RIGA, Jan 9 (LETA) - About 45 percent of apartments in a building on Bauskas Street in Riga, which sustained significant damage in a gas explosion in early January, were insured, Janis Abasins, President of the Latvian Insurers' Association (LIA), told LETA.

Various crises and accidents regularly occur in Latvia - rivers overflow their banks, there are violent storms and heavy rains, devastating fires break out, and suchlike, said Abasins. People are evacuated, municipalities find temporary housing and the state provides emergency aid. Each case offers different lessons and raises the question of whether people have done everything to protect themselves and their loved ones.

The gas explosion in the building on Bauskas Street on January 2 serves a reminder of how fragile everyday safety can be, said Abasins. Two people were killed in the explosion, several others were injured, and more than 70 residents were left without homes.

According to information available to the LIA, about 45 percent of the apartments in the buildings were insured.

There may be different reasons why so many apartments were not insured: some residents could not afford it, some had other priorities, and some thought that nothing would happen to their homes.

"Unfortunately, if you live in an apartment building you can only control our own actions to a large extent, but it is difficult or even impossible to influence what your neighbors do on their property. This significantly increases risks, and irresponsible or arbitrary actions by one neighbor can have consequences for the whole building," emphasized Abasins. Furthermore, the explosion on Bauska Street once again confirms that only professionals should work with gas and other dangerous equipment.

The LAA head also said that the accident showed the difference between insured and uninsured residents. Those with insurance received the first practical support the fastest: in the first few days, initial compensation payments were made for basic necessities, daily expenses or temporary housing.

State and Riga City Council ensure minimum support, but full security and long-term financial stability are best ensured through individual responsibility and insurance.

According to Abasins, the exact extent of the damage will be determined by construction specialists and experts. If the building can be restored, insurance will cover both the cost of restoring individual apartments and repairing the building's shared structural elements, if this is stipulated in the contract. If the building cannot be restored, insurers will reimburse market value of the apartments or the purchase of equivalent housing.

Provision of temporary accommodation is also important support for victims, said Abasins. If this is covered by the insurance contract - and usually it is - insurers will reimburse the cost of renting equivalent accommodation, as well as cover utility payments for the damaged apartments. This support is usually provided for a specific period of time, for example, up to 12 months, giving people time to make informed decisions about their future living arrangements.

For residents whose homes were not insured, the main support comes from Riga City Council, which provides temporary accommodation, while Riga Social Service provides crisis allowances to help residents cover urgent needs. This support is often limited in terms of duration and amount, compared to possibilities offered by insurance.

"This also raises an uncomfortable but necessary question - should solvent residents who could have taken care of their own property by purchasing insurance be equally eligible for public support? It is clear that support is vital for socially vulnerable groups, but is it for everyone?" said Abasins.

Discussions on financial literacy usually focus on loans, savings and investments, but insurance is also a fundamental pillar of financial security and an undervalued instrument for national development. Moreover, Latvia is significantly behind the European average in property insurance. Eurobarometer data show that, on the average, 62 percent of Europeans have home insurance, while only about 50 percent of homes in Latvia are insured, even though insurance products are relatively widely available in Latvia.

As reported, two people died in a gas explosion on Bauskas Street in Riga's Tornakalns neighborhood on January 2 - a resident who was illegally tampering with a gas meter in his apartment and an employee of gas distribution system operator Gaso who had arrived responding to a call about a possible gas leak. Several persons were injured.

The explosion destroyed the roof and part of the fourth and fifth floors of the building.