The government of Cyprus has launched a comprehensive fire recovery support plan following the deadly wildfires that swept through mountainous areas of Limassol this week. Support includes full state compensation for damaged homes, wage protection for affected workers, and swift mobilisation of the insurance sector for those with coverage.
Full compensation for damaged property
Speaking on behalf of the government, the Government Spokesperson, Finance Minister, and President of the Republic confirmed that the Republic of Cyprus will fully restore all material damages caused by the fire, regardless of insurance status. This policy is particularly important as home insurance is not mandatory in Cyprus, except in cases where properties are mortgaged.
“Our primary objective is the protection of human life,” said the President on Thursday night. “But beyond that, I want to reiterate that, in terms of material damages, there will be full restoration by the Republic of Cyprus. I have already spoken with the Ministers of Finance and Labour. For those whose workplaces have been affected and who are unable to continue working, the state will stand by them. At the same time, for those in need of shelter, Civil Defence and the Deputy Ministry of Social Welfare are responding accordingly.”
Wage protection for affected workers
The Ministry of Labour has activated an emergency income support scheme for individuals unable to work due to the disaster. Following coordination with the President, the Ministry confirmed that a financial assistance plan will be implemented to cover income loss for both employees and self-employed workers whose businesses or workplaces were directly impacted by the fire.
The financial benefit will be calculated based on previously registered income data, with the aim of providing timely support until the individuals can return to work. The goal, according to the Ministry, is to offer swift, stabilising assistance during the transitional period before full professional reactivation is possible.
Damage assessment and insurance mobilisation
The Limassol District Administration announced that damage reporting began yesterday, covering private homes, commercial premises, and vehicles in the affected communities. Emergency contact numbers have been made available for citizens to report losses, while inspection crews will conduct on-site evaluations as part of the official loss assessment process.
For properties with existing fire insurance policies, insurance companies will cover structural and content losses according to the terms of each policy. The Insurance Association of Cyprus (SAEK) confirmed that its member companies are on full alert and ready to process claims.
“We are deeply saddened by the loss of two human lives, and by the enormous damage caused to homes, property, and the natural environment,” SAEK said in a public statement.
“We express our gratitude to all those participating in the heroic battle against the flames — firefighters, forestry officers, volunteers, and every service that has worked non-stop since yesterday. SAEK and its member companies stand with our fellow citizens, ready to support the immediate restoration of insured properties.”
Speaking to Economy Today, SAEK Director General Andreas Athanasiades added that the insurance industry is prepared to respond quickly to claims as soon as they are submitted. He confirmed that companies are standing by to expedite processes and deliver compensation where cover applies.
A wider conversation about insurance coverage
Although fire insurance is not currently mandatory in Cyprus, the wildfire has reignited discussion around expanding insurance obligations and incentives. Athanasiades noted that this is a conversation SAEK intends to raise with the state once the immediate crisis has passed.
Similar discussions were held in Greece following the catastrophic floods of Storm Daniel, leading to national efforts to broaden insurance coverage through incentives and policy reform. In Cyprus, home insurance is typically only required for mortgaged properties- leaving many homes, especially holiday or fully-owned houses, uninsured against natural disasters.
Additionally, most home insurance contracts do not cover events like earthquakes, another vulnerability that may be revisited in the coming months.
While the wildfire’s toll is still being tallied, the combined efforts of the state, civil services, and insurance sector aim to ensure that those affected are not left behind. With homes lost, businesses damaged, and families displaced, the government’s commitment to full fire recovery support will be vital in the weeks and months ahead.
Also read: President on fire responsibility: A full assessment will be conducted
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