Serbia on the Brink of Disaster: Only 8% of Properties Insured!
Did you know that in Serbia, only 8 to 10 percent of property owners have insurance policies protecting them against catastrophic risks like fires and storms? Yes, you read that right! While natural disasters are becoming more frequent, most citizens remain completely unprotected.
Catastrophic Risks and Climate Change
Zoran Ćirić from the Serbian Association of Insurers warns that the basic insurance policy covers only three risks: fire, lightning, and hail. But if you want to be insured against storms, you need to be aware that this is not included in the standard policy. Storms have become a regular occurrence due to climate change affecting us all.
What Happens If You Don’t Have Insurance?
If you don’t have an insurance policy, don’t expect the state to compensate your damages. The state can only offer humanitarian aid, which is often symbolic. For example, during the major floods in 2014, the average insurance compensation was around 15,000 euros, while humanitarian aid was only about 3,000 euros. So without insurance, you can only count on crumbs.
Serbia Compared to the World
While only about 15% of arable land is insured in Serbia, in the USA this percentage is as high as 90%, and in the European Union about 70%. The difference is huge and clearly shows how vulnerable we are.
Proposal for Mandatory Insurance
The Serbian Association of Insurers has been proposing for years that the state introduce a mandatory insurance policy for catastrophic risks. Imagine – all citizens of Serbia would be protected, and the state wouldn’t have to spend millions on humanitarian aid. The policy would cover earthquakes, supercell storms, fires, and other disasters that hit us every year.
Why Hasn’t This Been Done Yet?
Maybe because no one likes to talk about disasters until they happen. But as Ćirić says, “What happened this year won’t happen again next year” – if we don’t get smarter.
Conclusion
Serbia is on the brink of disaster when it comes to property insurance. Only 8 to 10% of property owners have policies protecting them from disasters. The climate is changing, storms and floods are becoming more frequent, and we are still waiting for something to happen before we react. Maybe it’s time to wake up and realize that mandatory insurance is necessary.
What about you? Have you insured your home or crops? Or are you waiting for the state to give you humanitarian aid of a few thousand euros? Drop a comment, maybe together we can find a solution before it’s too late!
Slug: serbia-insurance-catastrophic-risks-mandatory
