Karina ROSU: Mandatory insurance does not cover the most common risks of the households
The mandatory household insurance policy does not cover the most frequent risks to which the households in the Romanian urban environment are exposed to, according to Karina ROSU, General Manager, AON Romania.
"The most frequent risks are fires, floods and theft; risks that most of the times the mandatory household insurance (AOL) cannot cover", said Karina ROSU.
Although the damages caused by these risks do not exceed in value those caused by an earthquake, "their frequency is much higher", she says. Thus, the recommendation to clients is that after the entry into force of the AOL stipulations, they should opt for a combined package - mandatory and voluntary policy -, thus also benefiting of the protection of property, civil liability etc.
Regarding the insured sums of the households, "the most correct would be for them to be set depending on the value of the new reconstruction of the dwelling. However, most times, they are set at market value, meaning the one with which the house was bought, because people actually want to protect their investment", explains the CEO of AON Romania.
Neither is it recommended to insure the household at a rate far higher than the market one (you will receive compensation correspondent to the reconstruction value). Also, in the case of under-insurance, "profile companies could apply the proportionality rule for the partial damage, that is a proportion between the real value of the reconstruction of the house and the insured value, and in this case the compensation is reduced proportionally", Karina ROSU concludes.
Author: Oleg DORONCEANU
on 25.02.2010
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