Paid damages in case of sudden floods could top EUR 26 million in Romania

The Pool of Insurance Against Natural Disasters (PAID), which issues compulsory home insurance policies in Romania, estimates EUR 26 million as the maximum amount of damages that could be paid in case of sudden floods after the heavy snowfall in recent weeks. The number of potentially affected households could reach 33,000. The rural areas of South-East Romania are at the highest risk of flooding. "Damage caused by the weight of the snow will not be covered, but the floods caused by melting snow will be covered by the mandatory policy. We cover equity losses of up to EUR 250,000 for each insured event”, says Marius Bulugea, General Manager of PAID. The amounts necessary to cover the maximum amount of compensation will be recoverable from the reinsurance program. The reinsurance contract concluded with 50 international companies has a threshold of EUR 300 million. The Pool of Insurance Against Natural Disasters had in late January just over 500,000 contracts signed. The number of customers went down continuously in the last six months. In August of last year the company peaked at almost 830,000 insurance policies. Alex Camburu, alex.camburu@romnaia-insider.com (Photo source: scx.hu)