Earthquakes, how is compensation paid when you have two insurance policies? Draft/ Are they covered with a force of over 5 points? With the sale of the property, the policy is transferred
Individuals who have voluntarily insured their homes will not be "escaped" from mandatory earthquake property insurance.
This category also includes all those citizens who have insured their homes for the purpose of mortgage loans, where in this case, the insurance only covers the amount of the loan received from commercial banks.
Referring to the new draft law of the Ministry of Finance, submitted for public consultation, in the case where an individual appears with two insurance policies, there is a specificity in their compensation if they face material damage caused by earthquakes.
According to point 6 of Article 14 of the draft law, "in the case where a person is insured both under a mandatory contract and under a voluntary insurance contract, the payment of compensation shall be made under the terms of the mandatory insurance. For the insured amount exceeding the value of the mandatory insurance contract, the payment shall be made under the voluntary insurance contract."
The draft also clarifies what happens when an individual sells the property they have insured.
According to Article 9, "In the event of a change in the owner or possessor of the insured dwelling, the compulsory earthquake insurance contract shall be transferred to the new owner or possessor."
But the new owner, in this situation, is obliged to inform the Earthquake Fund of the change of ownership within 15 calendar days.
Compulsory earthquake insurance of dwellings applies to real estate such as dwellings or sections located within dwellings that are used as units, offices or for other similar purposes.
But it does not apply to buildings made of clay/adobe, reed fiber or similar structures, as well as buildings with mobile or temporary placement.
Insurance policies cover earthquake events, which mean an earthquake with a magnitude of 5 or higher on the Richter scale that has occurred in Albania or in adjacent regions and has caused damage to the country. The obligation to conclude an earthquake insurance contract is also imposed on social housing entities for rent, housing in the process of legalization, as well as local self-government units, which finance the insurance premium from their budget. The state budget finances the mandatory earthquake insurance premium for social groups in need
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