According to the legal provisions of the Cyprus Law, the insurance of common areas of a jointly owned building is compulsory, at least for the risks of fire, lightning and earthquake.
It is important to point that the relevant provisions refer to policies with insured amount representing the real value of the communal areas, so that in case of damage the reinstatement is done entirely by the insurance company and not by the co-owners.
A policy can cover only risks for fire-explosion-lightning (the basic risks insured) or it can extent to risks such as:
- Aircraft Crash
- Brawl and Political Rebellion
- Malicious damage
- Burst Pipes, Water leakage
- Architecture and Engineering Fees
- Remains Removals
- Glass panes
- Public Liability
A policy covers all common areas which are stated in the general building regulations (eg. stairway, entrance, elevator, boiler room, attics, central pillars, roof etc.).
How are insurance premiums calculated?
The amount of premiums (payment to the insurance company) depends on the choice or package of cover and sum insured.
How is sum insured (value) calculated?
The calculation of the sum insured is based on the construction, age and surface of the jointly owned building in square meters.
Legal Risks and Coverage
The co-owners are liable for public liability coverage in case of personal injuries and/or material damage against third parties inside the common areas of the buildings and the surrounding area of the building. These risks can be included in an independent premium for Public Liability or can either be included in a package of other risks coverage.