Filenews 31 July 2025 - by Theano Thiopoulou
The insurance companies are ready to respond to the payment of compensation to the beneficiaries, to cover damages from the deadly fire that hit the mountainous Limassol, to houses, cars, premises and business premises, as soon as they get their hands on the reports of the appraisers.
Speaking to Fileleftheros, the general director of the Association of Cyprus Insurance Companies (SAEK) Andreas Athanasiades expressed the readiness of the companies for the payment of compensation to the insured properties, which is not excluded if the estimates "run" quickly, tobe done within the week or next week at the latest.
Mr. Athanasiadis assured that, as soon as there are claims from those affected, the insurance industry will respond in a short time. At the moment, it is not known how much private companies are required to pay, as the process of assessments has not been completed.
According to the recording carried out in the previous days by the Limassol District Administration, damage was caused to 440 residences, of which 211 were completely destroyed, 81 warehouses, 19 commercial premises and 101 vehicles.
Insurance companies usually pay compensation for fire damage, especially if the insurance coverage includes the risk of fire. Such compensation usually covers material damage to property, such as homes or businesses, caused by fire.
There are several asterisks
But let's make a small analysis, from the information we have gathered, so that the insured who have been affected by the fire know what to expect from the insurance companies and what restrictive terms there may be in their insurance policies.
Regarding the number of 101 cars that were destroyed and given as a number by the Limassol District Administration, their owners should be aware that only those who have comprehensive insurance and not those who have the simple and mandatory insurance, which is against third parties, will be compensated by private insurance companies.
Basic compulsory insurance only covers damages that the owner of the vehicle may cause to third parties. It does not cover damage to your own vehicle from fire, flood, theft or other accident.
Comprehensive car insurance usually covers damages caused by accidental incidents, accident, fire, theft or attempted theft, and malicious actions. Additional coverages offered separately or as part of a more comprehensive package may include coverage for damages from riots, strikes, labour disturbances and natural phenomena.
Let's now see what happens to houses that have burned or suffered serious damage. Insurance policies can cover both the value of the house (house) and the value of the contents, depending on the degree of coverage that the person concerned has done.
Let us clarify with examples:
- If the owner of the house that has been burned or damaged has taken out home insurance, declaring the value of the property, for example €100,000, while the actual value is €200,000 – to pay a lower premium – then the insurance company will compensate him for the amount he has declared in the insurance policy and not for the actual value of the property.
Therefore, the compensation that will be paid to him will be a "haircut" and the value will be adjusted for what he has declared, a phenomenon that in insurance terminology is called underinsurance.
Whether the owner of an insured home will be compensated also depends on whether the policy includes an exception that exempts the insurance company from the obligation to pay the claim for fire damage.
Small print and exceptions
Policyholders should carefully re-read the insurance policy of the home. Some insurance policies exclude damage caused by fire, accidental or not, to forests and shrubs.
With the information we have gathered, in such a case the insurance company may reject the claim and not pay any amount.
There are also some insurance policies that exclude damage from forest and bush fires and may offer coverage in the form of an extension of the policy, with the payment of an additional premium.
As it has been clarified to us, those who have taken out private insurance should read the terms carefully, because there may be a condition that the coverage of damage from forest and bush fire is valid only if the residence was fenced and the area was kept clean of grass, bushes and garbage...
Now, compensation will be given for the contents of the house if the owner has insured it (furniture, electrical appliances) and at what value he has declared the household equipment.
Generally, interested parties need to know whether home fire insurance is designed to cover the cost of repairing and replacing items damaged or destroyed in a fire, as well as any additional living expenses incurred during the repair of the home. Home fire insurance covers a large number of risks, with the main coverage being fire, lightning and explosion risks.
Among other things, it can cover malicious damage, an earthquake or volcanic eruption, a fall of an aircraft or other flying device, a storm, cyclone, a hurricane, a storm, a flood or an overflow of the sea.
The money that the state will allocate for the restoration of damages to homes and other premises will cover the amounts that the insurance companies will not pay, based on the terms and provisions of each contract.
