Some insurance customers in Estonia have seen their premiums increase due to the addition of war risk protection to their policies.
What happened
Seesam Insurance has introduced coverage for war-related risks, such as damage caused by drones or missiles, without obtaining consent from its customers. As a result, some customers have experienced significant increases in their premiums, with one customer seeing a 30% rise in their annual payment.
According to Indrek Petter, head of the insurance department at Seesam Insurance, the new coverage is intended to protect homes against explosions caused by stray military drones, missiles, shells, and mines. The monthly premium for this coverage ranges from approximately €1 for smaller apartments to around €3 for an average detached house.
Customers who do not wish to have this coverage must opt out themselves, as the change was introduced by default. Other insurance companies, such as Swedbank and Elama Insurance, also offer compensation for war-related damage, but without charging an additional fee.
The introduction of war risk protection is reportedly a response to the presence of Ukrainian drones in Estonian airspace, which has raised concerns about potential damage. However, the coverage does not apply in the event of a declared state of war in Estonia.
