Shared Property Insurance in Latvia: Call for a Systemic Solution
Insurance of shared parts of apartment buildings remains rare in Latvia, and plans for mandatory cover have not moved forward. An industry representative argues that a systemic solution is needed.
Insurance coverage for the shared parts of apartment buildings in Latvia remains low, and there is currently no progress on introducing mandatory cover. In an opinion piece published by the business daily Dienas Bizness, an insurance industry representative argues that relying solely on residents' good sense is not enough and that a systemic solution is needed. Shared property means the parts of a building owned jointly by all apartment owners, such as the roof, stairwell, basement or heating substation.
Low insurance levels
BALTA, one of the largest insurers in Latvia, said in April that interest in home insurance grows after major disasters. In the first three months of this year, shared property insurance rose by 12%, but from a very low base. Data from the Bank of Latvia, the country's central bank, for 2025 show that on average 53% of privately owned dwellings are insured. In Lithuania the figure exceeds 60%, and in Estonia 70%. In private houses and new apartment projects, about three quarters of properties are insured, while in Soviet-era buildings, including the one destroyed by a gas explosion on Bauskas Street, only about 40% of apartments were covered.
Obstacles and costs
The author names a lack of understanding of shared responsibility among owners, and a weakly functioning mechanism for homeowner communities, as the main problems. In Estonia, rules for apartment owners' associations have been in force for several years, and, according to Estonian participants, they have fostered an owner's mindset. For a medium-sized five-storey building with 30 apartments, insurance with suitable cover and deductible could cost roughly €1–2 per apartment per month. Poorly maintained buildings and those with a higher fire risk, for example with wood heating, may be harder to insure. In addition, only some insurers currently offer shared property policies.
Draft law and a possible solution
The Latvian Insurers Association has already discussed mandatory shared property insurance with the Ministry of Economics, but a draft law prepared in the summer has not advanced since the elections. The author believes it should be put to public consultation. As a possible starting point, he proposes automatic enrolment in a mandatory scheme, with an option to opt out if the building's owners do not want it or cannot agree.
