Purpose and deadlines of insurance.

The purpose of insurance is to reduce the risks that collateral may be exposed to because of unexpected and unforeseeable events (insurance risks).

Loan agreements stipulate that loan collateral must be insured during the entire term of the loan and the borrower is responsible for submitting the insurance contract.

Unless otherwise stipulated in the loan agreement, the primary insurance contract must be entered into as soon as possible (but no later than within three business days) after the pledge contract is entered into, and a renewable insurance contract at least 14 days before the expiry of the existing insurance contract. Property to be built is subject to insurance upon completion, unless otherwise agreed in the insurance contract.

Please e-mail the insurance contracts to kindlustused@luminor.ee or send them by post to Liivalaia 45, 10145 Tallinn. You can also bring the insurance contract to our branch.

Accepted insurers

Luminor accepts insurance contracts in the Baltic States that have been entered into with the following insurance companies or their branches. 

  • AB “Lietuvos draudimas” (incl. PZU Kindlustus, which is the Estonian branch of AB “Lietuvos draudimas”)
  • If P&C Insurance AS
  • ERGO Insurance SE
  • Seesam Insurance AS
  • ADB Gjensidige
  • Compensa Vienna Insurance Group ADB
  • AAS BTA Baltic Insurance Company
  • Swedbank P&C Insurance AS
  • Salva Kindlustuse AS

General provisions

  • Policyholder means the client or the representative of the client (not Luminor).
  • Insured person means the client: the borrower or the pledgor of the collateral.
  • Beneficiary is always Luminor Bank AS (reg. no. 11315936).
  • The insured property is also determined on the basis of the address, which must be presented in the same way as it appears in the Land Register.
  • Maximum excess is 500 euros. A larger amount must be accepted separately by the bank (the loan administrator must be informed of the relevant request).
  • If several objects have been noted in the loan agreement as collateral, these objects must be separately determined in the insurance contract as well.
  • Only effective insurance contracts are accepted. If Luminor finds out that the insurance premium has not been paid by the due date and the policy will be terminated, it has the right to enter into an insurance contract itself or claim payment of a contractual penalty (as stipulated in the loan agreement).

Objects [items] to be insured

The property used as collateral pursuant to the loan agreement must be unambiguously determined in the insurance contract. The following objects are subject to insurance according to the requirements presented below:

  1. private houses, apartments;
  2. other structures, e.g. warehouses, terraces, hangars, barns, saunas, summer cottages, garages (separate buildings, underground buildings);
  3. private houses under construction (if the walls are up and the roof, doors and windows have been installed);
  4. private houses, apartments to be renovated.
The requirements do not apply to land ownership (incl. parking spaces) and no insurance is required in this case.

Minimum insurance cover

Object to be insured Apartments, private houses (1),
other structures (2),
private houses, apartments under renovation (4)
Private houses under construction(no permit for use) (3) Plot of land, car parks
Minimum insurance cover Minimal risks:
natural disasters,
water damage (e.g. leaks, faults in utility systems),
damage caused by third parties (e.g. theft, vandalism, robbery)
Minimal risks:
natural disasters,
damage caused by third parties (e.g. theft, vandalism, robbery)
Insurance is not required.
1A house under construction requires planning permission.

Sum insured

Objects [items] to be insured are generally insured for their reinstatement/renewal/replacement value, i.e. all insured objects must be insured to the extent of their full reinstatement value.

Underinsurance (the sum insured is smaller than the full reinstatement value) can be identified on the basis of the terms and conditions offered by the insurer and is not acceptable.

If the sum insured is indicated in the insurance contract, the bank will accept the amount of 1000 EUR/m2 as the minimal reinstatement/renewal/replacement value.
If a request for insuring the property for a value smaller than the actual value, market value, underinsurance or total value (can be identified in the insurance contract) is submitted for any reason, this must be agreed separately with the bank (the loan administrator must be informed of the respective request).