Comparison of Mandatory Real Estate Insurance in Greece

Published on April 23, 2026 and written by Cyril Jarnias

The real estate market in Greece stands out for its historical richness and stunning landscapes, attracting many international investors and buyers. However, acquiring a property is not without complexities, particularly regarding mandatory insurance. These play a crucial role in protecting properties and real estate transactions.

In this article, we will explore the major differences between various types of insurance in effect in Greece, their impact on overall acquisition costs, and how they compare with those in other European countries. Understanding these nuances is essential to effectively navigate the purchasing process and avoid unpleasant surprises that could compromise your investment.

Home Insurance in Greece: What You Need to Know

In Greece, home insurance is generally not mandatory, whether for owners or tenants. However, a major exception exists: if the property was acquired through an unpaid mortgage, taking out home insurance becomes mandatory for the entire duration of the loan repayment. Banks often impose minimum guarantees such as coverage against fire and earthquakes — the latter being particularly relevant in a country as seismically active as Greece.

Types of Home Insurance Available

• Building insurance (damage to the structure)
• Contents insurance (personal property and equipment)
• Liability insurance (damage caused to third parties in the home or to the owner in case of rental)

Supplementary Insurance

In addition to “multi-risk home” policies, there are specific insurances to cover certain major risks such as:

• Natural disasters (earthquakes, floods)
• Theft and vandalism
• Glass breakage
• Electrical short circuits

Comparative Table

Type of Insurance	Risks Covered	Level of Obligation
Multi-Risk Home	Fire, water damage, theft/vandalism, liability	Optional except with mortgage
Specific Natural Disasters	Earthquakes*, floods	Optional unless required by bank*
Liability Insurance	Damage to third parties	Recommended

Recent Statistics

Less than 20% of Greek homes are estimated to be insured against all major risks. This rate is significantly lower than that observed in other European countries like France or Germany, where over 95% of households have comprehensive multi-risk home insurance. This low rate is explained by the absence of a legal obligation outside of real estate loans and a less developed insurance culture.

Typical Costs

The average annual cost for a simple multi-risk insurance policy starts around 120 to 200 euros/year for a standard apartment in an urban area; this amount can increase depending on the declared value of the insured property and the level of coverage chosen (inclusion of natural disaster coverage or not). For a villa on an island exposed to earthquakes or extreme weather, it is not uncommon for premiums to exceed 400 euros/year.

Things to Consider When Choosing

• Exact nature of the guarantees offered;
• Applicable coverage limits and deductibles;
• Possible exclusions (sensitive geographical areas);
• Reputation/financial stability of the insurer;
• Free choice now legally recognized regarding the company to subscribe to when imposed by the bank loan.

Key Takeaway

It is highly recommended — even outside of legal obligation — to take out at least a policy covering fire + earthquake given Greece’s natural context. For any purchase with a bank loan: precisely check which guarantees are required before final signing to optimize your protection without overpaying your annual premium.

Insurance Comparison: Choosing the Best Coverage

In Greece, home insurance is not legally mandatory for owners or tenants, except in the case of a mortgage: in this situation, the bank imposes minimum coverage for the entire duration of the repayment. Outside of real estate loans, insurance remains highly recommended due to the high seismic and climatic risks.

Main Available Real Estate Insurance Options

Type of Coverage	Fire	Earthquakes	Natural Disasters (floods/storms)	Water Damage (leaks/bursts)	Theft & Vandalism
Basic Coverage	Yes	Sometimes optional	Rarely included	Not included	Option
Extended Plan	Yes	Yes	Depending on insurer	Yes	Yes

• Fire is one of the guarantees systematically offered.
• Earthquakes are a major risk in Greece: often offered as a paid additional option.
• Natural disasters such as storms or floods generally require a specific extension.
• Water damage (leaks, bursts) as well as theft/vandalism are only included in high-end plans or as an option.

Company and Price Comparison

Major players like Groupama offer several levels: Eco (essential), Value (intermediate), Plus (high-end), Third-party Rental. The choice influences the nature and extent of the guarantees.

Example of price difference according to plan for an apartment in Athens:

Company	Plan	Annual Premium (€)	Deductible (€)	Indemnity Limit (€)
Groupama	Eco	≈70–120	300	Up to 50,000
Groupama	Plus	≈180–250	150	Up to 150,000
(Other ex.)	Equivalent plan	≈110–200	250–500	Up to 100,000

• Premiums vary depending on location, size, property use, and chosen coverage level.
• Higher deductibles for seismic or flood claims.
• Indemnity limits to be checked carefully: they may be limited for certain exceptional risks.

Customer Service and Claims Handling

International insurers present in Greece, such as Groupama, generally have a good reputation for processing speed and serious post-claims service. However:

• Some local players may offer attractive premiums but provide less personalized follow-up during settlement.

Concrete Examples Where Each Type of Coverage is Advantageous

• Fire coverage: Recommended everywhere; essential if there is frequent presence of old electrical equipment or an unsecured fireplace.
• Earthquake: Essential throughout the country; useful example during an earthquake structurally damaging an old villa in the Peloponnese — without this specific protection, no compensation is paid even if the contract covers standard fire.
• Water damage: Essential if the home is on the ground floor/basement exposed to rising damp/seasonal infiltration.

Key Takeaway

When buying with a bank loan in Greece, expect to have to take out at least insurance covering fires AND earthquakes — but you can freely choose your company for a few years now to negotiate a better price/service.

Practical Tips for Choosing Your Best Coverage

1. Precisely analyze the actual value to insure (replacement/reconstruction value).
2. Always prioritize an “earthquake” extension even outside default red zones.
3. Check specific limits for major risks concerning your exact geographical region — do not settle for the overall announced limit!
4. Carefully examine applicable deductibles by type of claim;
5. Also compare the average announced/proven times for actual payment after declaration;

Also study:

• Local reputation/recent customer reviews
• Contractual flexibility during modification/cancellation
• Possible presence of multilingual assistance

In conclusion, the optimal choice will mainly depend on: the actual level of exposure to localized natural hazards, the precise typology of the property, and of course the ratio between total annual cost/deductibles/limits/services offered.

Owner’s Liability Insurance: Obligations and Issues

Specific Legal Obligations in Greece for Owners

In Greece, taking out home insurance, including owner’s liability insurance, is not mandatory for all owners. This obligation only applies if the property is subject to a mortgage. Outside of this case, insurance remains optional but highly recommended to guard against potential disputes or claims involving third parties.

Role of Liability Coverage

Owner’s liability insurance protects the owner against the financial consequences of material or bodily damage caused to third parties due to the property (e.g., a visitor falling on a poorly maintained staircase, water damage affecting a neighbor). This coverage therefore guarantees the coverage of repairs and/or compensation claimed by victims, thus preventing the owner from personally bearing these sometimes very high costs.

Comparison of Insurance Offers on the Greek Market and Alignment with National Legislation

Offer	Mandatory	Main Guarantees Included	Alignment with Greek Law
Basic Insurance	No	Fires, explosions, glass breakage	Optional except with mortgage
Extended Insurance	No	+ Theft/vandalism*, electrical/water damage	Optional except with mortgage
Liability Insurance (RC included)	Yes/No*	Damage to third parties (material/bodily)	Compliant with bank requirements if credit

*Note: Theft and acts related to secondary residences unoccupied for more than 6 months per year are often excluded.

The annual cost generally varies between €100 and €200, potentially reaching up to €500 depending on the extent of the coverage. The majority of offers include “liability” protection, essential especially during incidents impacting others.

Current Issues for Owners

• Significant financial risk related to uncovered claims (e.g., serious accident involving a third party on the property)
• Increased legal difficulties in the total or partial absence of guarantee
• Personal liability engaged before Greek courts
• Insufficient protection against certain frequent exclusions (unoccupied secondary residences)

Summary List:

• No coverage without appropriate insurance
• Possibility for a third-party victim to directly go after the owner’s assets
• Potential increase in future insurance cost after a major claim

Illustrative Concrete Cases

A tenant slips on a broken step in the common staircase: without adequate liability coverage, the owner must bear all medical costs and potential compensation alone.

A leak from the apartment causes damage to a neighbor: only a policy including this option quickly covers the repairs.

In some old buildings where a short circuit occurs causing material damage to several co-owners: absence or insufficiency of insurance seriously exposes to legal and financial risk.

Voluntary but informed subscription to an insurance policy explicitly including liability insurance therefore remains essential so that any incident involving others does not turn into an economic disaster for the owner.

Coverage of Rental Risks: Protecting Your Investment

The concept of rental risks in Greece covers all threats that can impact the profitability or preservation of a property put up for rent. These risks mainly fall into three categories:

• Risk of non-payment: non-payment of rent or charges by the tenant, potentially leading to a financial loss for the owner.
• Material damage: deterioration caused to the home (fire, vandalism, glass breakage, water damage, malicious acts).
• Liability: bodily or material damage caused to third parties in the context of occupying the property.

Greek insurance companies offer several plans adapted to the needs of landlord owners. The main guarantees included are:

Company	Fire/Explosion	Theft/Vandalism	Water Damage	Glass Breakage	Liability	Loss of Rent
Ethniki Insurance	Yes	Yes	Yes	Yes	Yes	Optional
Interamerican	Yes	Optional	Yes	Optional	Yes	No
Allianz Hellas	Yes	Yes	Optional

Coverage against non-payment remains rare on the Greek market; contracts primarily cover material damage and liability. The “loss of rent” guarantee is generally offered under strict conditions or via a supplementary contract.

Regarding Greek legislation, no specific obligation imposes on private owners an insurance exclusively covering rental risks. However, certain forms remain recommended or even required by some institutional landlords (banks during a mortgage):

• Fire-explosion insurance: mandatory during bank financing.
• Home insurance including liability and material damage: highly recommended but optional for an individual.

Some insurances are therefore optional but strongly advised to secure your real estate investment.

Frequent situations illustrate the crucial importance of good coverage:

• An accidental fire ravages a rented apartment in Athens; without appropriate insurance, the owner bears the restoration costs alone and/or may see their liability engaged towards the neighborhood.
• Water damage damages not only the rented apartment but also the one below; only a multi-risk policy with liability extension covers these frequent incidents in Greek collective housing.
• The tenant leaves without paying several months’ rent or restoring the home; lacking loss of rent/damage guarantee, the annual profitability collapses.

The average costs associated with these policies vary according to several factors:

• Location (Athens > province)
• Insured value of the property
• Profile and history of the tenant
• Level and number of guarantees subscribed

As an indication:

• For a standard apartment in Athens (100 m²), a multi-risk insurance costs between €120 and €300 per year depending on chosen options (theft/vandalism included or not). The possible addition of legal protection/recourse defense significantly increases this cost.
• A secondary residence unoccupied for more than six months is not covered against certain claims such as theft.

To optimize your protection while controlling costs:

1. Encourage competition among Greek insurers specialized in urban residential real estate;
2. Precisely adapt your contract to the actual profile of the property (primary/secondary residence);
3. Favor high deductibles to reduce the annual premium if your cash flow allows absorbing a few small claims;
4. Systematically negotiate with your insurer any useful extension (theft/malicious acts), especially in certain exposed urban areas;
5. Set up rigorous monitoring of the tenant’s prior solvency to structurally limit risks related to non-payment.

Studies conducted by various local brokers show that nearly 40% of real estate disputes today concern either a common defect in contractual management or a total or partial absence of appropriate insurance — thus explaining why it is recommended for foreign and national investors to consult specialists so that their asset strategy takes into account both local tax and security specificities.