How to insure property in Albania

Owning property in Albania brings exciting opportunities, whether for personal use, retirement, or investment. But safeguarding that investment requires proper property insurance. Many foreign buyers ask how property insurance works in Albania and what protections are available.

Here’s a practical guide to insuring property in Albania.

Is Property Insurance Mandatory in Albania?

In Albania, property insurance is generally optional for private homeowners unless:

• The property is financed with a mortgage (in which case, the lender may require insurance)

• The property is used commercially, where certain liability coverage may apply

Although not legally required, voluntary insurance is strongly recommended to protect against risks such as fire, theft, natural disasters, or liability claims.

What Does Property Insurance Cover?

Property insurance policies in Albania vary depending on the provider, but typically cover:

• Structural damage (from fire, explosion, storm, earthquake, flood)

• Theft or burglary of contents (if included)

• Third-party liability for accidents on the property

• Natural disaster risks (may be included or optional)

Policies may exclude damages caused by poor maintenance, illegal construction, or pre-existing structural issues.

Foreign buyers should review coverage carefully and confirm whether earthquakes and floods are automatically included or require additional premiums.

How to Obtain Property Insurance

The process to insure property in Albania typically involves:

1. Contacting an insurance broker or company licensed in Albania

2. Providing property details, including:

   • Address and location

   • Property type (apartment, house, commercial)

   • Size (square meters)

   • Year of construction

   • Value of building and contents

3. Receiving an insurance quote

4. Reviewing policy terms, limits, and exclusions

5. Signing the policy agreement and paying the premium

Policies are usually renewed annually. Premiums depend on property value, coverage scope, location, and risk factors (e.g., earthquake-prone zones).

Are International Insurance Companies Available?

Some international insurers operate in Albania or offer expatriate-focused coverage for foreign property owners. However, most policies are issued through Albanian-licensed insurance companies, including well-known local and regional brands.

Foreign buyers may prefer working with brokers experienced in handling expat clients to ensure clarity on policy wording, claims procedures, and bilingual documentation.

Important Considerations

• Insurance may be required by Albanian banks for mortgage-financed properties

• Coverage for illegal or unregistered construction may be denied in case of claims

• Policy documents are typically issued in Albanian; certified translations may be useful for foreign owners

• Claims must follow Albanian legal and insurance procedures

Why Insure Property in Albania?

Property insurance provides financial protection against unpredictable risks, including:

• Fire or natural disaster damage

• Water leaks damaging neighboring properties (common in apartment buildings)

• Burglary or vandalism

• Liability claims from visitors or neighbors

Without insurance, the owner bears full financial responsibility for repairs or legal claims.

While property insurance is not legally mandatory for most owners in Albania, it remains an essential safeguard for foreign investors and homeowners. Policies can be tailored to cover structural risks, contents, and liability exposures.