Compulsory Property Insurance: The Easiest Way to Protect Your Property!

What is Compulsory Property Insurance?

Compulsory property insurance is a mandatory type of insurance for property owners in the Republic of Azerbaijan. This insurance provides protection for residential and non-residential buildings against unexpected events.

What Risks Does Compulsory Property Insurance Cover?

This type of insurance provides financial coverage to the property owner in the following cases:
• Fire – damage to the house or premises due to fire.
• Explosion – gas leakage or other explosion incidents.
• Natural disasters – earthquakes, floods, storms, and other natural calamities.
• Water leakage – pipe bursts or water damage from a neighboring apartment.
• Illegal actions – unlawful acts by third parties, including vandalism and theft.

Who Must Obtain Compulsory Property Insurance?

According to Azerbaijani legislation, the following individuals and entities must obtain compulsory property insurance:
• Individuals – anyone who owns an apartment or house.
• Legal entities – businesses that own non-residential properties.
• State and private organizations – institutions responsible for properties.

Insurance Amount and Rates

The cost of compulsory property insurance is determined based on the region where the property is located and its market value. For apartments and private houses, the insurance rates are standard and vary depending on the location:
• Baku – 50 AZN (coverage of 25,000 AZN)
• Ganja, Sumgayit, Nakhchivan – 40 AZN (coverage of 20,000 AZN)
• Other regions – 30 AZN (coverage of 15,000 AZN)

What to Do in Case of an Insurance Event?

If an insurance event occurs, follow these steps:

1. Immediately inform the insurance company.
2. Gather the necessary documents regarding the incident.
3. Wait for the damage assessment by an insurance specialist.
4. Receive the insurance payment.

Fines for Not Having Compulsory Property Insurance

Property owners who fail to obtain compulsory property insurance may be fined. The fines are as follows:
• Individuals – 30 AZN
• Officials – 80 AZN
• Legal entities – 110 AZN

How to Get Insured?

To obtain compulsory property insurance:

1. Contact official insurance companies.
2. Order through online platforms.
3. Meet with an insurance agent to sign a contract.

Conclusion

Compulsory property insurance is one of the simplest and most effective ways to protect your property. If you are a property owner, comply with the law, insure your property, and safeguard yourself against future risks!