Only one out of five localities in Galati county, severely hit by the floods recently, had mandatory insurance at the end of August, according to data from PAID – the entity that manages the compulsory home insurance scheme against floods, earthquakes, and landslides. 

The insurance rates tend to be much lower than the average in rural areas, which are typically hit by floods.

In the less-developed county of Vaslui, less than 13% of the total houses were insured.

"The first estimates show that around 1,500 damage files will be opened," Cosmin Tudor, PAID's deputy general director, told Hotnews.ro. 

The compensation paid under standard mandatory home insurance is RON 100,000 (EUR 20,000) for brick homes and RON 50,000 (EUR 10,000) for less robust buildings.

Comparatively, the Government set aside EUR 100 mln for roughly 10,000 households hit by the floods (EUR 2,000 per household).

iulian@romania-insider.com

(Photo source: Inquam Photos/George Calin)