Financial Services, Insurance, Lithuania, Real Estate

The growth was determined by the increasing number of insured more expensive homesteads.

According to Andrius Gimbickas, Manager of Personal Lines at Lithuanian Insurance, homestead insurance has high growth potential as more and more people renovate and adjust homesteads for recreation. Currently two thirds of homesteads remain uninsured; therefore, growth in this sector is also expected for the next year.

This year Lithuanian Insurance has compensated damages worth EUR 72,000 (LTL 250,000) – EUR 1,700 (LTL 6,000) on average.

In the first half of 2013 the most often misfortune in homesteads are theft and malicious property damage. Although thefts have dropped by one third in the first six months, the average damage remains almost unchanged at EUR 550 (LTL 1900). The record loss due to theft from homestead this year was EUR 7,200 (LTL 25,000).

"The statistics proves that property in houses for recreation is becoming more expensive, people keep expensive electronics and smart gadgets, computers and tablets. It is easy prey for thieves, which is easy to sell. Lawn-mowers and other gardening equipment are also stolen," said Gumbickas.

Damage occurring due to forces of nature has increased by 20%, reaching on average EUR 430 (LTL 1500).

Because homesteads are located in remote aeries and are not constantly inhabited the insurance risk is several times higher than that of constantly inhabited houses. The price is calculated individually having evaluated all factors.

Lithuanian Insurance is non-life insurance market leader in Lithuania with more than five hundred thousand private and business customers. It employs more than one thousand employees and was voted as best company to work for in 2012. Lithuanian Insurance is a member of RSA Insurance group which serves more than 20 million customers in 140 countries.