The law on mandatory home insurance will also include flood coverage. In the initial draft, the government proposed covering only damage caused by earthquakes above magnitude 5, but the bill has now been revised.

The new draft law on mandatory home insurance has expanded the existing scheme—which previously covered only earthquakes—to also include the risk of floods. The change follows a review of the draft and has been made public in recent days.

Under the draft law, every homeowner will be required to sign an annual insurance contract covering structural damage caused by natural disasters. The scheme will be administered by a National Mandatory Insurance Fund, which will collect premiums and pay out compensation.

One of the most debated points is that insurance premiums will not be set by the market, but approved by the Council of Ministers, based on geographic area, risk level, and housing typology.

The draft law also stipulates that compensation payments must be made within a legally defined timeframe, following damage verification and submission of the required documentation.

Another new element is the linkage of insurance to public services: without a valid insurance contract, citizens may face restrictions in accessing cadastral services or registering property.

The draft law remains under discussion and is expected to be reviewed by the Parliament of Albania, with debate anticipated over costs and its impact on households.