Property insurance

Compulsory insurance of immovable property

Sum insured for compulsory insurance of other immovable property, except residential houses and apartments, are determined as follows:

• for structures and buildings - the cost of construction of the same type of structure and building at the location of the property that is the subject of insurance - in the amount of restoration cost. When determining the restoration value, the wear rate of the materials and the technical condition of the property subject to insurance are taken into account;
   
• For non-residential areas - the same type and at the location of the property that is the subject of insurance in the amount of the average market value of the property in the same technical condition

Excluding residential houses and apartments, the deductible for compulsory insurance of other immovable property is agreed upon in the relevant compulsory insurance contract.

The sum insured and deductibles for compulsory insurance of residential houses and apartments are determined as follows:

Immovable properties in Baku;

Immovable properties in Ganja, Sumgayit və Nakhchivan;

Immovable properties in other settlements;

When the above-mentioned sum insured is less than the market value of the property, the damage caused as a result of the insured event is paid in full, provided that the loss does not exceed the sum insured.

The insurance premium for the compulsory insurance of immovable property is determined by applying the rates expressed as tariffs to the sum insured, depending on the purpose and characteristics of the property.

The rules for determining the insurance rates for compulsory immovable property are determined by the financial markets control body, provided that it does not exceed 0.2 percent of the sum insured for residential houses and apartments.

Compulsory insurance of civil liability related to the use of immovable property
 

Sum insureds for damage caused to third parties as a result of an insured event are determined as follows:

• 5,000 manats for damage to the health of an individual provided that the total insurance amount for damage to the health of individuals does not exceed 50,000 manats;
• 50,000 manats for property damage.