Greece: Insurance

Overview

An important aspect of owning a home in Greece is insurance, not only for your home and its contents, but also for your family or friends when visiting the country. If you live in Greece permanently you will require additional insurance. It’s unnecessary to spend half your income insuring yourself against every eventuality, but it’s important to insure against an event that could precipitate a major financial disaster, such as a serious accident or your house being demolished by a storm or earthquake. The cost of being uninsured or under-insured can be astronomical.

As with anything connected with finance, it’s important to shop around when buying insurance, as simply collecting a few brochures from insurance agents or making a few telephone calls could save you a lot of money.

Read insurance contracts carefully and make sure that you understand the terms and the cover provided before signing them. Some insurance companies will do almost anything to avoid paying claims and will use any available legal loophole, therefore it pays to deal only with reputable companies (not that this provides a foolproof guarantee). Policies often contain traps and legal loopholes in the small print and it’s sometimes wise to obtain legal advice before signing a contract.

In all matters regarding insurance, you’re responsible for ensuring that you and your family are legally insured in Greece. Regrettably you cannot insure yourself against being uninsured or sue your insurance agent for giving you bad advice! Bear in mind, that if you wish to make a claim on an insurance policy, you may be required to report an incident to the police within 24 hours (this may also be a legal requirement). The law in Greece may differ considerably from your home country or your previous country of residence, and you should never assume that it’s the same. If you’re uncertain about your rights you should obtain legal advice for anything other than a minor claim. Under EU rules, an insurance company registered in an EU member country can sell its policies in any other EU country.

This article contains information on health insurance (state and private), household insurance, and holiday and travel insurance.

Health Insurance

If you’re visiting, living or working in Greece, it’s extremely risky not to have health insurance for your family, because if you’re uninsured or under-insured you could be faced with some very high medical bills. When deciding on the type and extent of health insurance, make sure that it covers all your family’s present and future health requirements before you receive a large bill. A health insurance policy should cover you for all essential health care whatever the reason, including accidents, e.g. sports accidents, and injuries, whether they occur in your home, at your place of work or when travelling. Don’t take anything for granted, but check in advance.

If you’re planning to take up residence in Greece and will be contributing to Greek social security, you and your family will be entitled to subsidised or (in certain cases) free medical and dental treatment. The Greek national health system is operated by the Idrima Kinonikon Asfalisseon (IKA). When you start work or retire to Greece you must obtain a medical booklet (iatrico vivliario) from your local IKA office, which must be presented each time you visit a doctor or hospital. Doctor and hospital treatment within the Greek system is free, but you will be charged 25 per cent of the cost of prescriptions (pensioners pay 10 per cent).

Most foreign residents also subscribe to a complementary health insurance fund that pays the portion of medical bills that isn’t paid by social security. Residents who don’t contribute to social security should have private health insurance, which is mandatory for non-EU residents when applying for a visa or residence permit. Note that some foreign insurance companies don’t provide sufficient cover to satisfy Greek regulations, therefore you should check the minimum cover necessary with a Greek consulate in your country of residence.

If you live in a remote area of Greece that isn’t covered by a local IKA office, you’ll have to pay the cost of any medical treatment in advance and re-claim it from the nearest IKA office. However, the refund will be only a proportion of the cost (up to around 85 per cent) and you will be responsible for the balance. If you receive treatment under these circumstances, it’s necessary to obtain receipts and documentation in order to make a claim.

Visitors

Visitors spending short periods in Greece, e.g. up to a month, should have a travel health insurance policy (see below), particularly if they aren’t covered by an international health policy. If you plan to spend up to six months in Greece you should either take out a travel policy, a special long-stay policy or an international health policy, which should cover you in your home country and when travelling in other countries. Note that premiums vary considerably and it’s important to shop around. Most international health policies include repatriation or evacuation (these may be optional), which may also include shipment (by air) of the body of a person who has died abroad to his home country for burial. Note that an international policy also allows you to choose to have non-urgent medical treatment in the country of your choice.

Most international insurance companies offer health policies for different areas, e.g. Europe, world-wide excluding North America, and world-wide including North America. Most companies offer different levels of cover, for example, basic, standard, comprehensive and prestige levels of cover. There’s always an annual limit on the total annual medical costs, which should be at least €300,000 (although many provide cover of up to €1.2 million), and some companies also limit the fees for specific treatment or care, such as specialists’ fees, operations and hospital accommodation. A medical examination isn’t usually required for international health policies, although pre-existing health problems are excluded for a period, e.g. one or two years.

Claims are usually settled in major currencies and large claims are usually settled directly by insurance companies (although your choice of hospitals may be limited). Always check whether an insurance company will settle large medical bills directly, because if you’re required to pay bills and claim reimbursement from an insurance company, it can take several months before you receive your money (some companies are slow to pay). It isn’t usually necessary to translate bills into English or another language, although you should check a company’s policy. Most international health insurance companies provide emergency telephone assistance.

The cost of international health insurance varies considerably depending on your age and the extent of cover. Note that with most international insurance policies, you must enrol before you reach a certain age, e.g. between 60 and 80, to be guaranteed continuous cover in your old age. Premiums can sometimes be paid monthly, quarterly or annually, although some companies insist on payment annually in advance. When comparing policies, carefully check the extent of cover and exactly what is included and excluded from a policy (often this is indicated only in the very small print), in addition to premiums and excess charges.

In some countries, premium increases are limited by law, although this may apply only to residents of the country where a company is registered, and not to overseas policyholders. Although there may be significant differences in premiums, generally you get what you pay for and can tailor premiums to your requirements. The most important questions to ask yourself are: does the policy provide the cover required and is it good value for money? If you’re in good health and are able to pay for your own out-patient treatment, such as visits to your family doctor and prescriptions, then the best value may be a policy covering only specialist and hospital treatment.

Residents

If you contribute to Greek social security, you and your family are entitled to free or subsidised medical and dental treatment. Benefits include general and specialist care, hospitalisation, laboratory services, discounted drugs and medicines, basic dental care, maternity care, appliances and transportation (four-fifths of the cost is paid by IKA). The vast majority of the Greek population is covered by the Idrima Kinonikon Asfalisseon (IKA), Greece’s public health scheme, including retired EEA residents (with a residence permit) receiving a state pension. If you aren’t entitled to public health benefits through payment of Greek social security or being in receipt of a state pension from another EU country, you must usually have private health insurance and must present proof of your insurance when applying for your residence permit. If you’re an EU national of retirement age, who isn’t in receipt of a pension, you may be entitled to public health benefits if you can show that you cannot afford private health insurance.

Anyone who has paid regular social security contributions in another EU country for two full years prior to coming to Greece is entitled to public health cover for a limited period from the date of their last contribution. Social security form E-106 or the European Health Card (EHC) must be obtained from the social security authorities in your home country and be presented to the local provincial office of IKA in Greece. Similarly, pensioners and those in receipt of invalidity benefits must obtain form E-121 or the EHC from their home country’s social security administration. Retirees living in Greece and receiving a state pension from another EU country are entitled to free state health benefits.

You will be registered as a member of IKA and given a social security card, a list of local medical practitioners and hospitals, and general information about services and charges. If you’re receiving an invalidity pension or other social security benefits on the grounds of ill health, you should establish exactly how living in Greece will affect those benefits. In some countries there are reciprocal agreements regarding invalidity rights, but you must confirm that they apply to you. Citizens of EU countries can make payments in their home country entitling them to use public health services in Greece and other EU countries.

Further information about Greek social security can be obtained from IKA (520-055 564, www.ika.gr.en/english).

Private Health Insurance

If you aren’t covered by Greek social security, you should take out private health insurance. It’s advantageous to be insured with a company that will pay large medical bills directly. Most private health insurance policies don’t pay family doctors’ fees or pay for medication that isn’t provided in a hospital, or there’s an ‘excess’ payment that often exceeds the cost of treatment. Most will, however, pay for 100 per cent of specialists’ fees and hospital treatment in the best hospitals.

Generally, the higher the premium, the more choice you have regarding doctors, specialists and hospitals. You should avoid a company that reserves the right to cancel a policy when you reach a certain age, e.g. 65 or 70, or which increases premiums sharply as you get older, as trying to take out a new policy at the age of 65 or older at a reasonable premium is difficult. If you already have private health insurance in another country, you may be able to extend it to cover you in Greece.

Private health insurance is popular among the Greeks and there are numerous national companies offering policies, including Alico AIGlife (www.alico.gr), Ethniki Asfalistiki (www.ethniki-asfalistiki.gr), Generali (www.generali.gr) and La Vie Assurance (www.iatriko.gr). Foreign private health insurance companies with policies covering Greece include AXA PPP Healthcare (www.axappphealthcare.com), BUPA International (www.bupa-intl.com), Exeter Friendly Society (www.exeterfriendly.co.uk) and International Health Insurance (www.ihi.com). Note that almost all hospitals and clinics included under foreign private health insurance schemes are situated in Athens or Thessaloniki.

Changing Employers or Insurance Companies

When changing employers or leaving Greece, you should ensure that you have continuous health insurance. If you and your family are covered by a company health plan, your insurance will probably cease after your last day of employment. If you’re planning to change your health insurance company, you should ensure that important benefits aren’t lost, e.g. existing medical conditions won’t usually be covered by a new insurer. When changing medical insurance companies, you should inform your old company if you have any outstanding bills for which they’re liable.

Reciprocal Health Agreements

If you’re entitled to social security health benefits in another EU country or in a country with a reciprocal health agreement with Greece, you will receive free or reduced cost medical treatment there. If you live in the EU, you should apply for the European Health Card (EHC) – provided you’re entitled to treatment from your local social security office – at least three weeks before you plan to travel to Greece. An EHC is open-ended and valid for life. However, you must continue to make social security contributions in the country where it was issued. It covers emergency hospital treatment but doesn’t include prescribed medicines, special examinations, X-rays, laboratory tests, physiotherapy or dental treatment. If you use the EHC in Greece, you must sometimes pay in advance and apply for a reimbursement from Greek social security (instructions are provided with the card), which can take months.

Note, however, that you can still receive a large bill from a Greek hospital, as your local health authority assumes only a percentage of the cost!

Greece has reciprocal social security agreements with EU member states and Switzerland, Argentina, Brazil, Egypt, Libya, New Zealand, Uruguay, the US and Venezuela. Note, however, that the US doesn’t have a reciprocal health agreement with Greece and therefore American students and other Americans who aren’t covered by Greek social security must have private health insurance in Greece. British visitors or Britons planning to live in Greece can obtain information about reciprocal health treatment from the Department of Social Security, Pensions and Overseas Benefits, Newcastle-upon-Tyne, NE98 1BA, UK (0191-218 7777, www.dwp.gov.uk).

Household Insurance

Many foreign property owners don’t insure their homes in Greece with occasional disastrous consequences. Comprehensive household insurance in Greece is essential and should include the building, its contents and third party liability. These are usually contained in a multi-risk household insurance policy. Policies are offered by both local and international insurance companies, whose policies are similar, although foreign companies tend to charge higher premiums.

Building

Although it isn’t compulsory, it’s wise to take out property insurance that covers damage to a building due to fire, smoke, water, explosion, storm, freezing, snow, theft, vandalism, malicious damage, acts of terrorism, impact, broken windows and other natural catastrophes (such as falling trees). Insurance should include glass, external buildings, aerials and satellite dishes, gardens and garden ornaments. Bear in mind that most of Greece lies in an earthquake zone (most buildings on the island of Kefallonia were destroyed in an earthquake in 1953 and many in Athens were ruined in a 1999 earthquake), therefore you should ensure that damage caused by earthquakes is included.

Cover for earthquakes, lightning damage and subsidence is usually included in a standard policy nowadays, but you should check exactly what’s excluded and what it will cost to include extra risks. Policies for building insurance in areas with a high risk of earthquakes are likely to be considerably more expensive – building insurance premiums in Athens tripled after the 1999 earthquake.

Note that if a claim is the result of a defect in design or construction, e.g. the roof is too heavy and collapses, the insurance company won’t pay up (another reason why you should have a survey before buying!).

Property insurance is based on the cost of rebuilding your home and should be increased each year in line with inflation. Make sure that you insure your property for the true cost of rebuilding. It’s important to have insurance for storm damage, which can be severe in some areas. If floods are one of your concerns (flash floods aren’t uncommon), make sure that you’re covered for water coming in from ground level, not just for water seeping in through the roof. Always read the small print of contracts. If you own a home in an area that has been hit by a succession of natural disasters (such as floods and/or earthquakes), your insurance premiums may be increased dramatically or your policy may even be cancelled.

Contents

Contents are usually insured for the same risks as a building (see above) and are usually insured for their replacement value (new for old), with a reduction for wear and tear for clothes and linen. Valuable objects are covered for their actual declared and authenticated value. Most policies include automatic indexation of the insured sum in line with inflation. Contents insurance may include accidental damage to sanitary installations, theft, money, replacement of locks following damage or loss of keys, frozen food, alternative accommodation cover, and property belonging to third parties stored in your home. Some items, however, are usually optional, including credit cards, frozen foods, emergency assistance (plumber, glazier, electrician, etc.), redecoration, garaged cars, replacement pipes, loss of rent, and the cost of travel to Greece for holiday homeowners. Many policies include personal third party or legal liability, e.g. up to €300,000, although this may be an option.

Items of high value must usually be itemised and photographs and documentation (e.g. a valuation) should be provided. Some companies recommend or insist on a video film of belongings. When claiming for contents, if possible you should produce the original bills (always keep bills for expensive items) and should bear in mind that replacing imported items may be much more expensive if you need to buy them locally. Note that contents policies usually contain security clauses and if you don’t adhere to them a claim won’t be considered. If you’re planning to let a property, you may be required to inform your insurer.

A building must be secure with good locks and many companies offer a discount if properties have steel reinforced doors, high security locks and alarms (particularly alarms connected to a monitoring station). An insurance company may send someone to inspect your property and advise on security measures. Policies pay out for theft only when there are signs of forcible entry and you aren’t usually covered for thefts by a guest or tenant (but you may be covered for thefts by domestic personnel). All-risks policies offering a world-wide extension to a household policy covering jewellery, cameras and other items aren’t usually available from Greek companies, but are available from a number of foreign companies.

Community Properties

If you own a property that’s part of a community development, building insurance is included in your service charges, although you should check exactly what’s covered. You must, however, still be insured for third party risks in the event that you cause damage to neighbouring apartments or buildings, e.g. through a flood or fire.

Holiday Homes

Premiums are generally higher for holiday homes because of their high vulnerability (particularly to burglaries) and are often based on the number of days a year a property is inhabited and the interval between periods of occupancy. Cover for theft, storm, flood and malicious damage may be suspended when a property is left empty for an extended period. Note that you’re required to turn off the water supply at the mains when vacating a building for more than 72 hours. It’s possible to negotiate cover for periods of absence for a hefty surcharge, although valuable items are usually excluded. If you’re absent from your property for long periods, e.g. more than 60 days a year, you may also be required to pay an excess on a claim arising from an occurrence that takes place during your absence (and theft may be excluded). You should read all small print in policies.

Where applicable, it’s important to ensure that a policy specifies a holiday home and not a principal home. In areas with a high risk of theft, e.g. major cities and most resort areas, an insurance company may insist that you fit extra locks, e.g. two locks on external doors, including a mortise deadlock, internal locking shutters and security bars or metal grilles on windows. A policy may specify that all forms of protection on doors must be used whenever a property is unoccupied, and that all other forms, e.g. shutters, must also be used when a property is left empty for more than a few days. Some companies may not insure holiday homes in high risk areas.

It’s unwise to leave valuable or irreplaceable items in a holiday home or a home that will be vacant for long periods. Note that some insurance companies will do their utmost to find a loophole which makes you negligent and relieves them of their liability. Always check that the details listed on a policy are correct, otherwise your policy could be void.

Insuring Abroad

It’s possible and legal to take out building and contents insurance in another country for a property in Greece (some foreign insurance companies offer special policies for holiday homeowners), although you must ensure that a policy is valid under European Union (EU) law. The advantage is that you will have a policy you can understand and will be able to handle claims in your own language. This may seem like a good option for a holiday home in Greece, although it’s usually more expensive than insuring with a local company and can lead to conflicts when the building is insured with a local company and the contents with a foreign company, e.g. in some countries, door locks are part of the contents and in others they constitute part of the building. Most experts advise that you insure a Greek property (building and contents) with a local insurance company through a local agent.

Rented Property

Your landlord will usually insist that you have third party liability insurance. A lease requires you to insure against `tenant’s risks’, including damage you may make to the rental property and to other properties if you live in an apartment, e.g. due to flood, fire or explosion. You can choose your own insurance company and aren’t required to use one recommended by your landlord.

Premiums

Premiums are usually calculated on the size of the property, either the habitable area in square metres or the number of rooms, rather than its value. As a rough guide, building insurance costs around €20 per €10,000 of value insured, e.g. a property valued at €100,000 will cost around €200 a year to insure. Contents insurance costs from around €35 per €5,000 of value insured (e.g. a premium of €140 for contents valued at €20,000) and may be higher for a detached villa than an apartment. Detached, older and more remote properties often cost more to insure than apartments and new properties. If you have an index-linked policy, cover is increased each year in line with inflation.

Claims

If you wish to make a claim, you must usually inform your insurance company in writing (by registered letter) within two to five days of an incident or 24 hours in the case of theft. Thefts should also be reported to the police within 24 hours, as the police statement (of which you need a copy for your insurance company) usually constitutes irrefutable evidence of your claim. Check whether you’re covered for damage or thefts that occur while you’re away from a property and are therefore unable to inform your insurance company immediately.

Take care you don’t under-insure your house contents and that you periodically reassess their value and adjust your insurance premium accordingly. You can arrange to have your cover automatically increased annually by a fixed percentage or amount by your insurance company. If you make a claim and the assessor discovers that you’re under-insured, the amount of the claim will be reduced by the percentage you’re under-insured. For example, if you’re 50 per cent under-insured, your claim for €15,000 will be reduced by half to €7,500. You must usually pay an excess for each claim.

Holiday & Travel Insurance

Holiday and travel insurance is recommended for all who don’t wish to risk having their holiday or travel ruined by financial problems. As you’re probably aware, anything can and often does go wrong with a holiday, sometimes before you even get started (particularly if you don’t have insurance). The following information applies equally to both residents and non-residents, whether they’re travelling to or from Greece or within either country. No-one should visit Greece without travel and health insurance!

Travel insurance is available from many sources, including travel agents, insurance companies and brokers, banks, automobile clubs and transport companies (airline, rail and bus). Package holiday companies and tour operators also offer insurance policies, some of which are compulsory, too expensive and don’t provide adequate cover. You can also buy 24-hour accident and flight insurance at major airports, although it’s expensive and doesn’t offer the best cover. Before taking out travel insurance, carefully consider the range and level of cover you require and compare policies. Short-term holiday and travel insurance policies may include: cover for holiday cancellation or interruption; missed flights; departure delay at both the start and end of a holiday (a common occurrence); delayed, lost or damaged baggage; personal effects and money; medical expenses and accidents (including evacuation home); flight insurance; personal liability and legal expenses and default or bankruptcy insurance, e.g. a tour operator or airline going bust.

Health Cover

Medical expenses are an important aspect of travel insurance and you shouldn’t rely on insurance provided by reciprocal health arrangements, charge and credit card companies, household policies or private medical insurance (unless it’s an international policy), none of which may provide adequate cover. The minimum medical insurance recommended by experts is €300,000 in Greece and the rest of Europe, and €1.2 million for the rest of the world. If applicable, check whether pregnancy related claims are covered and whether there are any restrictions for those over a certain age, e.g. 65, as travel insurance is becoming increasingly more expensive for those aged over 65. You may prefer a policy that pays a hospital directly, rather than having to pay yourself and make a claim later. If you do need to make a claim, then you must keep your medical receipts.

Always check any exclusion clauses in contracts by obtaining a copy of the full policy document, as not all relevant information will be included in an insurance leaflet. High risk sports such as off-road trekking, para-sailing, scuba-diving, motorcycling and other ‘risky’ pursuits should be specifically covered and listed in a policy if applicable (there’s usually an additional premium), as these pursuits are usually excluded from general cover. Special winter sports policies are available and are more expensive than normal holiday insurance (‘dangerous’ sports are excluded from most standard policies). Third party liability cover should be €2.4 million in North America and €1.2 million in the rest of the world. Note that this doesn’t cover you when you’re using a car or other mechanically propelled vehicle.

Cost

The cost of travel insurance varies considerably, depending on where you buy it, how long you intend to stay abroad and your age. Generally, the longer the period covered, the cheaper the daily cost, although the maximum period covered is usually limited, e.g. six months. With some policies an excess (deductible) must be paid for each claim. As a rough guide, travel insurance for Greece (and most other European countries) costs from around €40 for one week, €60 for two weeks and €100 for a month for a family of four (two adults and two children under 16).

Annual Policies

For people who travel abroad frequently, whether on business or pleasure, an annual travel policy usually provides the best value, but check carefully to find out exactly what it includes. Many insurance companies offer annual travel policies for a premium of around €150 for an individual (the equivalent of around three months insurance with a standard travel insurance policy), which are excellent value for frequent travellers. Some insurance companies also offer an ‘emergency travel policy’ for holiday homeowners who need to travel abroad at short notice to inspect a property, e.g. after a severe storm or robbery.

The cost of an annual policy may depend on the area covered, e.g. Europe, world-wide (excluding North America) and world-wide (including North America), although it doesn’t usually cover travel within your country of residence. There’s also a limit on the number of trips a year and the duration of each trip, e.g. 90 or 120 days (the longer the better). An annual policy is usually a good choice for owners of a holiday home in Greece who travel there frequently for relatively short periods. However, check exactly what’s covered (or omitted), as an annual policy may not provide adequate cover.

© Survival Books Limited 2005

“Buying a Home in Greece” 3rd Edition, Joanna Styles.

Reproduced with the permission of Survival Books Limited.

Further information on buying a home in Greece can be found in “Buying a Home in Greece” 3rd edition, by Joanna Styles.

For extensive information about buying a property in Greece, you can purchase this book at www.survivalbooks.net