Insurers add war-risk cover to home policies, sometimes without consent

More insurers are including cover for war-related damage in home insurance, sometimes adding it by default and raising premiums. Seesam customers recently received higher renewal quotes, ERR reports.

One customer with a 200-square-metre home was quoted an annual premium of 245 euros, up from 190 euros, an increase of nearly 30 percent. Seesam said the rise included a new charge for war-risk cover.

Seesam’s head of insurance, Indrek Petter, said the cover protects homes against accidental explosions involving military drones, rockets, shells and mines. The additional cost is about one euro a month for smaller apartments and around three euros for an average-sized house, depending on its size. The cover was added automatically, without asking customers for consent; customers must contact the company if they want to opt out.

Seesam began offering the cover after a drone from Russia struck the Auvere power plant and drone parts were found in fields. Swedbank and Elama Kindlustus also cover war damage without charging an extra fee. If was due to introduce cover for its customers the following week, also at no additional charge. If product manager Hardi Saarniit said it was intended for the current situation, in which Russia and Ukraine are at war and drones stray into Estonian airspace. The cover would not apply if martial law were declared in Estonia.

The Estonian Insurance Association hopes security-related costs will not raise average premiums. Its board member, Lauri Potsepp, said insurers are moving towards tailoring packages to customers’ needs, which can help keep prices under control.