Romania: President passes law on home insurance against natural hazards

Romanian president Traian Basescu Tuesday promulgated the law obligating private individuals and legal entities to ensure their homes against natural disasters, which will be enforced 120 days after its publication in the Official Gazette.

Basescu signed the decree promulgating the law on the mandatory house insurance against earthquakes, landslides and floods, according to a press release the presidency issued Tuesday. Lawmakers adopted in October the draft law obligating private individuals and legal entities to ensure their homes against natural disasters.

The mandatory sum to be ensured, according to the normative draft, is of EUR 20,000 for each home built of reinforced concrete, metal or wood, or that has external walls of rocks, burnt bricks or any other material that has been subjected to thermal or chemical treatment, and of EUR10,000 for each home which has external walls made of brick or any other material which has not suffered any chemical treatment.People who did not ensure their houses prior to any disaster will not benefit from state or local authorities relief, the normative act said.

Damage claims will be paid from the risk fund managed, as stipulated by this law, by a company which provides insurance and reinsurance services.The draft law was adopted by the Senate and will be enacted 120 days after its publication in the Official Gazette.