Insurance Requirements (residential real estate)

General provisions

In the insurance policy must be specified:
“Policy Holder” is Customer or Customer representative (Not Luminor)
“Insured” is Customer - Borrower or Pledger.
“Beneficiary” is Luminor Bank AS Latvian branch, reg. No. 40203154352.

Insured object must be identified by Address according to Property Register (otherwise object will not be identified)

Maximum deductible 500 EUR (fire risk for wooden objects max 10%). Or must be agreed according to Bank’s powers to act
If loan agreement identifies more than one object to serve as a collateral to loan agreement, objects must be clearly identified in insurance contract.
Only legally valid insurance contracts are accepted. In case Luminor receives information that Policy is not paid in agreed payment date and is to be terminated, Luminor holds the right to issue mandatory insurance or collect additional fee (according to agreement).
Has to be insured during all lean period. Renewed policy need to be send to Luminor in a timely manner.

Insurance companies accepted by Luminor across Baltics

Luminor across Baltics accepts insurance contracts issued by following companies and their branch offices:

Lietuvos draudimas AB (incl. PZU Kindlustus as AB “Lietuvos draudimas “Eesti filial)
AAS BALTA
If P&C Insurance AS
ERGO Insurance SE
Seesam Insurance AS
ADB Gjensidige
Compensa Vienna Insurance Group ADB
AAS BTA Baltic Insurance Company
Swedbank P&C Insurance AS
Balcia Insurance SE

Insurance companies accepted by Luminor with conditions

Following insurance companies are accepted with conditions

	Location/market	Accepted insurance lines	Max value limit (incl. VAT) for object
SALVA	Estonia only	All	No limit
BAN	Latvia only	All	No limit

Minimum risk cover

Insurance policy must include:

Object	Apartments, private houses Other buildings Private houses, apartments in renovation (without building permit)	Private houses¹under construction (with building permit)*	Land, parking lots
Min cover required	Named minimal perils: Fire related risks; Natural disasters related risks; Water damage (leakage, engineering system accidents) related risks; 3rd party damage (e.g. theft, vandalism, robbery).	Named minimal perils: Fire related risks; Natural disasters related risks; 3rd party damage (e.g. theft, vandalism, robbery).	No insurance required

¹“House under construction” when the building permit is required from the law.
*property insurance with clause that cover is valid during construction works (OR Construction policy)

Sum insured

All insured objects must be insured with full recovery/renewal/replacement value.

Required minimal Recovery/Renewal/Replacement**

	Required replacement value EUR/m2
Apartments and private houses	From 1200 EUR/m² (if construction material is wood only - from 1300 EUR/m²)”

*Replacement value in projects under construction is total sum of the project.
**Not applicable to “Other buildings”

Under-insurance is not allowed.
It is obligation of insured and insurer to avoid underinsurance.
If property is to be insured in actual, market, underinsurance or first loss limit insurance (if mentioned in particular insurance policy), it must be agreed according to Bank’s powers to act.