site.btaFewer than 10% of Bulgarians Insure Homes

Nina Koltchakova, Secretary General of the Association of Bulgarian Insurers (ABI), said in an interview with BTA that Bulgaria lags far behind its neighbours in the region in terms of home insurance. Fewer than 10% of homes in Bulgaria are insured and they are mostly mortgaged homes, she said.

Thunder and hail storms caused serious damage across the country earlier this week.

Koltchakova said countries in the region with an insurance culture similar to Bulgaria's have over 60% home insurance after being hit by disastrous floods for several years in a row. She cited ABI data showing that 75% of homes in Hungary are insured, 60% in Poland, 63% in Czechia, 66% in Slovenia, 25% in Croatia, 20% in Romania, 14% in Turkiye and 15% in Greece.

She said climate change may push up the level of insurance in Bulgaria in line with a trend observed worldwide. When people see on television devastating floods, landslides and hailstorms around the world in just one week, they realize that climate change is already a tangible threat to property and people's way of life everywhere. There is a growing awareness among the public that insurance is the only mechanism for financial recovery after a natural disaster, Koltchakova said. Also, insurance is the only way for farmers to protect their income against natural disasters.

Asked about average insurance costs, Koltchakova said the Bulgarian market offers a wide variety of home insurance products. Insurance premiums range between roughly BGN 50 and BGN 300-400 per year, depending on the sum insured/policy limit, the risks covered and the type of property, among others. When choosing a home insurance policy, it is very important for the client to pay attention to the risks covered or not covered. The main and almost only reason for refusal to pay a claim under a property insurance policy is that this particular risk is not covered by it or is an excluded risk.