PAD insurance
Key characteristics
- Coverage for damages caused by natural phenomena
- Three covered risks: earthquake, landslides, and flooding
- Mandatory insurance
Home insurance is essential to protect your belongings. In the event of unforeseen events such as fire, theft or damage caused by bad weather, home insurance provides you with financial support and assistance in quickly recovering damages.
What is PAD insurance?
PAD is the insurance policy against natural disasters. According to law no. 260/2008, homeowners have the obligation to have this mandatory home insurance. PAD insurance offers coverage for damage caused by natural phenomena. PAD covers three risks: earthquake, landslide and flood.
What is PAD insurance?
PAD is the insurance policy against natural disasters. According to law no. 260/2008, homeowners have the obligation to have this mandatory home insurance. PAD insurance offers coverage for damage caused by natural phenomena. PAD covers three risks: earthquake, landslide and flood.
What kind of homes can be insured with the PAD policy
The home insurance against natural disasters can be taken out for several types of houses, including work housing, temporary housing (temporary accommodation), vacation housing, social housing, protocol housing, and intervention housing.
This type of insurance covers the damage caused because of a natural disaster, regardless of its direct or indirect effect.
To qualify for the PAD policy, homes must be located in Romania and owned by an individual or legal entity registered with the tax authorities.
What kind of homes can be insured with the PAD policy
The home insurance against natural disasters can be taken out for several types of houses, including work housing, temporary housing (temporary accommodation), vacation housing, social housing, protocol housing, and intervention housing.
This type of insurance covers the damage caused because of a natural disaster, regardless of its direct or indirect effect.
To qualify for the PAD policy, homes must be located in Romania and owned by an individual or legal entity registered with the tax authorities.
What kind of homes can’t be insured
Homes located in buildings classified as seismic risk class 1, following expertise carried out by certified technical experts, cannot receive insurance for the risks covered by the PAD policy.
Annexes and other constructions not structurally connected to the building covered by PAD cannot receive insurance. The policy also excludes coverage for the goods inside the house.
What kind of homes can’t be insured
Homes located in buildings classified as seismic risk class 1, following expertise carried out by certified technical experts, cannot receive insurance for the risks covered by the PAD policy.
Annexes and other constructions not structurally connected to the building covered by PAD cannot receive insurance. The policy also excludes coverage for the goods inside the house.
How to get the mandatory home insurance
Mandatory home insurance (PAD) covers a period of 12 months. Financial damages caused by earthquakes, landslides or floods are covered based on the type of insured house.
PAD insurance must be paid in advance, before the previous policy expires.
In the event of damages resulting from the risks covered by PAD, the insurer repays the insured amount on the date of the event by paying an additional premium deducted from the compensation owed. The insurer will calculate the insurance premium based on the remaining insurance period and the compensation received.
If the home changes ownership during the PAD insurance contract, the insurance remains valid and transfers to the new owner through an additional document issued by the insurer.
How to get the mandatory home insurance
Mandatory home insurance (PAD) covers a period of 12 months. Financial damages caused by earthquakes, landslides or floods are covered based on the type of insured house.
PAD insurance must be paid in advance, before the previous policy expires.
In the event of damages resulting from the risks covered by PAD, the insurer repays the insured amount on the date of the event by paying an additional premium deducted from the compensation owed. The insurer will calculate the insurance premium based on the remaining insurance period and the compensation received.
If the home changes ownership during the PAD insurance contract, the insurance remains valid and transfers to the new owner through an additional document issued by the insurer.
Types of Mandatory Home Insurance
There are two types of mandatory home insurance, the categories being determined based on the construction of the home. Thus, there are:
Type A Housing
Type A house has a resistance structure built of reinforced concrete, metal or wood, external walls of stone, wood, burnt brick or any material resulting from a chemical or thermal treatment.
For type A housing, the insured amount is 100,000 lei, and the insurance premium amounts to 130 lei per year.
Type A Housing
Type A house has a resistance structure built of reinforced concrete, metal or wood, external walls of stone, wood, burnt brick or any material resulting from a chemical or thermal treatment.
For type A housing, the insured amount is 100,000 lei, and the insurance premium amounts to 130 lei per year.
Type B Housing
Type B housing is built using unfired brick or materials that have not undergone chemical or thermal treatment, such as clay.
For this type of house, the insured amount is 50,000 lei, and the insurance premium costs 50 lei per year.
Type B Housing
Type A house has a resistance structure built of reinforced concrete, metal or wood, external walls of stone, wood, burnt brick or any material resulting from a chemical or thermal treatment.
For this type of house, the insured amount is 50,000 lei, and the insurance premium costs 50 lei per year.
The Differences between PAD and Optional Insurance
From a legal standpoint, things are clear – the mandatory insurance must be concluded by every homeowner (except for owners of homes in seismic risk class 1), otherwise the homeowners risk fines.
Optional insurance is dependent on the will and choice of the homeowner.
The Differences between PAD and Optional Insurance
From a legal standpoint, things are clear – the mandatory insurance must be concluded by every homeowner (except for owners of homes in seismic risk class 1), otherwise the homeowners risk fines.
Optional insurance is dependent on the will and choice of the homeowner.
PAD Benefits vs Optional Home Insurance Benefits
To protect your home, you must understand the differences between mandatory (PAD) and optional insurance. Each option provides distinct advantages and covers different risks, offering solutions tailored to the needs of each homeowner.
- You are legally covered
- It covers damage caused by natural disasters
- Affordable price.
You can verify our insurance here.
The optional insurance offers a series of advantages that cover risks not included in the mandatory insurance. Benefits:
- Higher coverage, depending on the options included in the insurance contract.
- Coverage for several risks, including fire, theft, car accidents, broken pipes, atmospheric phenomena, and other natural disasters not covered by PAD.
- The option to insure home goods.
PAD Benefits vs Optional Home Insurance Benefits
To protect your home, you must understand the differences between mandatory (PAD) and optional insurance. Each option provides distinct advantages and covers different risks, offering solutions tailored to the needs of each homeowner.
- You are legally covered
- It covers damage caused by natural disasters
- Affordable price.
You can verify our insurance here.
The optional insurance offers a series of advantages that cover risks not included in the mandatory insurance. Benefits:
- Higher coverage, depending on the options included in the insurance contract.
- Coverage for several risks, including fire, theft, car accidents, broken pipes, atmospheric phenomena, and other natural disasters not covered by PAD.
- The option to insure home goods.
