Greece considers mandatory building insurance under planned property law reforms

Greece is considering making insurance for apartment building common areas mandatory as part of a broader overhaul of property legislation, following the recent collapse of an apartment building in the Petralona district of Athens.

The proposal is among a series of measures being examined by the Justice Ministry for inclusion in a new property code expected to be introduced in the coming months.

Mandatory insurance under consideration

According to sources, the proposed insurance requirement would cover common areas and shared facilities in residential buildings, including entrances, stairwells, terraces, boiler rooms and elevators.

The insurance would provide protection against risks such as fire, earthquakes and floods, while additional coverage for subsidence, landslides and ground collapse could also be included, particularly in light of incidents such as the Petralona building collapse.

Officials stressed that mandatory insurance remains under discussion and that no final decision has yet been made.

Changes to co-ownership rules

The planned legislation also aims to address long-standing issues related to apartment building co-ownership by reducing disputes among property owners and streamlining decision-making.

Under the proposal, the majority required at owners' general assemblies for decisions on maintenance, repairs, energy-efficiency upgrades and the allocation of common expenses would be lowered to 51%.

The ministry says the measure is intended to facilitate necessary works and reduce delays caused by higher voting thresholds.

Property development measures

The draft property code is also expected to include measures designed to simplify the development and transfer of real estate.

Among the proposals under consideration are allowing the division or merger of horizontally owned properties, such as entire apartment floors, even where existing building regulations prohibit such changes.

Additional measures would facilitate the development of jointly owned or indivisible plots for construction and provide legal mechanisms to enable the sale, transfer or inheritance of thousands of properties that currently face unresolved ownership issues.

The proposals, some of which have been submitted by the Panhellenic Federation of Property Owners (POMIDA), are expected to be debated as the government finalizes the new property code.

Source:Kathimerini