The Cabinet of Ministers of Ukraine has approved improvements to the mechanism for insuring property against war-related risks. The changes enter into force and apply to property damaged or destroyed from January 1, 2026, reports ProAgro Group.
From now on, compensation will cover not only real estate but also production equipment (machinery, devices, tools, and other equipment) used in core business operations. At the application stage, the requirement to submit a property valuation report has been abolished — businesses can independently indicate the estimated amount of damage in their application.
In addition, the compensation cap (UAH 10 million per property or UAH 1 million in insurance premium compensation) will now apply to each legal entity separately, rather than to all related parties collectively. The updated rules clearly state that compensation is provided not only for direct missile or artillery strikes, but also for damage caused by blast waves, falling UAVs, debris, and other indirect effects of weapons.
State support will continue to be provided through two instruments: direct compensation for damages to enterprises whose property is located in high-risk regions (including Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions, excluding temporarily occupied territories), and partial compensation of insurance premiums for businesses operating in other regions of Ukraine.
“We have removed unnecessary bureaucracy at the initial stage: businesses no longer need to spend time and money on property valuation just to submit an application. We have also included production equipment in the coverage and clearly defined compensation for damage caused by drones and debris. This will make the mechanism not only more accessible, but also legally secure for policyholders,” said Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.
As previously reported, starting January 1, 2026, a new war risk property insurance mechanism will be launched in Ukraine, providing direct compensation for enterprises in frontline regions and partial compensation of insurance premiums for businesses across the country.
