PAD insurance (Natural Disaster Insurance Policy) is the only form of mandatory insurance for homes in Romania. It was introduced by Law 260/2008 and significantly updated by Law 115/2023, which set prices and insured sums in RON (not in euros, as they previously were). It is issued exclusively by PAID — the Natural Disaster Insurance Pool, a company authorised by the Financial Supervisory Authority (ASF), and the policy is distributed through partner insurers and authorised brokers, such as troco.ro.
Who is required to take out PAD insurance
The obligation falls on every homeowner in Romania, regardless of whether it is a house or an apartment, a primary residence or a holiday home. If you own multiple homes, you need a separate PAD policy for each address. Vacant or occasionally used homes are also subject to the law.
Construction type — A or B
The law divides homes into two categories, based on building materials:
- Type A — home with a load-bearing structure made of reinforced concrete, metal or wood, or with exterior walls of natural stone, fired brick, or other materials resulting from thermal or chemical treatment. This applies to most apartment buildings and homes built in recent decades. The insured sum is 100,000 RON, and the premium is 130 RON/year.
- Type B — home with exterior walls made of unfired brick (adobe) or any materials not subjected to thermal and/or chemical treatment. The insured sum is 50,000 RON, and the premium is 50 RON/year.
The construction type is determined automatically by the troco.ro calculator based on the structure you select in the form.
What PAD covers and does not cover
PAD strictly covers three natural disasters: earthquake, natural flood and landslide. In addition, indirect damages caused by these events are also covered — for example, a fire or explosion occurring as a result of an earthquake.
PAD does not cover: interior belongings (furniture, appliances, electronics), annexes not structurally connected to the home (garages, sheds, pergolas, fences, pools, solar panels, wind installations), floods caused by reservoir formation or artificial changes to watercourses, foundation settlement, cracks caused by freeze-thaw cycles, damage caused by excavation or utility works, as well as the land surrounding the home.
Additionally, PAID does not issue policies for homes located in construction-prohibited zones or classified in seismic risk class I.
When PAD coverage begins and ends
For a new policy, coverage only begins on the fifth day after the premium is paid. This is an essential detail — if you want to be covered from a specific date, you must purchase the policy at least 5 days in advance. For a renewal, coverage continues without a break from the day immediately following the expiry of the old policy, provided payment has been made.
The policy expires at 24:00 on the last day recorded in the PAD or, prior to that date, at the moment the building loses its residential purpose (for example, it is demolished).
What happens when the home is sold
The PAD policy is never cancelled, not even upon the sale of the home. In this case, the previous owner transfers the PAD to the new owner, who is required to notify the insurer within a maximum of 5 days from the completion of the sale and purchase deed.
Fines for the absence of a PAD policy
According to Law 260/2008, the absence of a valid PAD policy can result in a fine of between 100 and 500 RON, applied by local councils. From 2025, the first effective fines were issued across the country (Pașcani, Corbeanca), and the Local Police and IGSU can directly check the PAID database online. More importantly: in the event of a natural disaster, the Romanian state does not compensate uninsured owners, meaning you risk total uncovered losses, not just the fine itself.
How to buy PAD online at troco.ro
The process takes 3 minutes. You fill in the home and owner details in the form at the top of the page, the system automatically calculates the construction type and price (50 RON or 130 RON), you pay by card (Visa, Mastercard, Apple Pay, Google Pay — secured via Netopia) and receive the policy by email, registered directly in the PAID database. No account is needed and you do not need to visit a branch.
Why adding optional insurance is useful
PAD is a prerequisite: you cannot take out optional insurance without first having a valid PAD. According to Romanian insurance market statistics, over 85% of annual home damages are caused by fire, theft and water damage (burst pipes, neighbours) — risks that PAD does not cover. Optional insurance starts from 50 RON/year and covers interior belongings, liability towards neighbours and accidental breakdowns. On troco.ro you can buy PAD and then immediately optional insurance as well, comparing 20 offers from 12 insurers.
