The next important event after acquiring a house or apartment in Cyprus is real estate insurance. Especially if you are not going to live there yourself, but to lease. Home insurance on the island is not a problem for foreigners, because Cypriot agencies willingly insure visiting investors. It does not matter for them whether you constantly live on the island or occasionally, and from which country you came – the main thing is that insurance contributions are made on time.
Insurance in Cyprus: insured events and the process of registration
Basically, agencies in Cyprus provide insurance in case of theft, fire, and any natural disasters that led to the destruction or damage to housing. A home insurance contract may have specific insured events: vandalism, falling tree trunks due to bad weather, destruction of property due to air transport accidents. Each agency has its own packages of insurance services, on the list of which the cost of insurance depends.
For its registration, you will need to provide the agent with all the documentation confirming the ownership of the property. This is a title or contract of sale if the property is brand new and a certificate of ownership has not yet been received. Also, the agent will need to make sure that you are legally staying in Cyprus, so he will ask you to show the foreigner and pink-slip (or another document permitting residence). After this preparatory stage, an insurance contract is drawn up.
The cost of insurance of an apartment or house in Cyprus
To determine the size of insurance, the age of the building is important. If this is a secondary housing, which is a dozen or more years old, then its insurance will be more expensive than that of a fresh apartment in a new building. And your contributions in this case will grow along with the age of the building.
Real estate insurance also includes a detailed examination by the agency of your construction site. The insurer may request its drawing and design, as well as information on the materials of which the house is built. If, for example, this is a tree, then its insurance will be 2-2.5 times more expensive than a brick building, because it is more prone to fire.
Real estate insurance is your guarantee of compensation in the event of damage, and its amount will be based on the value of the property and the property located in it. In separate columns, a detailed inventory of the values you want to insure is made. And in an insured event, the agency will focus only on the amounts specified in the contract, so it is important to take everything into account.
Home insurance, the cost of which is 50,000 euros, and property is estimated at 5,000 euros, will require annual insurance in the amount of 175 to 450 euros. On average, the cost of property insurance is 2.5 euros for every 1000 euros of property value.