BTA begins insuring private individuals’ property against military incidents

In response to geopolitical uncertainty and several incidents in which foreign drones have entered Latvian airspace, BTA Baltic Insurance Company AAS (hereinafter – BTA) is launching new insurance cover against military incidents for private property. According to Oskars Zvejnieks, Director of BTA’s Underwriting Department, this is a new property insurance risk that will cover losses caused by military drones and missiles, their debris, projectiles or blast waves. 

The airspace threat alerts received this year via mobile networks, caused by unauthorised foreign drones, clearly demonstrated that the consequences of military conflicts can also reach Latvia, whilst insurers must adapt by developing solutions to protect the public financially against new risks. 

“Insurance has always evolved alongside society and the risks it faces. For most people, their home is one of their most valuable assets, so it is only logical to review the types of events against which it can be insured. Just as we began offering cover against cyber risks to private individuals last year, we are now taking the next step by providing the opportunity to insure one’s property against the consequences of certain military incidents, thereby protecting oneself from the financial consequences, should a drone, missile, their debris or a shockwave cause damage to property as a result of a military conflict taking place outside Latvia,” explains Oskars Zvejnieks, Director of BTA’s Underwriting Department and insurance expert. 

BTA’s military incident insurance cover will apply throughout the territory of Latvia and will include damage to property caused by missiles, projectiles, as well as drones or their debris, including damage to building façades, glazing, movable property and fences. Compensation may also be claimed in cases where damage has been caused by a shockwave, for example, if a drone has crashed in a neighbouring area and the resulting shockwave has damaged a fence, a building’s glazing, roof or façade. 

Meanwhile, in cases where a military aircraft has damaged the façade and roof of a block of flats, compensation for damage to the common property will be paid in proportion to the area of the insured flat in relation to the total area of the building. 

Existing and new customers will be able to purchase cover for the risk of military incidents as an additional risk under BTA’s property insurance policy, and this cover will apply if a military conflict, the consequences of which have caused damage to the insured property, takes place outside Latvia.