As little as about three per cent of Moldova's houses insured; How much insurance costs, what risks it covers

The number of Moldovans opting to insure their homes stays low, even though insurance premiums are relatively small compared to the value of the house and potential damages. The calculations by the National Financial Market Commission (CNPF) show that, for an immovable property valued at 100,000 euros, the insurance premium might be around 2,000 lei, depending on the selected risks.

Presently, in Moldova, only a small percentage (2-3 per cent) of houses are insured, CNPF informs, highlighting that insurance does not eliminate risks, but provides financial protection in cases when unforeseen events strike.

Typically, the insurance rate represents about 0.1-0.4 per cent of the insured sum. Thus, for an immovable property valued at 100,000 euros, the insurance premium could be around 2,000 lei, depending on the selected risks.

Insurance premiums depend on the insured sum or the value of the property and the included risks. The deductible, or the fixed amount you bear in case of damage, is also taken into account. A larger deductible leads to a smaller premium. The premium’s value is also determined by security measures, meaning that the presence of alarm or fire systems can reduce the cost.

Insurance companies provide varied packages, but major risks covered generally include: fire, explosion, lightning strike; natural disasters: earthquake, flood (from natural sources or water network), storm, hail, landslides; damage caused by water from pipes/installations; illegal actions by third parties: burglary, robbery, vandalism; landslides.

In the case of citizens who have purchased a home through a mortgage loan, the bank requires a mandatory policy. This usually covers only the structure (the property) and is for the benefit of the bank, according to the law.

At the same time, citizens can opt for optional insurance, which offers the most comprehensive protection. This allows the owner to insure not only the walls, but also household goods, such as furniture, electronics, appliances and personal items. It also covers damage to neighbors in case of flooding or fire. Also, some packages include accident insurance for family members.