Mandatory home insurance comes into force

Romanian homeowners have six months to insure their homes, as the law on mandatory home insurance has come into force. The law, which was adopted in November 2008, stipulates that all homeowners must insure their house for at least EUR 10,000 and no more than EUR 20,000. Premiums also should not exceed EUR 20.

The insurance policies will be issued by the country’s Insurance Pool Against Disaster (PAID), a joint stock insurance-reinsurance company. It estimates to sign about one million mandatory home insurance contracts over the next six months.

Simona Bazavan