Home Insurance Against War Risks in Ukraine: Coverage Limits, Payouts, and the Real Cost of Protection
Time for Action analyzed how insurance of residential property against war risks works in Ukraine, what real opportunities it provides to apartment and house owners, and why, despite several years of existence of this instrument, full coverage of the market value of housing is still almost absent. The war has forced the market to change, but these changes remain cautious, selective, and expensive. In practice, most individuals insure housing with limited caps, which are sufficient to compensate for typical damage replacement of windows and doors, repair of balconies, and local restoration of premises. Insurance at full market valueof an apartment or house is the exception rather than the rule. The reason is purely financial: such a service costs approximately from 1% to 1.5% of the value of the property per year. If an apartment is valued at UAH 2 million, the annual insurance premium will amount to UAH 20,000–30,000, which for most households is a significant burden. The CEO of the Association “Insurance Business” Viacheslav Cherniakhovskyi explains the logic behind Ukrainians’ choices as follows:
“In apartment buildings, people usually buy policies with limits, because the probability of complete destruction of an apartment is lower, while minor damage is more common.”
In fact, insurance is used as a tool for quick partial recovery, not as a guarantee of compensation for all lost real estate.
In wartime conditions, insurance companies have significantly tightened risk control. This concerns not only the assessment of a specific property, but also the analysis of risk concentration by addresses and postal codes. Companies avoid situations where a single massive strike could lead to simultaneous multi-million payouts. Additional restrictions often apply to housing located near critical or military infrastructure, as well as regions with a high intensity of attacks. In most cases, war risks are not a standalone insurance product. They are offered as an additional option to a standard property insurance policy that covers fire, natural disasters, or flooding. Only a few companies on the market are ready to insure housing exclusively against war risks. The average surcharge for such coverage for an apartment is UAH 1,000-1,500 per year in addition to a standard policy costing UAH 3,000-4,000.
At the same time, over the past year the situation with payouts has noticeably changed. According to Cherniakhovskyi, there have been more payouts, as the number of attacks on peaceful cities has increased. Insurance often allows compensation to be received faster than through the state program “eVidnovlennia”, where property assessment and transfer of funds can take months, and the amounts do not always cover real restoration costs.
“If a year ago I said that our compatriots treat insurance rather coolly and believe that air defense is the best insurance, then after hundreds of Shaheds started flying at us, this attitude has changed somewhat. Therefore, there have been more payouts, and some companies are already complaining that they want to raise prices,” he notes.
A separate systemic problem remains the almost complete absence of state reinsurance of war risks.
“We proposed a comprehensive program with state reinsurance of part of the risks, but currently there is only partial compensation of insurance premiums in frontline regions, no more than UAH 1 million per year, and the contract is designed for only one year,” Cherniakhovskyi explains.
This significantly limits insurers’ capabilities and directly affects the cost of policies.
The practices of specific companies show how the market is trying to balance demand and risks. At ORANTA Insurance Company, war risks are covered within a limit of UAH 600,000 for apartments and houses, while higher amounts are considered individually. The company clearly separates classic risks and war risks, not assuming obligations to compensate the full market value of housing in the event of war damage.
At INGO Insurance Company, there are package solutions with limits of up to UAH 3 million for apartments and up to UAH 5 million for houses, as well as classic individual insurance with property valuation. The company emphasizes:
“A payout may be less than the actual loss only if it exceeds the established insured amount. This is not a refusal: the company pays the maximum limit provided by the contract.”
At the same time, there are clear territorial restrictions for regions with a high risk of repeated attacks.
Arsenal Insurance Company declares broader coverage up to UAH 10 million with war risks and the possibility of involving a foreign reinsurer to ensure 100% of the property value. The company fundamentally does not apply an underinsurance coefficient.
“We do not have this. If an insured event occurs, we pay the full amount for which the housing is insured. The client chooses a comfortable insured sum and knows exactly that they will receive it in full,” notes Antonina Yakovenko.
The extended conclusion of Time for Action is that insurance of housing against war risks in Ukraine is gradually moving out of a niche state, but has not yet become a mass mechanism for full property protection. Most contracts remain limited and focused on partial damage. Full insurance is expensive, complex in underwriting, and practically inaccessible without state participation in risk reinsurance. At the same time, the market has already adapted to wartime conditions, created specialized products, and begun making real payouts. The growth of attacks is changing the behavior of homeowners, and demand for insurance is increasing. However, without systemic decisions at the level of state policy, this instrument will continue to remain a compromise between the need for protection and people’s financial capabilities.
About the Author
Related posts:
The Primary Housing Market in 2025: Why Demand Remains Low While Prices Rise 
Medical Insurance as a Key Factor in Business Competitiveness During Crisis 
Renting in Ukraine in 2025: Why Prices Remain High Despite Falling Demand 
Housing Reconstruction in Kyiv: Between Official Figures and Long Queues for Assistance
