Home insurance for natural disasters gets mandatory

The Finance Ministry is examining the compulsory insurance of buildings for natural disasters such as earthquakes and floods and has already set up a committe to lay the groundwork for legislation.

If the proposal is adopted, it will lead to yet another financial burden on property owners.

Premium rates currently stand at about 1 euro per 1,000 euros of insured value, meaning that a house worth 100,000 euros (in terms of its so-called «objective» value, used for tax purposes), will set owners back 100 euros a year.

The model discussed provides for the creation of a fund administered by insurance companies.