Greek FinMin considers imposing compulsory property insurance

Posted by in Economy

Greek finance ministry considers to make property insurance against earthquake and floods obligatory. According to daily Kathimerini, the compulsory insurance of property against big natural disasters like earthquake and flood is being considered by the finance ministry as an attempt to forestall the possibility of a widespread economic damage from an unexpected event such as an earthquake or flood.

A special legislative committee has been already set up that  to investigate the issue.

The model under discussion refers to the creation of a fund managemed by insurance companies.

Basic level of insurance policy is being considered to be 100,000 euro. In such case, the insure cost would be 100-150 euro per year will be covered by the property owner.

Of course, owners will be able to insure their properties for higher amounts depending on the property value.

The insurance policy will be compulsory for every act that has to do with the property like sale, rent etc. Something similar to the Energy Certificate imposed 2 years ago. A certificate that costs 300-500 euro to property owners.

In general, the consideration is 1-1.5 euro per every 1,000 euro coverage.

In case the property is acquired via a mortgage, the insurance company pays firs the bank for the part of the loan that has not been repaid yet.

The logic of compulsory property insurance is based on the model of compulsory vehicle insurance.

The argument behind the property insurance is that the Greek state is unable to compensate victims when an unexpected event such as an earthquake occurs.

Properties with insurance policy against earthquake are no more than 15% across the country.

Odd enough – or not at all- one day before the Kathimerini report, a conference on earthquake risks revealed the estimated cost of an earthquake in Thessaloniki.

“200 dead, 20 billion euro material damages, should an earthquake of 6R hit Thessaloniki, the city with 900,000.” These risks estimations were done by a professor at Thessaloniki University.

Is it coincidence that also that PASOK leader Evangelos Venizelos is from Thessaloniki?

PS rumors that insurance policies will be compulsory against aliens abductions are not confirmed. We’re in grip of aliens anyway. Weird enough, they believe each Greek had a money printing machine at home.