Nina Kolchakova, Secretary General of the Association of Bulgarian Insurers (ABZ), emphasized in an interview for the Municipal Radio Veliko Tarnovo that many people in Bulgaria still fail to realize the necessity and benefits of property insurance, even though it is the only way to secure financial protection for their assets. She drew attention to the alarmingly low share of insured homes in Bulgaria – the lowest in Europe – even compared to neighboring countries such as Romania, Turkey, Greece, and Serbia.
Lack of protection is a risk for society as a whole
Kolchakova explained that the absence of property insurance is not only a problem for individual owners but creates vulnerability for society as a whole. “In the very essence of the insurance business lies social solidarity – in difficult moments, insurers are the ones who bear the cost of recovery. But this is only possible if people have the necessary insurance coverage,” she said.
What does property insurance cover?
Many people mistakenly believe that damages from hail are not covered. In fact, every household property policy includes basic coverage for “Fire and natural disasters”, where hail is explicitly listed as a risk. Additional risks – such as earthquake, flood, theft, or power surge – can be added depending on the client’s needs. Coverage can also extend beyond the building itself to include household contents, if explicitly added.
Price should not be the main criterion
“The cheaper the policy, the fewer risks it covers and/or the lower the insured sums – i.e., the maximum compensation in case of damage,” noted Kolchakova. She stressed that disappointment often arises from a lack of awareness of the policy conditions, leading clients to expect higher compensation than what is contractually defined. Consulting with an insurer is therefore key to choosing the right product.
Support for farmers
Kolchakova also pointed out that farmers can benefit from EU co-financing covering up to 70% of the policy cost. Hail is among the main risks covered by these agricultural insurance schemes, making them accessible even for small farms.
Affordable for every household
According to ABZ data, property insurance prices in Bulgaria are among the lowest in Europe and have remained stable despite inflationary pressures. This means that every homeowner can afford a policy that ensures peace of mind and financial security.
“We cannot influence the climate, but we can take preventive measures. Property insurance is precisely such a measure – accessible and effective,” Kolchakova concluded.
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