GENERALI Asigurari: The decrease of the houses prices does not affect the value of the sum insured
The price fluctuation of properties on the Romanian profile market from the previous year did not significantly affect the amount of dwellings' sums insured, considering that they are established on the basis of the new reconstruction of the house, according to Razvan POPESCU, Head of General Insurance Divison, GENERALI Asigurari.
Thus, while prices of apartments in Bucharest and in the country have reached in the present the level of the ones from the year 2007, "household sums insured fell only 10% and only because of cheaper construction materials and labor force", the quoted official said. He also noted that the highest prices for household insurance were in 2008, when the price of apartments had exploded and implicitly had led to the increase of the price of construction materials and labor force.
Regarding the insurance premium (quota share of the insured sum, between 0.05% - 0.20%, depending on the risks covered), it is calculated according to the particularities of each insured house and must take into account the value of the new reconstruction of the property insured, for the claims are made according to this.
So, those who have bought household insurance in the period when prices were very high will not be affected, because "compensation of the claims is done considering the value of the reconstruction of the damaged property and does not take into account the fluctuation of prices of buildings", Razvan POPESCU explains. Also, if house prices rise again, the insured sum must be adapted to the value of the new reconstruction of the property/house, which increases in direct proportion.
At GENERALI Asigurari, this category of products is available in 5 variants, which differ only by the nature of risks covered. Thus, taking as example a 2 room apartment in Bucharest, with an insured sum of EUR 70,000, depending on the risks insured, the insurance premium varies from EUR 35 (covers basic risks: fire, lightning, explosion, aircrafts), up to EUR 140 (the broadest range of risks, no franchise and no maximum limit of compensation for the risks of theft/robbery and damage to the water installations).
In the first 9 months of last year, the insurer recorded an increase of 30% on the segment of voluntary household insurance, totaling gross written premiums worth RON 32.3 million.
Author: Oleg DORONCEANU
on 25.02.2010
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