Insurance claims from property owners affected by the devastating fires in mountainous Limassol are estimated to have reached €20 million, with the figure expected to rise as additional claims are submitted over the next three to four weeks.
Andreas Athanasiadis, general director of the Cyprus Association of Insurance Companies, told Philenews that approximately 150 compensation claims had been submitted by yesterday, which will be examined based on the terms of each contract.
The burden of compensation payments is expected to fall not necessarily on large insurance companies, but primarily on insurers that had clients in Souni, Zanakia and other areas where property values are significantly higher than in other affected communities.
High-value properties drive claims
According to information received, in one case alone, a property that appears 30% destroyed presents damages calculated by the owner in hundreds of thousands of euros. At first glance, some destroyed homes appear to exceed €1 million in value, whilst others are worth several hundred euros, with properties of much lower value also present.
When asked to comment on information regarding whether many of the large damaged or destroyed homes belong to non-Cypriots, Athanasiadis confirmed that “in the fire-affected area there were indeed relatively high-value properties owned by foreigners”.
Insurance coverage limitations
Regarding the percentage of property damage costs that insurance companies will cover, Athanasiadis explained that if a house was worth €200,000 when built but the owner insured it for €100,000 for personal reasons, “compensation will not be given based on the €200,000 but on the €100,000 for which it was insured”.
Property owners must also be concerned about compliance with insurance policy terms. For example, “if owners were required to clear the perimeter of their property from grass, plants etc. and failed to do so, this will be taken into account”.
Government damage assessment
The Interior Minister, citing a census conducted by Limassol District Administration, reported that damage was caused to 440 residences in total, of which 211 were completely destroyed. Additionally, 81 storage facilities, 19 commercial premises and 101 vehicles were destroyed.
The minister clarified that for completely destroyed licensed residences, payment will be made in three instalments: 25% upon application submission, 25% upon securing a consultant (architect/civil engineer), and 50% upon completion of 50% of construction work.
For unlicensed residences located outside residential zones that cannot secure necessary permits, “financial assistance equal to 25% of the assessed damage will be granted”.