During natural disasters, interest in property insurance usually increases, but despite this, a large part of the people in Bulgaria still remain without insurance protection for their property. The risk is often underestimated until there is an actual material loss. At the same time, in recent years a positive trend has been outlined – more and more people are choosing to insure their property, Kaloyan Manoilov, Chairman of the Property, Marine and Aviation Insurance and Catastrophic Risks Committee at ABZ, told Nova News. “The data from our latest survey show this change very clearly – in 2020, 16% of people said they had or had had property insurance, and this year their share already reaches 31% – almost a double increase. The trend is positive, but we are still far from the necessary levels of property insurance coverage".
Bulgaria is one of the countries in the EU with the lowest insurance penetration. When the number of people who insure themselves is small, it is inevitable that in moments of natural disasters the damages from them will be borne by the victims and their family budgets.
Kaloyan Manoilov pointed out that there is no universal approach to the question of whether property insurance should be mandatory. “In our opinion, the focus should be first and foremost on increasing people’s insurance culture, then on incentives for voluntary insurance, and finally on the issue of prevention. Only in this way would we have a sustainable result and an increase in insurance penetration”, said Kaloyan Manoilov.
Insurance companies are reporting an increase both in the number of claims filed after cases of extreme weather and in their size. One factor for the increased amounts is, on the one hand, the increased values of property, and on the other – the increased costs of restoration after damage. People do not insure themselves mainly for two reasons – they believe that nothing will happen to them and that the events are far away from them. The second reason is the expectation that even if something happens, the state will help. However, state aid in disasters is extremely insufficient compared to the actual amount of damage. “In every natural disaster, the damages are of serious proportions – take the value of an apartment or a house, the furniture inside, and you will see how insufficient the amount allocated as state aid is”, noted Kaloyan Manoilov.
He advises people who do not have insurance to turn to an insurance consultant and discuss what kind of protection they need and to request an appropriate offer. When concluding a policy, attention should be paid to exactly what is being insured. “A common omission is that people insure mainly real estate – houses and apartments, but without the movable property in them such as furniture and appliances”, explained Manoilov. This can lead to insufficient compensation, because the insurer will only pay for the damage to the building, but not for the household goods, and the value of the movable property can be significant.
When an event occurs, the insured must contact the insurer, who will give instructions for action. “If the situation allows, we preserve the property so that it is not further damaged", said Kaloyan Manoilov. He explained that a large part of the insurance companies have already extended the deadlines for filing claims after the recent downpours and hailstorms in Bulgaria.
“Climate change is here and it puts the focus on the need for adequate insurance to protect against such natural disasters”, commented Kaloyan Manoilov.
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