Published on and written by Cyril Jarnias
North Macedonia’s Real Estate Market: Remarkable Growth
North Macedonia’s real estate market is experiencing remarkable growth, attracting both investors and prospective homeowners seeking new opportunities. In this dynamic context, it’s essential to understand the mandatory insurance that accompanies property acquisition in this Balkan country.
Mandatory Insurance for Your Real Estate Investment
Whether you’re a domestic or international buyer, understanding the differences between required insurance policies can prove crucial for protecting your investment and ensuring a smooth transition.
Good to Know:
Mandatory insurance can vary depending on the type of property (residential, commercial, etc.) and its location in North Macedonia.
Comparison of Required Insurance Policies
Through a detailed comparison, this article highlights the challenges and specifics of these essential guarantees, guiding you toward informed and secure choices.
Understanding Mandatory Insurance in North Macedonia
In North Macedonia, certain insurance policies are legally required for property owners to ensure the security of built assets and protect third parties against various risks. These obligations fall within a legislative framework aimed at making real estate market players more responsible and limiting the financial impact of major disasters.
| Type of Mandatory Insurance | Beneficiaries | Covered Risks | Legal/Practical Basis |
|---|---|---|---|
| Fire Insurance | Owners, co-owners, borrowers | Fire damage, sometimes natural disasters depending on the contract | Mandatory in condominiums or when obtaining a mortgage; often required by internal regulations or banking institutions |
| Property Owner Liability Insurance | Owners | Damage caused to third parties (e.g., falling objects on public roads) | Sometimes included in multi-risk contracts or contractually required in certain leases |
Other coverages like multi-risk home insurance generally remain optional but can be made mandatory through contractual agreements between parties.
“Fire insurance is considered the main mandatory guarantee. In practice, it’s primarily required in condominiums or by banks during mortgage financing.”
Reasons for Legal Requirements:
- Collective Protection: prevent major disasters from endangering multiple households (particularly in collective housing).
- Financial Security: ensure quick compensation after a disaster.
- Responsibility Toward Others: financially cover any damage unintentionally caused to third parties.
Impact on Owners and Tenants
- Owners must incorporate these recurring costs, which may increase the overall cost of property ownership but reduces their exposure to major losses.
- For tenants, if certain insurance policies are contractual (required by lease), this also guarantees protection against their own actions that could cause damage to the rented property.
- In the real estate market, these requirements promote better asset valuation and reduce systemic risk related to serious events.
Practical Application Examples
- When a bank grants a loan for purchasing a condominium apartment in Skopje, it requires the buyer to provide fire insurance certification covering at least the mortgaged value.
- In some recent residential complexes, new owners cannot take possession without prior proof of liability coverage toward neighbors.
Main Companies Operating in This Market
Local insurers include:
- Uniqa Macedonia
- Triglav Osiguruvanje AD Skopje
- Eurolink Osiguruvanje AD Skopje
They offer different levels of coverage suitable for both individuals and real estate professionals.
The establishment and strict compliance with mandatory insurance thus play a structuring role throughout the Macedonian real estate ecosystem: they secure private/public investments and help sustainably limit the financial consequences for both individuals and communities in case of major disasters.
Good to Know:
In North Macedonia, property owners must purchase several mandatory insurance policies, including fire insurance and liability insurance, to protect against potential damage to properties and third parties. The strict legislative framework governing these coverages aims to minimize financial losses in case of incidents and ensure real estate security. These legal obligations can influence property ownership costs and affect both owners and tenants, sometimes making the market more rigid. For example, fire insurance is often required when obtaining a mortgage. Among the main companies offering these services are Triglav and Eurosig, which adapt their offerings to meet local requirements. Although these obligations increase costs for owners, they provide increased peace of mind and stability to the real estate market.
Home Insurance Comparison for Property Owners
| Insurance Company (North Macedonia) | Standard Coverage Types | Additional Options | Indicative Costs for Owners |
|---|---|---|---|
| Triglav Osiguruvanje | Fire, water damage, liability, glass breakage, electrical damage | Theft, natural disasters (flood/earthquake), specific valuables, legal assistance | Approximately 3,000 to 10,000 MKD/year depending on area and location |
| Uniqa Osiguruvanje | Building and content damage, fire/explosion, domestic liability | Protection against theft/burglary, extension to external dependencies and individual garages | Similar to Triglav; adjustments based on chosen options |
| Croatia Osiguruvanje | Basic fire/natural elements (wind/hail), water damage | Comprehensive home insurance (full multi-risk), enhanced guarantees for computer equipment or appliances | Starting from 2,500 MKD/year for standard coverage |
Differences Between Coverage Levels
- Standard
- Main damages: fire/explosion
- Water damage
- Property owner liability toward third parties
- Accidental glass/window breakage
- Additional Options
- Protection against theft/burglary
- Natural disaster coverage: earthquake or floods (highly recommended in certain regions)
- Extension to external property or independent annexes
- Comprehensive insurance including specific valuable items
“Extensions covering natural disasters are particularly recommended in seismic zones or areas prone to flooding.”
Importance of Mandatory Insurance
- Home insurance is not systematically mandatory for all property owners in North Macedonia.
- However, it becomes essential when obtaining a mortgage: the bank then requires a policy guaranteeing at least repayment in case of major incidents.
- Some condominiums also impose common insurance covering the building.
Tips for Choosing Suitable Insurance
Key factors to consider:
- Location:
- Urban area: prioritize protection against theft and vandalism.
- Rural/mountain areas: opt for natural disaster extension (flood/earthquake).
- Property type and value:
- Recent apartments often require fewer additional options than single-family homes with dependencies.
- For secondary residences or seasonal rentals: pay attention to clauses regarding prolonged vacancy.
- Budget:
- Carefully compare deductibles offered by each company as well as customer service quality.
Best practices:
- Request multiple personalized quotes with simulations on different additional options.
- Carefully read exclusions stated in each contract before signing.
For optimal balance between cost and security, it’s recommended to choose at minimum a multi-risk guarantee including, besides fire/water damage, theft protection AND a natural disaster option if your area is exposed.
Legal Obligations for Tenants and Owners in North Macedonia
In North Macedonia, legislation requires tenants to purchase tenant liability insurance to guarantee repair of damages caused to the rented property. This protects the owner against financial risks related to potential disasters attributable to the tenant, particularly in case of fire, explosion, or water damage. For owners, it’s recommended (and sometimes contractually required) to purchase insurance covering their own liability as well as that related to the rented property.
Types of Damage Covered by Insurance
Tenant liability insurance generally covers:
- Material damage caused to the property (fire, explosion, water damage)
- Damage caused to others’ property in the building
- Coverage of repairs or reimbursements due to the owner when the disaster is attributable to the tenant
Multi-risk home insurance often also includes:
- Theft and vandalism
- Natural disasters
- Legal protection for rental-related disputes
Common Exclusions
Frequent exclusions include:
- Intentional damage or resulting from gross negligence
- Damage caused by obvious lack of maintenance
- Certain exceptional events not explicitly provided for in the contract (war, terrorism)
| Company | Annual Premium (€) | Coverage Scope | Additional Services |
|---|---|---|---|
| Uniqa | 40–90 | Fire, water damage, private liability | 24/7 home assistance |
| Triglav | 35–85 | Material and immaterial damages | Digital contract management |
| Sava Osiguruvanje | 30–70 | Multi-risk: property & liability | Dedicated mobile application |
Rates vary depending on insured area and deductible level.
Recent Trends: Digitalization and Market Evolution
Digitalization is rapidly transforming the sector:
- Fully online subscription via mobile applications.
- Digital claims declarations enabling accelerated processing.
Some companies also offer:
- Interactive tools to assess needs before subscription.
- Simplified access to assistance via chat or video.
These innovations promote better user experience as well as more transparent and rapid management of policies and compensation.
Possible Sanctions for Non-Compliance
Lack of insurance primarily exposes to:
- Personal obligation to compensate all damages observed after a disaster,
- The possibility for the owner or their insurer to demand full reimbursement,
- In some serious cases: immediate lease termination or even legal actions to obtain compensation.
⬛️ In summary: failing to comply with these obligations exposes both owners and tenants to major financial risk as well as various administrative or contractual sanctions. ⬛️
Good to Know:
In North Macedonia, tenants and owners have a legal obligation to purchase liability insurance to cover damage to others or rental property, such as water damage or fires. Insurance typically covers material and bodily damages but often excludes intentional negligence or deterioration from normal wear and tear. Market offerings vary with premiums based on property size, ranging from basic coverage to options including additional services like legal assistance. With digitalization, more companies allow subscription and management of these insurance policies online, simplifying procedures for users. Non-compliance with these obligations can lead to sanctions, such as fines or repair obligations at their own expense, highlighting the importance for all parties to comply with these legal requirements.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
