Compulsory insurance of municipal property against earthquakes to be introduced

There must be mandatory insurance of public-owned buildings against natural disasters and earthquakes, amendments to the Municipal Property Act, approved by MPs at first reading stipulate. The property subject to compulsory insurance against natural disasters shall be determined by local municipal councils, the draft read. Now, municipalities are also obliged to insure their real estate but the scope of risks under property insurance is not specified. The legislative amendments adopted at first reading introduce a minimum scope of compulsory insurance coverage of risks to municipal property, including natural disasters.

The Council of Ministers made a decision to oblige municipalities to insure their property against natural disasters and earthquakes at the end of August. The amendments to the Municipal Property Act were submitted for discussion in Parliament at the beginning of September. Compulsory insurance of municipal property against earthquakes and natural disasters became topical after the earthquake in Pernik in May 2012. It turned out that the municipality had not insured its property for lack of money and the State had to spend millions of leva for repairs.

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