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Home insurance to become compulsory for Romanians in 2007

Miercuri, 12 aprilie 2006, 0:00

Romanians will have to insure their homes starting next year, according to a governmental decision on Wednesday. Each family will have to pay an annual 20 euro to insure their households against floods, earthquakes and landslides.

The government announced the houses that have been built without proper authorization would not benefit of insurances. It also said low-income Romanians will receive subsidies to cover the price but that people who would not comply with the decision will suffer sanctions.

The Government also decided to establish a re-insurance company to tackle disasters, an institution due to supervise the whole project.

The decision comes as Danube floods have hit southern Romania since earlier this week and after devastating floods across the country last year.

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