Property Insurance in Cyprus
🏡 Basic Information
Property insurance in Cyprus is not legally mandatory,
but it is strongly recommended—especially for apartments under construction, rental properties, or purchases financed by a mortgage.
If the property is financed by a bank, insurance is mandatory for the entire duration of the loan.
In other cases, it is up to the owner to decide which type of insurance to choose and at what coverage level.
1️⃣ Types of Property Insurance
| Insurance Type | Description | Recommended For |
|---|---|---|
| Building Insurance | Covers damage to the structure – walls, roof, electrical systems, installations | All properties |
| Contents Insurance | Covers furnishings, furniture, appliances | Rental or permanently occupied apartments |
| Liability Insurance | Covers damage caused to third parties (e.g. flooding a neighbor’s apartment) | Apartments in residential buildings |
| Rental Protection | Covers loss of rental income and tenant-caused damage | Investment apartments |
| Comprehensive Home Policy | All-in-one package (building + contents + liability) | Family houses and villas |
💡 Most insurers offer packages that can be customized based on the value of the property and its contents.
2️⃣ Main Insured Risks
Standard property insurance in Cyprus typically covers:
✅ Fire, smoke, explosion
✅ Storm, strong winds, lightning
✅ Flooding, water leakage from pipes
✅ Theft, burglary, vandalism
✅ Glass surfaces, windows, doors
✅ Falling objects, vehicle impact
✅ Temporary accommodation costs after damage
💡 Extended policies may also cover earthquakes, hurricane-strength winds, or aircraft impact (rare, but possible in southern areas).
3️⃣ Insurance During Construction (Construction Phase)
If the property is still under construction, insurance responsibility lies with the developer.
Developers usually hold:
- Contractor’s All-Risk Insurance – covers construction works, machinery, and worker injuries,
- Public Liability Insurance – covers damage caused to third parties during construction.
The buyer takes out their own insurance after handover of the apartment or house.
4️⃣ Insurance Costs
Prices vary depending on value and location, but indicative annual costs are:
| Property Type | Insured Value | Annual Premium |
|---|---|---|
| 1-bedroom apartment | €150,000 | €100 – €150 |
| 2–3 bedroom apartment | €250,000 | €150 – €250 |
| House / villa | €400,000 | €250 – €400 |
| Contents surcharge | +€50 – €100 | Depending on contents value |
💡 Most policies are paid annually or semi-annually,
with an option for automatic renewal.
5️⃣ Well-Known Insurance Companies in Cyprus
- Eurolife
- Atlantic Insurance
- Universal Life
- Pancyprian Insurance
- Prime Insurance
- Trust Insurance Cyprus
- Allianz Cyprus
💡 All offer English documentation, online applications, and payment by card or bank transfer.
Insurance can also be arranged through a lawyer or real estate agency.
6️⃣ Insurance for Rental Properties
If the property is rented (long-term or short-term – Airbnb, Booking),
standard insurance may not cover tenant-caused damage.
It is recommended to add:
- Tenant Damage Cover – covers intentional tenant damage,
- Loss of Rent – compensates for rental income loss during repairs,
- Public Liability – covers injuries to guests or visitors.
💡 Airbnb hosts must have insurance that explicitly allows short-term rentals.
7️⃣ Mortgage and Insurance
When purchasing with a mortgage, insurance is mandatory.
Banks usually require:
- Building Insurance with coverage at least equal to the loan amount,
- The policy assigned (noted) in favor of the bank,
- Annual renewal with confirmation provided to the bank.
8️⃣ How to Arrange Property Insurance
- Estimate the real value of the property (excluding land).
- Choose an insurer and package based on risks.
- Complete the application (address, size, contents value).
- Insurance starts on the signing date or as agreed.
- Payment can be made online, by card, or by bank transfer.
- Claims are reported by phone or online – the insurer appoints a loss adjuster.
