurance, and there is no county in the country with a coverage rate below 10%.
The total number of active PAD policies at the end of July was 2,235,771, out of which 420,994 were issued for homes in Bucharest. Brasov, Constanta and Timis are the only three counties with the highest number of active PAD policies. Also, 1,308, 909 policies were issued for apartments, while 926,862 policies covered individual houses.
Although in comparison with other markets these figures might seem still modest, for the Romanian one they are a indication of progress. "For us, each homeowner insured against natural disasters is a small victory. We close July with a national coverage rate of 23% and the good news that 30% of homes in urban areas are now under financial protection. Equally important is the fact that there are no counties with a coverage rate below 10%," PAID announced in a message posted on a social media platform.
Recently, PAID announced in a press conference that the Romanian housing insurance market is prepared to provide quick compensation in the event of a major natural disaster. During the same event the Pool also announced the completion of the project for the full digitization of the claim notification, assessment, and compensation calculation process for homeowners affected by disasters.
PAD - the natural disaster insurance policy - is a mandatory insurance policy that covers losses caused by floods, earthquakes, or landslides to homes.
PAD policies cost RON130 (~ EUR 26) per year for Type A homes, with a maximum insured amount of RON 100,000 (EUR 20,000), while for Type B homes, the policy cost is of RON 50 (EUR 10), with an insured amount of RON 50,000 (EUR 10,000).
A Type A home is a structure with a reinforced concrete, metal, or wood frame, or with exterior walls made of stone, burnt brick, wood, or any other materials resulting from thermal and/or chemical treatment. A Type B home is a structure with exterior walls made of unburnt brick or any other materials not subjected to thermal and/or chemical treatment (e.g., adobe).
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