Romania: Only 25% of homes hold mandatory natural disaster insurance

A recent survey conducted by IRES for the National Union of Insurance and Reinsurance Companies in Romania (UNSAR) reveals a significant gap between interest in property protection and actual insurance coverage. While 68% of Romanians express interest or high interest in protecting their homes and belongings, only 25% of dwellings are covered by the mandatory natural disaster (PAD) insurance policy.

The research indicates that the lack of coverage is not due to ignorance of the law, as 83% of respondents are aware that they must insure their homes against earthquakes, floods, and landslides. However, only 55% are aware that failure to hold a PAD policy can result in fines. This 28-percentage-point gap suggests that while the obligation is known, the consequences of non-compliance are not widely understood.

Additionally, approximately 19% of homes have optional insurance, a figure that has been steadily increasing. Interest in home insurance is highest among individuals over the age of 35 and those living in rural areas. Regionally, the highest interest is noted in the South, Bucharest, and Dobrogea.