Mandatory Real Estate Insurance in Croatia: A Comparison

Published on September 29, 2025 and written by Cyril Jarnias

Mandatory Real Estate Insurance in Croatia

In a booming real estate market like Croatia’s, understanding the specifics of mandatory insurance is essential for every investor, whether local or foreign. As the country attracts increasing capital through its picturesque landscapes and pleasant climate, it becomes crucial to navigate the various insurance policies, which not only ensure asset protection but also legal compliance with local regulations.

This article aims to decode the various building insurance contracts while highlighting the most advantageous options, enabling buyers to make an informed and wisely calculated decision.

Specifics of Home Insurance in Croatia

Specifics of Home Insurance in Croatia

In Croatia, home insurance is generally not mandatory for owners, except when required by contract for a mortgage. For tenants, insurance is not legally required but strongly recommended and often requested by landlords to protect their personal property and civil liability.

Types of Coverage Offered

Standard Coverage	Additional Guarantees (Optional)
Fire	Seismic Risks (Earthquake)
Water Damage	Floods
Theft/Burglary	Electrical Damage
Civil Liability	Glass Breakage
Storm/Hail/Snow	Legal Protection

Common risks specific to Croatia include:

• Earthquakes, particularly in certain exposed regions
• Floods, frequent in several areas of the country

Some companies offer specific extensions for these natural risks, which are not always included in the basic package.

Legal Obligations and Recommendations

• Owners: insurance not mandatory except for bank clauses; highly recommended to protect real estate assets.
• Tenants: no strict legal obligation, but insurance is often required by the landlord.
• Civil liability insurance is generally included in multi-risk home insurance.

Criteria Considered by Croatian Insurers to Set Premiums

• Value of the insured property (building and contents)
• Geographical location (seismic or flood risk zone)
• Type of dwelling (single-family home/apartment)
• Level of home security (anti-theft systems, alarms)
• Living area
• Amount of chosen deductibles

Comparison with Other European Countries

Criterion	Croatia	France/Germany
Legal Requirement	Rarely mandatory	Mandatory for tenants in FR
Premiums	Generally lower	Higher in major cities
Earthquake/Flood Coverage	Optional/high frequency	Optional or automatic

Coverage against natural disasters is more regularly subscribed to in Croatia than in some other European countries where these events are less frequent.

Practical Tips for Expatriates

• Check if your French or international contract temporarily covers your setup before taking out a local policy.
• Request an English/Croatian translation of the contract if necessary.
• Declare all specific features of the insured property: cellars, separate garages…
• Prepare a detailed and itemized inventory of movable property; this speeds up any compensation process.
• Be aware of sometimes lengthy administrative delays: allow for a buffer before actual move-in.

To facilitate your procedures:

• Research the local reputation of insurers; prioritize those with English/French-speaking customer service if needed.
• Always compare multiple quotes as there are few universal standard contracts.
• Pay attention to the explicit inclusion or exclusion of earthquake/flood guarantees based on your residence location.

In Croatia, the absence of legal obligation does not exclude natural risks or those related to common theft/damage. Appropriate insurance is therefore highly recommended for both residents and expatriates.

The Importance of Civil Liability for Property Owners

Civil liability refers to the legal obligation for any person to repair damages caused to others due to their fault, negligence, or the use of their property. For property owners, it involves compensating for harm suffered by third parties (neighbors, passersby, tenants) resulting from maintenance defects, imprudence, or accidents related to their real estate property.

Why is Civil Liability Crucial for Property Owners?

• Protect one’s assets against the financial consequences of damages caused to others.
• Prevent costly disputes and legal recourse.
• Meet legal obligations, particularly in condominiums or in certain countries.

Examples of situations involving a property owner’s civil liability:

• A passerby falling due to poorly maintained pavement in front of the building.
• Water damage from their apartment affecting the neighborhood.
• Falling facade element injuring a third party.

Specifics of Civil Liability in Croatia

In Croatia, property owners’ civil liability is regulated by laws that impose:

• A duty to maintain and secure the real estate property.
• An obligation to repair damages caused to third parties (material or bodily).
• For condominium buildings, the legal obligation to take out civil liability insurance covering common areas and damages to third parties.

Legal Obligations for Property Owners in Croatia:

Property Type	Civil Liability Insurance Requirement	Coverage Details
Condominium Apartment	Yes	Common areas, damages to third parties
Single-Family Home	No, but highly recommended	Damages to neighbors, passersby, etc.
Rental Building	Yes	Tenants, visitors, external damages

Common Risks for Property Owners:

• Fire, explosion, or water damage affecting third parties.
• Falling objects, slips, structural defects.
• Electrical or gas problems causing accidents.

Importance of Adequate Coverage:

• Without insurance, the owner must personally bear all repair and compensation costs.
• Sufficient coverage protects assets and ensures peace of mind against unforeseen events.

Comparison of Civil Liability Insurance Policies in Croatia

Insurance Policy	Coverage Scope	Concerned Parties	Compensation Cap	Frequent Exclusions
Condominium Insurance	Common areas, third parties	Neighbors, passersby	High	Intentional faults
Non-Occupant Owner Insurance	Building damages, third parties	Tenants, visitors	Medium to High	Own property damages, hidden defects
Standard Home Insurance	Included civil liability	Accidentally harmed third parties	Medium	Professional damages

Financial and Legal Benefits of Good Coverage:

• Coverage of legal fees and compensation costs.
• Preservation of real estate asset value.
• Legal security against victim claims.
• Better attractiveness of the property for rental or sale.

Choosing insurance with good civil liability coverage guarantees the financial and legal protection of the owner against unforeseen consequences related to their real estate property.

Comparison of Coverage for Rental Risks in Croatia

The main insurance companies in Croatia offer several types of coverage for rental risks, tailored to the needs of owners and tenants. These coverages generally include:

• Material Damage: Protection against property damages (fire, flood, storm, earthquake).
• Civil Liability: Coverage for damages caused to third parties or their property.
• Rent Default: Compensation for the owner in case of non-payment by the tenant.
• Damages Caused by the Tenant: Reimbursement or repair following intentional or accidental damages.

Here is a comparative table summarizing typical available offers:

Coverage Type	Risks Covered	Annual Premium Level (€)	Deductible (€)
Material Damage	Fire, flood, storm	80 – 200	100 – 500
Civil Liability	Damages to third parties	50 – 120	Variable (often low)
Rent Default	Non-payment	150 – 350	First month not covered
Tenant Damages	Intentional/accidental damages	120 – 300	Based on damage assessment

Concrete example:

A Croatian owner who subscribed to a “multi-risk” policy with a major national company receives full compensation for a fire claim up to the total insured value (deductible set at €250). However, for rent default due to the tenant’s job loss, only part of the amount is reimbursed after deducting one unpaid month. Comparatively, some low-cost insurance explicitly exclude damages related to natural disasters and impose a higher deductible.

Essential criteria when choosing insurance:

• Level and actual extent of guarantees (inclusion/exclusion of natural disasters)
• Maximum insured amount vs actual property value
• Deductible applied per claim
• Terms and speed of compensation
• Reputation and financial strength of the insurer

Legal specifics unique to the Croatian market:

– Regular policy updates are strongly recommended to keep up with property valuation.

Croatian property owners are advised

– To perform exhaustive photo documentation before any rental

– To combine standard home insurance with civil liability to maximize their protection

In Croatia, there is also particular emphasis on coverage against natural risks such as earthquakes, strong winds, floods. Some companies include these clauses in their standard policies; therefore, it is always necessary to carefully examine what is included.

Comparative study between two policies:

An apartment rented in the historic center benefits from an international insurer:

• Annual premium: €180
• Coverage: material damage + civil liability + legal protection
• Deductible: €300

The same property insured with a local provider offers:

• Annual premium: €110
• Limited coverage mainly for common damages (excludes earthquakes/floods)
• Deductible: €450

This differential illustrates that one should not limit themselves to price but analyze each contractual clause point by point so that the insurance truly meets the intended risk profile.