Although about 85% of people in Bulgaria live in their own homes, only around 8% of these properties are insured. Still, in recent years there has been a gradual positive trend, with the share of insured homes slowly increasing. The problem, however, is that the starting base is extremely low, and at the current growth pace it will take years to reach acceptable coverage levels. This was highlighted by Veselin Angelov, Board Member of the Association of Bulgarian Insurers (ABZ) and CEO of Allianz Bulgaria, in an interview for BNR Radio Sofia on January 23, 2025.
Angelov stressed that the importance of insurance becomes even more evident against the backdrop of increasingly frequent and devastating natural disasters. In such a context, people should seriously consider whether they have taken measures to protect their greatest investment – their home. Otherwise, homeowners face the risk of bearing alone the consequences of damage or destruction of their most valuable asset.
According to Angelov, ABZ studies consumer attitudes through regular surveys, which show that decisions about buying insurance are strongly influenced by widespread “myths” that do not reflect reality. For example, one in three people believe insurers do not pay claims, while in fact 95% of policyholders who filed a claim have received compensation. The good news, he noted, is that surveys also show a positive shift in attitudes and growing trust in insurance.
The cost of home insurance should not be seen as a deterrent, Angelov emphasized. Premiums are extremely affordable, certainly much lower than car insurance. On average, a household in Bulgaria pays about BGN 100 per year for coverage of around BGN 100,000. He added that home policies do not cover every possible risk but include a defined set of insured events. This is why, when choosing a home insurance policy, consumers should check the scope of coverage and whether they need to add extra risks. Standard policies usually include Fire and Natural Disasters, while earthquake coverage is often an optional add-on. Insurance intermediaries, Angelov underlined, play an important role in explaining the terms of coverage so that consumers can make informed decisions and be satisfied with their protection.
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