In August 2019, the Federal Law on Home Insurance came into force. The need for it arose after a series of emergencies throughout the country, as a result of which people were left without a roof over their heads and needed material support from the state.
The essence of the new law
Traditionally, in Russia, residential property insurance, including the only one, is not popular. The number of sold insurance policies of this category throughout the country accounts for no more than 10% of the total number of households.
On August 4, 2019, Federal Law No. 320, dedicated to insurance of residential premises against emergencies, entered into force. It was developed and approved due to the increase in the number of accidents involving government costs. In particular, these include the destruction of citizens' property by floods, forest fires, and explosions of household gas.
The uninsured property of the affected people is partially or completely destroyed, becomes unsuitable for living and use. On their own, of course, they cannot provide themselves and the people living with them with housing and all the necessary things in the shortest possible time. Here the state comes to the rescue, allocating large sums to cover losses.
The new law aims to stimulate voluntary home insurance against the consequences of emergencies in order to reduce the burden on the Federal Treasury. It does not provide for the mandatory inclusion of insurance amounts in payments for housing and communal services for owners, even in regions with an increased risk of emergencies.
In case of refusal to conclude an insurance contract, a citizen who has lost property as a result of an emergency can still apply for assistance from the state, municipal authorities and local administration. Although earlier it was suggested to refuse this. The Ministry of Finance pushed the idea of transferring the new dwelling to the injured person not in ownership, but on the basis of social lease.
The new Federal Insurance Law is primarily aimed at local authorities. They have a new responsibility: the development, development and promotion of real estate insurance programs among the population of their region. Success or failure on this issue will be one of the key elements in assessing the performance of municipalities and governors.
Operating principle
Legislative amendments, which came into force in August, created tools that allow local authorities to independently establish rules and mechanisms for assessing and covering damage, taking into account the voluntary household insurance system. In fact, now all procedures related to the loss of property as a result of an emergency fall on the shoulders of the administration and depend only on their promptness and efforts.
Based on the innovations, the injured citizen cannot claim compensation in full or a similar amount without concluding an insurance contract. The administration will allocate to such a person the premises that are available at the moment, without giving the right to choose. For example, a person who is the owner of an apartment or house can be accommodated in a hostel.
The new Federal Law entrusted the All-Russian Union of Insurers with the obligation to create a unified information base for recording real estate insurance contracts, as well as organizing interaction with local and regional authorities in the field of informing citizens.
Significant terms of the contract (sum insured, occurrence of an insured event, coverage of losses, refusal to pay) will be spelled out in projects developed by local insurance companies together with the administration. They will be placed in the Unified Information System, accessible to every citizen. Depending on the region, the set of insurance claims will vary.
This law is intended to stimulate home insurance. If the owner, who has housing in a prestigious area with expensive repairs and furnishings, wants to receive compensation for them, he will have to conclude an additional insurance contract. They are of an individual, evaluative nature. You can find out about the cost and conditions only after checking the property by professional appraisers. Works of art and other valuable items (jewelry, antiques, furniture, household appliances, equipment and apparatus, branded clothing) also require the conclusion of separate insurance contracts.
Under the new law, a housing certificate issued to affected owners can be used to purchase housing wherever and whenever. Previously, it was assumed the possibility of obtaining real estate only in their region.
To conclude a home insurance contract, the owner is not obliged to independently come to the office of the insurance company. It will be enough to put a tick in the appropriate box in the notice of charges for housing and communal services and pay the prescribed amount. The contract is automatically concluded from the month following the date of payment. Updated payments in 2020 will be received by residents of 14 regions where pilot programs of insurance against emergencies were launched: St. Perm Territory.
