You have already set aside money for the apartment that you want to buy? Well, apart from the price, there are some expenses that you have to think about. One of them will be the mandatory housing insurance. Fortunately, there are several financing options available. a> from which you can choose, including rates at the developer.
Let's get back to the mandatory housing insurance. In the context where the climate is changing and natural disasters are more and more frequent, not to mention wars, one of them taking place right on our border, is this insurance necessary? We think so. That is precisely why we answer the most important questions about it, in the following!
Are you obliged to insure your home?
Yes. The law on mandatory home insurance stipulates that each owner must have a PAD home insurance policy. This fact is regulated by law no. 260/2008. In the event that you refuse or omit to conclude this policy, your home will not be insured, and the special bodies will sanction you through fines ranging between 100 and 500 RON.
What are the risks covered by the compulsory insurance?
The PAD insurance policy will cover the risk of flooding, landslides, earthquakes or other damages caused by natural phenomena.
What is the cost of compulsory home insurance?
To determine the cost/price of the insurance you must take into account construction and finishes as follows:
- In the case of houses with a resistance structure built of metal, reinforced concrete, wood or with external walls made of stone, burnt brick or any other materials obtained after a chemical/thermal treatment, the cost of the policy will be 20 euros per year;
- In the case of houses with exterior walls made of unburnt brick or other materials that have not been subjected to chemical/thermal treatment, the cost will be 10 euros/year.
All insurers' offers are standard, so they present the same price and the same amount of insurance.
I already have home insurance, do I need to take out the mandatory insurance as well?
Yes, even if you have already concluded an optional insurance, it will be necessary to conclude the PAD policy as well. In addition, the legal provisions attest to the fact that you cannot conclude an optional insurance if you have not already concluded the mandatory insurance.
Optional insurance can cover all types of risks, from fire to theft, and each insurer will present its own offer and related benefits.
Who will pay the compensation?
If one of the risks mentioned above occurs, it will be necessary to contact the agent who sold you the insurance. The insurance company will prepare the claim file, which file will be sent to the Natural Disaster Insurance Pool (PAID). You will receive the compensation from this institution, within a maximum of five days after receiving the claim file.
For compensation, you must notify the insurance company about the damages produced in no more than 60 days from their occurrence.
What do you need to know if the house is taken on credit?
According to PAID, the compensation will be collected by the insured either directly in the account opened at the bank, or in cash by picking up from the bank cashier, based on the identity document. In order for the damage file to be completed, it will be necessary to submit a copy of the property's property documents, for example sale-purchase contract, the report on the reception of the works, the building permit, the heir's certificate and so on.
If the building is owned by several co-owners, the compensation is divided according to the shares held, by completing the compensation forms, individually by each co-owner. In the situation where the PAD policy was assigned in favor of the bank, in the case of loans with a real estate guarantee, the agreement of the banking institution may be necessary to obtain the compensation.
We still hope you don't need this insurance!