Real Estate Insurance in Cyprus 2024: Key Insights
Real estate insurance in Cyprus in 2024 is an important aspect for both local residents and foreign property owners. The insurance process is regulated not only by local legislation but also by banks and insurance companies. Below are the main points to consider.
1. Mortgage Requirements
For buyers who finance their property with a mortgage, mortgage insurance in Cyprus is mandatory. Banks usually require full insurance for the duration of the mortgage, which covers both the property itself and, in some cases, the borrower’s life insurance.
2. Types of Property Insurance
Property owners in Cyprus can choose different types of coverage depending on their needs:
Building Insurance: Covers damage to the structure (walls, roof, floors) caused by natural disasters (earthquakes, floods, fires) or incidents such as theft, vandalism, and accidents.
Contents Insurance: Protects furniture, appliances, and personal belongings inside the property in case of damage or loss.
Liability Insurance: Covers potential legal liabilities towards third parties, e.g., if someone is injured on your property.
3. Flexibility for Non-Residents
Non-residents can also obtain property insurance in Cyprus without restrictions related to citizenship or residence. This makes insurance accessible to foreign buyers, who represent the majority of property transactions in Cyprus.
4. Typical Coverage
Most insurance policies cover risks such as:
Natural disasters (earthquakes, storms, floods).
Fire, explosions, and smoke damage.
Theft, burglary, and vandalism.
Damage caused by plumbing, heating, or electrical systems.
Third-party damages (e.g., incidents caused by neighbors).
5. Property Valuation
Insurance typically includes an assessment of both the property and its contents. The insurance company will calculate the value of the building and replaceable items (e.g., furniture, appliances). Compensation is usually based on the current market value.
6. Insurance Companies in Cyprus
Cyprus offers a wide range of insurance providers, both local and international. Some well-known companies include Eurolife, Universal Life, Alpha Insurance, and others. Choosing a provider often depends on reputation, policy cost, and coverage details.
7. How to Choose an Insurance Company
Key factors to consider when selecting an insurance company in Cyprus:
Company reputation.
Full list of covered risks.
Claim settlement process and payout timeframe.
Transparency of terms and conditions.
8. Cost of Insurance
The cost of a policy depends on several factors:
Property location (e.g., coastal areas may be more expensive due to flood risk).
Type of property (apartment vs. house).
Market value and level of coverage (e.g., including luxury items increases the premium).
9. Tax Benefits
In some cases, insurance premiums in Cyprus can be partially deductible from your taxable income, depending on your tax status and contract conditions.
FAQ – Real Estate Insurance in Cyprus
Real estate insurance protects you from financial losses due to damage or loss of property caused by risks like fire, flood, earthquake, theft, or vandalism. It is also a mandatory requirement for most banks in Cyprus when you take out a mortgage.
Yes. Most banks in Cyprus require property insurance when providing a mortgage. This protects both the borrower and the lender if the property is damaged or destroyed.
Typically you will need:
- Sale & Purchase Agreement for the property
- Valid passport or ID
- Property valuation report
Bank statement (if linked to a mortgage)
This type of coverage compensates you fully if the property is completely destroyed, for example by a fire or earthquake, up to the insured amount specified in the policy.
The cost depends on the type of property and the level of coverage. On average, annual premiums range from €350 to €1,800.
Most property insurance policies are valid for one year and must be renewed annually. Timely renewal is essential to maintain continuous coverage.
- Notify your insurance provider immediately.
- Provide all necessary documentation, such as police or fire department reports.
- Work with the insurer’s assessors to evaluate damage and receive compensation.
Yes. Landlords can insure the building and its contents, while tenants can purchase additional insurance for their personal belongings and liability.
Yes. Real estate insurance can be extended to cover movable property such as furniture, appliances, and other valuable items. This may increase the premium.
Standard real estate insurance usually covers:
- Fire, explosion, smoke damage
- Natural disasters (earthquakes, storms, floods)
- Theft, burglary, and vandalism
- Damage caused by plumbing, heating, or electrical systems
- Liability and damage to third parties
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Commercial Real Estate Deals
Commercial property transactions in Cyprus are often complex and require legal, financial, and market expertise. Our company Investia, in cooperation with law and consulting firms, provides professional support in real estate insurance and transactions. Insurance companies in Cyprus offer flexible solutions that allow property owners to choose the best policy for their specific needs.