Romanians Who Failed To Insure Homes By Jan 15 Risk Fines

Romanian homeowners who did not insure their homes by January 15, 2011, either through mandatory or voluntary insurance policies, may be fined 100 lei (EUR1=RON4.1869) to RON500 by local authorities, Pool of Insurance against Natural Disasters (PAID) general manager Marius Bulugea said Tuesday.

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The Interior Ministry said in December last year that homeowners have until July 15, 2011 to get mandatory home insurance, said Bulugea and stressed the ministry's announcement has no legal grounds and cannot amend the law on mandatory home insurance, which has taken effect.

Last year, the Interior Ministry said Romanians must insure their homes within one year after the first mandatory home insurance policies were issued, namely July 15, 2010.

In the 15 July-29 September, 2010 interval, the number of mandatory home insurance policies issued per day stood at 2,000, said PAID. By the end of the year, the number of underwritten premiums continued to increase to a peak of 14,000 policies per day in November.

The number of mandatory home insurance policies decreased to about 400 per day in January 2011, following the announcement made by the ministry, said Bulugea.

Under the law, mandatory home insurance range from EUR10 to EUR20. The insured value will not exceed EUR20,000, and the minimum level will be set at EUR10,000.

The first mandatory home insurance policies were issued in July 2010 and cover damages caused by earthquakes, floods and landslides.

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