Apartments to be insured compulsorily in amount of AZN 15-20 000 in Azerbaijan

Apartments to be insured compulsorily in amount of AZN 15-20 000 in Azerbaijan
# 21 April 2011 12:07 (UTC +04:00)
According to project, this insurance purposed to compensate for damages in property.

According to draft law, the insurance of buildings belonging to legal and individual persons, residential and non-residential areas, residential houses and buildings, apartments, including state property which the relevant execution powers defined their list will be compulsory. In general, persons having any real estates will have to insure them.

Insurance accidents during the compulsory insurance of real estate almost do not differ from simple insurance accidents.

Insurance sum of real estate on residential hou8ses and apartments in Baku makes AZN 25,000, franchise – AZN 250, in Ganja, Sumgayit, Nakhchevan – insurance sum – AZN 20,000, franchise – AZN 200 and other residential areas – insurance sum – AZN 15,000 and franchise – AZN 150.

Buildings are insured in accordance to the cost of the same buildings. In non-residential areas, the insurance sum is determined according to average market price of the same buildings in the same areas. According to project, the payment for damage not depending on the volume must not exceed the insurance sum in the law.

Insurance premiums related to compulsory insurance of real estate is determined by the application of relevant tariffs defined by insurance supervisory agency, to insurance sum.

Remind that, property insurance is one of the cheapest insurance types – according to voluntary insurance tariffs of insurers, the insurance premium for insurance of property from all risks makes approximately 0.1% of its value.

Note that, the persons not inuring the property will be deprived of large part of compensation to be given by the state inn the future. According to document, if the owner does not insure property, if the government decides to compensate for damages, his/her compensation will not be over 20% of value of damage.