Building Insurance Unpopular in Serbia as Residents Prefer Disputes Over Premiums

Insurance companies in Serbia estimate that only about 5% of common spaces in residential buildings are insured, a figure highlighting a significant gap in property protection. This low rate is largely attributed to a prevalent mindset where residents often perceive shared areas as belonging to 'someone else' rather than themselves.

This lack of ownership perception contributes to a reluctance to pay for insurance premiums. The situation is further complicated by the fact that securing insurance for common spaces typically requires a decision from two-thirds of the residents. As any damage does not affect each owner equally, achieving such consensus proves difficult.

Instead of opting for insurance, residents frequently engage in disputes when funds are needed for repairs. These repair costs, often arising from issues like storms, fires, or installation failures, can ultimately be much higher than the monthly payments for a risk insurance policy. While amendments to the Law on Housing and Building Maintenance were anticipated to introduce mandatory liability insurance for damages caused to third parties from common building parts, these changes have not yet been adopted.