The number of active policy of mandatory home insurance (PAD) grew by 6.13 percent, reaching to 1.691 million on January 31, 2017, compared with 1.593 million PAD policies year-on-year, the Insurance Pool against Natural Disasters (PAID) data show, the institution authorized to issue this type of insurance.
At end of last year, 1,703,047 PAD policies were active, compared to 1,590,954 at end-2015.
According to PAID, at end of this January, 75.1 percent of active policies at the national level were concluded in urban areas and 24.5 percent in rural areas and, depending on the dwelling type, 92.2 percent of PAD policies are targeting type A housing (building with strength structure of reinforced concrete, metal or wood or with exterior walls made of stone, burnt brick or any materials resulting from heat or chemical treatment) and 7.8 percent for housing type B (building with exterior walls of brick or any other material not subject to heat or chemical treatment).
By region, the most active policies are in Transylvania (20 percent of total), followed by Bucharest (19 percent) and Muntenia (18 percent) and at the opposite end are Maramures and Bucovina (3 percent of total policies each).
The rate for a PAD is EUR 20 for housing type A (EUR 20,000 is the maximum insured sum) and EUR 10 for housing type B (the insured amount is EUR 10,000).
The Insurance Pool against Natural Disasters (PAID) is an insurance-reinsurance undertaking, with private capital, formed by the association of insurance companies for the conclusion of compulsory home insurance. Under the law, PAID manages the compulsory home insurance system, covering three main risks specific to Romania: earthquake, flooding, landslide.
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