Insurance Requirements (Commercial property) | Luminor

Valid from 22.05.2019.

General provisions

In the insurance policy must be specified:
 
Policy Holder” is Customer or Customer representative (Not Luminor)
Insured” is Customer – Borrower or Pledger.
Beneficiary” is Luminor Bank AS Latvian branch, reg. No. 40203154352.

  • Insured object must be identified by Address according to Property Register (otherwise object will not be identified)
  • Deductible amount per insurance object is (not applicable to Vehicles and machinery1 1000 EUR or less. Maximum deductible amount for fire risk for wooden houses - 10% from compensation.
  • If loan agreement identifies more than one object to serve as a collateral to loan agreement, objects must be clearly identified in insurance contract.
  • Only legally valid insurance contracts are accepted. In case Luminor receives information that Policy is not paid in agreed payment date and is to be terminated, Luminor holds the right to issue mandatory insurance or collect additional fee (according to agreement).
  • Has to be insured during all lean period. Renewed policy need to be send to Luminor in a timely manner.  
1Vehicle minimum requirements covered in Insurance requirements (Leasing)

Insurance companies accepted by the Bank

Luminor Bank accepts the policies issued by licensed Insurance companies:

  • IF P&C Insurance AS Latvijas filiāle
  • Balta AAS
  • Baltijas Apdrošināšanas Nams AAS*
  • Balcia Insurance SE
  • BTA Baltic Insurance Company AAS
  • Compensa T.U.S.A. Vienna Insurance Group Latvijas filiāle
  • ERGO Insurance SE Latvijas filiāle
  • Gjensidige Baltic AAS
  • Seesam Insurance AS Latvijas filiāle
  • Swedbank P&C Insurance AS Latvijas filiāle
In case of suspension/cancellation of the license, acceptance of the policies issued by the company is suspended.

*Maximum sum insured limit per one object 100 000 EUR

Minimum risk cover and sum insured

Insurance policy must include:

Insurable objects Required risks Sum Insured
Real estate objects
Inventory;
Goods at stock;
Unfinished goods;
Industrial (production)
machinery and equipment
Fire related risks
Natural disasters
Water damage (e.g. Leakage, engineering system accidents)
3rd party damage (e.g. theft, vandalism, robbery)
All insured objects must be insured with full recovery/replacement value1.
 
For goods, inventory, equipment and machinery replacement value is market value.
 
 
 
 
 
For objects under reconstruction and Construction sites recovery value is amount of estimated value of the project (including recovery value for existing property).
 
 
 
 
 
 
 
 
 
 
For livestock replacement value is market value.
 
 
 
 
 
 
Objects under reconstruction, during renovation
(Without building permit)
 
Fire related risks
Natural disasters
Water damage (e.g. Leakage, engineering system accidents)
3rd party damage (e.g. theft, vandalism, robbery)
+ +
      Reconstruction related clause, where insurance company confirms that minimal named perils stated in insurance contract are valid during construction/reconstruction works. 
Construction sites
(with building permit)
Construction all risk cover:
any sudden and direct physical damage of previously insured contract works or property or direct damage to property caused by any cause because of a sudden and unforeseen effect of an external physical force, including the following:
Fire related risks
Natural disasters
Water damage (e.g. Leakage, engineering system accidents)
3rd party damage (e.g. theft, vandalism, robbery)
 falling of or hitting by objects, construction machinery, vehicles, cargo;
collapse of structures or building;
accidental acts of employees of the construction company.
Livestock
 
Fire related risks
Biological risks (Accidents, Illnesses)
Natural disasters
3rd party damage (e.g. theft, vandalism, robbery)
Land vehicles KASKO2
Industrial vehicles, moveable machinery All risks according to Construction Plant’s and Machinery all risk insurance.3
LAND / debtors No requirements for risk insurance
Non-standard objects (as ships, ferries, yachts, airplanes, helicopters, guarantees, forests, crops)  
 
Non-standard objects – policy project must be agreed during decision making process with decision making body and identified expert to support pay-out.
 
1NB! If real estate property is to be insured in actual, market, underinsurance or first loss limit insurance (if mentioned in insurance policy), it must be agreed according to Bank’s powers to act according to credit manual or approved by person with delegated rights.
2More detailed requirements in Insurance requirements (Vehicles and machinery)
3More detailed requirements in Insurance requirements (Vehicles and machinery)
  • All insured objects must be insured with full recovery/renewal/replacement value.
  • Under-insurance is not allowed.
  • It is obligation of insured and insurer to avoid underinsurance.
  • If property is to be insured in actual, market, underinsurance or first loss limit insurance (if mentioned in particular insurance policy), it must be agreed according to Bank’s powers to act.