Can I go without mandatory home insurance?
No: the PAD natural-disaster policy is mandatory. Under Law 260/2008 (amended by Law 115/2023), all homeowners in Romania — individuals or legal entities — must hold a valid PAD (Disaster Insurance Policy). PAD covers three natural-disaster risks: earthquake, natural floods and landslides. The policy is issued by PAID (the Pool for Insurance Against Natural Disasters). The annual premium is 130 lei for type A homes (concrete/brick structure) and about 50 lei for type B. PAD is a basic insurance; a separate optional policy can cover other risks (fire, theft, damage). In short: any home registered with the tax authorities must have a valid PAD.
📋 The rules
- PAD mandatory for all homeowners
- Covers: earthquake, natural floods, landslides
- Premium: 130 lei/year (type A), ~50 lei/year (type B)
- The policy is issued through PAID
- PAD is basic; extended risks — via an optional policy
🔓 Exceptions
- Extra risks (fire, theft): only via an optional policy
- Type A vs type B homes: different premiums and caps
- Home not registered with the tax authorities: an irregular situation to fix
⚠️ Penalties & fines
Not taking out the PAD policy is a contravention, fined between 100 and 500 lei. Beyond the fine, the real risk is the lack of compensation: without PAD, in an earthquake, flood or landslide, you can't receive money through the PAID system, and state aid can be conditioned on having insurance. To stay compliant: take out a valid PAD policy (online or from insurers), keep proof and renew it yearly. If you want broader protection (fire, theft, installation damage), add an optional home policy. PAD is mandatory, cheap and essential in a high-seismic-risk country like Romania.
📎 Official sources
- Law 260/2008 on mandatory home insurance →
- PAID Romania · Pool for Insurance Against Disasters →
- Financial Supervisory Authority (ASF) →
❓ Frequently asked
Is home insurance mandatory?
Yes. Under Law 260/2008, all homeowners in Romania must hold a valid PAD policy, against natural disasters. It's a basic, mandatory insurance covering the risks of earthquake, natural floods and landslides, issued through PAID.
What does the PAD policy cover?
PAD covers three natural-disaster risks: earthquake, natural floods and landslides. It protects the home's structure against these events. For extra risks, such as fire, theft or installation damage, you need a separate optional policy, taken out in addition to PAD.
How much does mandatory home insurance cost?
The annual premium is 130 lei for type A homes (concrete or fired-brick structure) and about 50 lei for type B. The amount rose from 100 to 130 lei through Law 115/2023. PAD is a cheap insurance relative to the protection it offers.
What fine do I risk without PAD?
Not taking out the PAD policy is a contravention, fined between 100 and 500 lei. More importantly, without PAD you can't receive compensation through the PAID system in an earthquake, flood or landslide, which leaves you unprotected against major damage.
Does PAD cover fire or theft too?
No. PAD is a basic insurance, limited to earthquake, natural floods and landslides. For risks such as fire, theft, explosion or installation damage, you need an optional home policy, taken out separately. Many owners combine mandatory PAD with a more comprehensive optional insurance.
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