With the upcoming introduction of the euro, insurance companies in Bulgaria have assured that policy prices will remain stable and will not be adjusted solely because of the currency change. Nina Kolchakova, Secretary General of the Association of Bulgarian Insurers, clarified this on Bulgaria ON AIR.

She explained that during the transition, insurance policy prices will be displayed in both leva and euros, before eventually appearing only in euros. However, the actual cost of the policies will stay the same. The insurance sector has established clear guidelines, which are publicly available on company websites. Kolchakova stressed that factors influencing policy prices are unrelated to the currency switch.

Bulgaria currently offers some of the most affordable property insurance in Europe. Households can secure coverage starting at around 50 leva annually, which protects against minor damages. More comprehensive policies, costing between 200 and 300 leva, cover risks like theft or earthquakes. Property insurance premiums are generally lower than those for car insurance, and only about 20-30% of cars in Bulgaria have comprehensive coverage, which is more costly.

Despite an increasing frequency of natural disasters such as floods, hailstorms, and even unusual events like hurricanes and typhoons, most Bulgarians still do not insure their properties. Kolchakova pointed out that in spring and autumn, entire settlements suffer damage from heavy rains and overflowing rivers. While insurance is meant to cover these losses, only about 10% of properties in Bulgaria are insured; the rest of the damages fall on homeowners, municipalities, and the state.

The low uptake in property insurance partly stems from a reliance on government aid and a common belief that such disasters won’t personally affect many people. Kolchakova noted that this misconception is fading as extreme weather events become more common, particularly in Southern Europe, and the attitude of “it won’t happen to me” is becoming outdated. Often, dissatisfaction among insurance customers comes from unrealistic expectations.

She encourages consumers to carefully consider their insurance needs and to ask detailed questions when purchasing a policy. Kolchakova advises against opting for the cheapest option without understanding the coverage, emphasizing that satisfaction with insurance depends on insuring exactly what is needed.