BUDAPEST: Roughly 40% of Hungary’s real estate insurance contracts may not provide fully comprehensive insurance, a survey published today by local insurance company Genertel Biztosító Zrt. reveals.
The survey found that 70% of Hungarian real estate is covered by home insurance contracts, but only 20% of those contracts were checked in the last year to determine whether they are sufficient. The survey noted that more than 60% of the contracts were signed in the past one-three years, and if renovations took place during this period, it would lift the value of the properties, so the full value may not be covered.
“The value of an apartment can significantly change due to renovation and modernization,” said Zoltán Lengyel Senior Executive of Genertel Biztosító Zrt. Therefore, according to Lengyel, it might happen that a property will be underinsured if the owners do not adjust their insurance contracts to the new apartment’s conditions. The results of the survey also revealed that the 61% of Hungarians interviewed were not aware of whether their insurance provides full protection.
