Fire remains at the top of the list in a ranking of the five risks that cause the most significant damage to homes overall. Electrical phenomena, which can damage various household items, take second place, while storm risk, which was highly prevalent in 2024, ranks third. The last two places are occupied by hail and explosion risks.
“The wildfires in the United States remind us of how vulnerable we are to fire. Unfortunately, we often realize too late how important a facultative home insurance policy is - it provides financial protection against the devastating effects of fires and offers the necessary comfort to help us overcome such moments,” said Alexandru Ciuncan, President & CEO of UNSAR.
“Only about 2 out of 10 homes in Romania are protected against the risks which can destroy them, despite the fact that approximately 19 house fires occur daily,” added Alina Bărbulescu, Property & Goods Insurance Specialist at UNSAR.
In Romania, facultative insurance policies can be purchased only for homes already protected by a mandatory PAD policy. Optional policies provide extended coverage, reaching the actual value of the building and/or possessions, and can cover damages caused by natural disasters as well as other risks, such as fires, explosions, storms, falling objects, flooding due to water or sewage system failures, HVAC issues, boiler malfunctions, and damages to electronic or household appliances.
Additionally, optional insurance can be customized by adding specific clauses tailored to the unique characteristics of each home and the individual needs of clients. For example, coverage can include damages caused to neighbors, photovoltaic panel malfunctions, or even solutions for emergencies - such as intervention by specialists in cases of water, gas, or heating system failures, power outages, roof damage, or issues with access systems or elements in the home.
By the end of September 2024, the total number of homes covered by a facultative insurance policy by insurers domiciled in Romania was 1,723,829, up by 6% y-o-y. Moneywise, GWP for the first 9 months of 2024 reached RON 458.2 million (9.3% up y-o-y), while paid claims amounted to RON 124.34 million (up by 25% y-o-y).
On the mandatory side, the total number of active contracts was 2.3 million, accounting for GWP worth RON 220.06 million. Claims paid by the mandatory catastrophe insurance system reached RON 5.54 million.
In addition, for class 8 – fire insurance, insurers operating on FOS/FOE have written GWP worth RON 139.54 million (7% up y-o-y) and paid claims amounting to RON 78.7 million, almost 10% more y-o-y.
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