Home LifeStyle Home insurance – what to look out for when closing your policy

Home insurance – what to look out for when closing your policy


Home insurance is an investment in order to guarantee the comfort of home and family, being available in two forms – compulsory PAD insurance and optional insurance. One does not exclude the other, since, as the name suggests, compulsory pad insurance is required by law, but it does not cover as much damage as an optional home insurance would cover.

Romania is the European country with the fewest insured homes, as a percentage of the total households (only 19%, ie about 1.7 million), given that disaster insurance is mandatory by law and full optional insurance is practically mandatory for all those who have bank-financed housing (ie almost all who bought a house after 2004).

In the context in which only 1 in 5 homes is protected by a compulsory PAD insurance, 83% of Romanians say they would agree with a possible introduction of its deductibility from local taxes and fees.

The compulsory insurance policy (PAD) insures 3 catastrophic risks, earthquake, floods and landslides up to the limit of 20,000 euros, respectively 10,000 euros, depending on the type of construction, regardless of whether the value of the construction is higher, while an optional insurance it also covers risks such as fire, explosion, storm, storm, theft or vandalism – at insured amounts that correspond to the real value of the home. It is important to note that special policies may also be attached to optional policies, such as ensuring the interior of the building, electrical / electronic appliances, disposable property, but also civil liability to third parties (for example, to neighbors).

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According to an opinion poll conducted by UNSAR together with IRES, in 2020, fire remains the most frequently mentioned danger by Romanians when it comes to the risks that can affect housing (56%). The top 5 risks that Romanians fear are followed by storms and storms, earthquakes, theft and floods.

Secure your home HERE.


Policy fees are largely determined by the insurer’s risk of filing a claim; they assess this risk based on the previous history of claims associated with the home, neighborhood, and condition of the home.

The most common housing in Romania is the type A, but in rural areas, there are still type B housing. For both types of housing, the cost of the policy for compulsory housing is as follows:

  • For type A homes, the cost of the PAD policy – 20 EUR / year

  • For type B homes, the cost of the PAD policy – 10 EUR / year

Steps to follow before securing your home:

1. Determine the major risks to which your home is subject: area with high seismic risk or risk of floods or other natural disasters, predisposition to floods or other damage or if you keep valuables in the house and consider that you can fall prey to thieves.

2. Choose a reliable company. Check the websites of insurance companies and choose the companies that inspire your trust, with international portfolios and many years of experience in the market.

3. Don’t rush, choose the right optional insurance package. Most insurance companies come with 3-4 types of optional insurance, depending on the number and complexity of the disasters they insure, with different prices.

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