In accordance to the Compulsory Insurance Law of Azerbaijan Republic, your car and other transportation means holding a unique state number shall be insured and it is mandatory for everyone. Implementation of the mentioned provision of law is very easy and widespread now with the help of radar technology used by law enforcement authorities. But not all the provisions of the mentioned law were able to be enforced. Thus, in accordance with the same law the real estate insurance is also mandatory in Azerbaijan. In majority of countries obtaining such type of insurance is not compulsory. But for the purpose of protection of health and life of its citizens and residents, it is an obligation for real estate owners in Azerbaijan.One would think, this obligation may increase costs and diminish life qualities of residents. But, good news is it is a very affordable type of insurance. Thus, obtaining such kind of insurance is even cheaper than insurance for your transportation. The prices are as following:

 

LOCATION INSURANCE

VALUE (AZN)

MINIMUM INSURED

DAMAGE VALUE

(AZN)

YEARLY

INSURANCE

FEES

(AZN)

Baku 25 000 250 50
Ganja, Sumgait and Nakhchivan 20 000 200 40
Other settlements 15 000 150 30

Such insurance protects your property from events such as: fire; blowout; short circuit in electrical wirings; explosion; flooding; damage by falling, throwing, hitting, splashing, discharging of any objects or its parts; damage by any surface vehicle; natural Disasters; damage by third parties.

Application of the provisions of the mentioned law on compulsory real estate insurance was problematic in practice because tools for its enforcement were poor. Currently government of Azerbaijan gives a special consideration for this case. Thus, respective government authority issues notifications to citizens and residents of Azerbaijan who own real estates on acquiring real estate insurance within 20 (twenty day) from the receipt of such paper.  Citizens and residents that do not comply with the mentioned are subject to administrative penalty.

We believe such a law is comforting for real estate owners, especially for foreigners who own a real estate in Azerbaijan. Thus, for only 50 (fifty) AZN yearly insurance payment they will cover the whole or part of their damage in the case of any of the abovementioned events.

If you need any help to acquire/insure a property in Azerbaijan, Baku Attorneys & Consultants as a law firm in Azerbaijan will guide you through all stages of property acquisition/insurance and legal documentation. We will assist in the best way in selecting, negotiating purchasing and registering the land plot or any other type of real estate to achieve consummation of the deal to your satisfaction.

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