Romanian senators OK mandatory insurance house bill after damages caused by floods

Individuals together with legal entities will be forced to close mandatory insurance contracts against natural disasters all constructions which serve as houses, located both in the urban and rural areas. The houses must be private property and must be registered at the fiscal authorities.

The sum which can be paid as insurance is the lei equivalent of 20,000 euros for and “A” type house and 10,000 euros for a “B” type house. The difference between the two categories of houses resides in the fact that an “A” type house is built with professional construction materials. A “B” type house is constructed of any type of materials which did not go through a chemical or thermal process.

For the houses or buildings which have several owners, a mandatory insurance contract will be closed with each of them. An insurance premium will be paid by each of the owners.

Source: NewsIn