Lithuania Launches Home Insurance Covering War-Related Damages

Lithuanian residents can now obtain home insurance that covers damages resulting from war, military operations, terror attacks, and political conflicts. This expanded coverage, available from "Lietuvos draudimas" since June 1, aims to provide a safety net against a range of modern security threats.

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Each event would be assessed individually according to specific circumstances and insurance conditions. As in international insurance practice, certain exclusions apply. For example, insurance does not cover war between two of the so-called Big Five states (USA, UK, France, Russia, and China), as well as damage related to nuclear, chemical, or biological weapons and cyberattacks.

The new policies cover damage to insured homes and their contents, provided they are included in the insurance contract. The coverage is automatically applied to both new and existing policies. However, the insurance is not absolute. There are specific exclusions, such as damage from wars involving the five permanent members of the UN Security Council (the United States, the United Kingdom, France, Russia, and China), as well as damage related to nuclear, chemical, or biological weapons and cyberattacks.

"Swedbank," a partner of "Lietuvos draudimas," clarified that each event would be assessed individually based on specific circumstances and policy terms, aligning with international insurance practices. The bank stated that hypothetical geopolitical scenarios, such as a conflict involving NATO member states defending Lithuania, cannot be pre-emptively classified as covered or uncovered events. The assessment depends on the factual circumstances and policy conditions at the time of the event.

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It is important to emphasize that each event would be analyzed individually, taking into account the factual circumstances and insurance conditions. For this reason, we do not evaluate hypothetical geopolitical scenarios and cannot classify them as insured or uninsured events.

The maximum payout for such war-related claims under the new policy is capped at 250,000 euros per apartment for the entire duration of the coverage. While the inclusion of war-related risks will not directly increase the cost of existing or newly issued policies, other factors like inflation, changes in risk assessment, and a newly implemented security contribution fee may influence overall insurance premiums. The final price of home insurance is determined individually, considering the property, chosen coverage, and other risk assessment criteria.

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The coverage is not absolute.