AZE.US
A recent apartment fire in the capital has renewed attention to how property damage is compensated and the role of insurance in covering losses.
Experts say the primary protection against financial loss is property insurance. If a home is uninsured, owners typically must bear restoration costs themselves.
Mandatory insurance usually covers structural elements and repairs but may not include personal belongings unless additional voluntary coverage is purchased.
According to Azerbaijan’s Compulsory Insurance Bureau, residential and non-residential buildings, apartments and private homes owned by individuals, companies or the state are subject to mandatory insurance designed to compensate material damage caused by fires or other incidents.
In 2025, 194,814 compulsory property insurance contracts were signed, up 4.2% from 186,940 in 2024.
Fire statistics show 199 people were injured in 2025, down from 210 a year earlier, while the number of fatalities rose by 20 cases year-on-year. Authorities also conducted fire-safety inspections at more than 75,000 buildings and facilities during the reporting period.
State compensation may be provided in cases of natural disasters or large-scale fires affecting many residents, with local authorities able to offer financial assistance even when property is not insured.
Specialists say insuring real estate is not only a legal requirement but also a key safeguard against severe financial risk.