HUNGARY: Local insurers paid nearly HUF 40 billion for fire damage in the past 8 years

According to the Association of Hungarian Insurance Companies (MABISZ), between 2010 and 2017, Hungarian insurers paid aprox. HUF 40 billion for a total of 50,000 reported fire incidents. 2012 was the most severe year, with fires causing HUF 10 billion in damage.

The most common period for fire incidents was winter, in the first months of the year. "From my experience, in most of the cases, the fires came more or less from human mistake or neglicence. Fires ignited usually in kitchens from hot oil in pans or stoves, from electrical equipment overheating, or from heaters or burning cigarettes," says Laszlo BERCZI, Chief at the National Fire Service.

The data provided by The Central Bank of Hungary (MNB) and The Hungarian Statistical Office (KSH) shows that in 2018, of a total of 4,439,959 residences, only 3.19 million dwellings were insured. In other words, more than one million residential properties owners would not receive compensation in the case of a fire or other perilous event.

The National Directorate General for Disaster Management (NDGDM) reported around 750 emergency calls for residential fires in January 2019, meaning that in the first month of this year, there was a fire produced every hour in Hungary. While property insurance in Hungary in the past years showed a great weight in the total market share, there are still homeowners vulerable to this type of risk.

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