The Russian drone crashed on a block of flats in Galati: What does the company say where the most damaged apartment is insured

“For the time being it is impossible to say whether or not we will grant compensation, but we are analyzing all support options,” Generali officials, the company that insures the most seriously damaged apartment after a Russian drone crashed last night on a block of flats in Galati, told HotNews.

“It is a situation that depends a lot on the investigations of the authorities. Then we will also intervene to the extent that the legal framework and the contractual framework allow us”, the General officials also specified for HotNews.

The apartment most seriously damaged by the explosion, in the block at Brăilei str. 50, is insured by Generali through an optional home insurance policy.

“In a situation of this type, insurance coverage is subject to contractual terms and conditions derived from the risk of war, occurring on the territory of Romania or other countries, which will need to be carefully evaluated once all relevant information is available. Given the exceptional and complex nature of this incident, it is premature to draw conclusions on potential coverage before a full evaluation is completed,” the company emphasizes.

The insurer's experts are currently liaising with the relevant authorities to be able to assess the damage when possible.

Most insurance does not cover war damage

The National Union of Insurance Companies (UNSAR) announced on Friday, following the incident in Galati, that each insurance company “will analyze the situation according to the concrete circumstances of the case and will act in accordance with the contractual provisions and applicable internal policies, considering the exceptional nature of this type of event”.

“In principle, body falls are a risk covered by voluntary home insurance, but not when we are talking about an act of war. In such situations, such as the fall of drones, the delimitation of the cause is essential in the process of analyzing a damage.

Insurers evaluate not only the effect (for example, damage to a home or a vehicle due to the fall of an “object”), but also the primary cause of the occurrence of the event. If this is associated with an act of war or a military action, then, in principle, the standard exclusion provided for in most policies is activated, says UNSAR.

The insurers' union emphasizes that “these clauses do not represent a peculiarity of the Romanian market, but are standardized at the international level, being included in the contractual conditions precisely to ensure the sustainability of the insurance system in the face of systemic risks of extreme magnitude”.

There are also exceptions where the risk of war is insured

In principle, the risk of war, as also happens with losses caused by terrorism or military coups, social unrest and other such phenomena are not usually insurable risks. This happens all over the world, not only in Romania, UNSAR mentions.

“Of course, there are exceptions, depending on each company or the respective type of insurance. Thus, war risk can be insured, but only through special policies, dedicated and usually intended for companies or transports (CARGO / aviation). The explanation is that no one can predict the extent of damage, the extent, the duration or the economic consequences of a war, which is why, as a principle, reinsurance companies do not include war among the coverages.”

This means that insurers cannot take this risk from customers either.

“And, even if it could be quantified, the cost for which it could be taken over by the insurers could be extremely high, which would risk making the insurance prohibitive. In addition, let's not forget that, in wartime, in principle, martial law is applied, which changes the usual social, medical and patrimonial framework.”, UNSAR officials also specified.

The incident took place on Thursday night, around 02:00, when a drone of Russian origin crashed on a block in the city of Galati. The impact was followed by an explosion and the outbreak of a fire in an apartment located on the 10th floor of the apartment building.