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Largest Insurance Payout in Five Years: Half a Million Euros for a Home

A member company of the Romanian National Union of Insurance and Reinsurance Companies (UNSAR) paid out a claim of over 2.5 million lei (514,000 euros) last year under its optional home insurance policy, the largest amount recorded in the past five years, UNSAR announced.


This payout is twice as high as the one paid in 2022 and four times higher than the amount recorded in 2021.

According to the association's analysis, the sum was paid to cover the damage caused by a fire. "Fire is the risk that Romanians worry about most, and the level of claims is increasing alarmingly from year to year. Therefore, it is important to no longer postpone the decision to fully insure our homes, for our own good and that of our families," stated Alexandru Ciuncan, president and general director of UNSAR, in the quoted release.


According to the document, in Romania, the fire risk is covered by optional insurance policies issued for homes that are already protected by a mandatory PAD insurance.

Thus, optional policies offer an extended level of protection, at the real value of the building and/or the goods owned, and can cover a range of natural phenomena, as well as other types of risks such as: earthquakes, floods, landslides, fires, explosions, falling objects, floods caused by damage to water-sewerage, air conditioning, central heating systems, damage to electronic/household appliances, etc.


Optional Insurance Can Be Tailored to Specific Needs

An optional insurance policy can also be customized with special clauses, depending on the specific characteristics of each home and the individual needs of the clients. For example, even damage caused to neighbors can be covered.


Only 17% of Homes Are Optionally Insured

"Although only 17% of homes are also protected by an optional policy, insurance companies compensate over 73 claims on a daily basis based on these types of insurance alone. It is up to us whether we choose to go through less fortunate moments alone or with the support of risk management specialists," said Alina Bărbulescu, Property & Casualty Insurance Specialist at UNSAR.


About UNSAR

Founded in 1994, the Romanian National Union of Insurance and Reinsurance Companies (UNSAR) represents 21 profile companies, which hold a share of over 90% of the local insurance market.

UNSAR's activity aims to defend and represent the interests of insurers and reinsurers in Romania, to participate in the improvement of the legislative framework in the insurance field, to promote insurance activity in Romania and the sustainable development of the profile industry domestically and internationally.

Since 2007, the Union has been a full member of the Insurance Europe Federation of European Insurance and Reinsurance Companies. Data collected by the organization shows that every calendar day, UNSAR member insurers pay out 5.2 million euros in claims.



Source: Ziare.com

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