New ABZ informational guide “3 Questions When Choosing Home Insurance” helps consumers make informed decisions
Natural disasters and extreme weather events are becoming more frequent, resulting in growing economic losses. According to Munich Re, global losses in 2024 amounted to USD 320 billion – an increase of 19.4% compared to 2023 – of which USD 140 billion were insured. The situation in Europe is similar: last year, natural disasters destroyed assets worth USD 31 billion, of which USD 14 billion were insured. This demonstrates that the protection gap remains significant, particularly in Southeast European countries – and Bulgaria is no exception.
Despite the country’s high vulnerability to natural disasters, which have been occurring more frequently and with increasing intensity in recent years, the level of insurance coverage on property remains alarmingly low. Only around 10% of homes in Bulgaria are insured. The problem is that when disasters strike, households and businesses bear the financial burden almost entirely themselves, often relying solely on limited and insufficient state aid. This not only strains public resources but also slows down recovery, deepens social inequality, and undermines long-term economic resilience.
In this context, ABI calls on citizens, businesses, and managers of public property to take the necessary steps to insure their assets as an important part of risk management and financial stability. In addition to natural disasters, the most common risks to property include water supply and sewage incidents, and electrical risks such as short circuits and power surges, according to ABI research among its members.
“Insurance remains the most effective mechanism for financial protection against losses caused by natural disasters and other risks, and it plays a key role in the resilience of the economy and society under conditions of climate uncertainty. That is why increasing insurance penetration in property insurance is a strategic priority for ABI. A key element of this effort is raising consumer awareness. Our new information material ‘3 Questions When Choosing Home Insurance’ is another step in this direction,” emphasized Nikolay Stanchev, Chairperson of ABI.
An informed choice of home insurance is the foundation of consumer satisfaction with the level of protection provided under a policy. ABI’s new material “3 Questions When Choosing Home Insurance” offers clear and practical guidance to help consumers navigate the process.
A more detailed overview of home insurance is provided in the Consumer Guide “Practical Tips: Home Insurance” and in a series of articles published on ABI’s website.
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