Greek FinMin to Impose Compulsory Property Insurance

Greek FinMin to Impose Compulsory Property Insurance

The Finance Ministry founded a special lawmaking committee, which examines the issue of obligatory real-estate insurance in case of natural disasters (earthquake, floods etc.). If the proposal is adopted, it will lead to an additional burden for real-estate owners. Cost, based on current measures applied on the insurance market, is approximately €1 for every €1,000 of the insured value.

Therefore, the cost for a real-estate which will be insured for €100,000 is calculated at €100 annually. The real-estate owners will be ofcourse able to be insured for higher amounts, if they wish so, depending on the value of the real-estate. The model under-discussion refers to the creation of a fund, which will be managed by insurance companies and which will obligatory insure all real-estates, up to a set amount. The cost of insurance coverage will burden the owner of the real-estate, who will be obliged to present the relevant insurance contract for any transaction relating to the real-estate asset.  

Click here for the Greek article.

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