Romania Mandates Home Insurance

April 14, 2006

Romania will introduce a mandatory insurance policy for all home owners, according to a government official in Bucharest.

Interior Minister Vasile Blaga said the insurance would cost about 20 euros (US$24) per year, with all Romanians required to buy the policies starting next year.

Plans call for all insurance companies registered in Romania to pool together to establish a joint fund to pay for damages, Blaga said. Draft legislation will be submitted to parliament in the coming months, he added.

Romania struggled with massive flood devastation last year which left 74 people dead and caused more than euro1.5 billion (US$1.8 billion) worth of damage to property.

Parts of the country are also in an active earthquake zone, including the capital, Bucharest.

There are more than 30 medium-sized earthquakes a year in the Vrancea region.

In March 1997, a 7.6 magnitude earthquake β€”the country’s deadliest β€” killed more than 1,000 people in Bucharest and in eastern Romania.

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