Mandatory natural disaster insurance for Real Estate agencies: deadlines and requirements by 2025

“Law Pills”, the legal column curated by the Legal Department of Gruppo Toscano

Every month, in the “Law pills" column, we explore legal and regulatory topics related to the real estate sector. Today, we look at what changes for businesses — and specifically for real estate agencies — with the new mandatory natural disaster insurance (CAT NAT).

With the 2024 Budget Law (No. 213/2024), it has become mandatory for all businesses — including real estate agencies — to take out an insurance policy against natural disasters (CAT NAT).

The real estate sector is largely made up of small and micro-enterprises, for which the deadline of December 31, 2025, for taking out the policy is approaching.

What does the Law establish?

Law No. 213/2024 introduced the obligation for all businesses to insure themselves against the risk of catastrophic natural events.

The original deadline was set for March 31, 2025, for all categories, but Decree Law No. 39/2025 (converted into Law No. 78 of May 27, 2025) subsequently extended and differentiated the deadlines based on company size:

• Large enterprises: March 31, 2025 (with a 90-day grace period before penalties apply)
• Medium-sized enterprises: September 30, 2025
• Small and micro-enterprises: December 31, 2025

During the conversion of the Decree, criteria for classifying companies were established by referring to the European Commission Recommendation 2003/361, which defines:

A medium-sized enterprise as one with:

• fewer than 250 employees
• annual turnover not exceeding €50 million
• balance sheet total not exceeding €43 million

A small enterprise as one with:

• fewer than 50 employees
• annual turnover or balance sheet total not exceeding €10 million

A micro-enterprise as one with:

• fewer than 10 employees
• annual turnover or balance sheet total not exceeding €2 million

The obligation is bilateral and therefore applies to:

• Businesses, which must obtain insurance coverage
• Insurance companies, which are required to offer such coverage

The insurance obligation arises automatically from a company’s registration in the Business Register maintained by the Chambers of Commerce (C.C.I.A.A.).

The implementing and operational procedures for CAT NAT insurance schemes are specified in Interministerial Decree No. 18/2025.

Natural Disaster Insurance for Real Estate Agencies

With specific reference to the real estate agency market, the sector is mainly made up of small and micro-enterprises; therefore, the legal deadline to comply with the insurance requirement is December 31, 2025.

What does the CAT NAT policy cover?

Businesses must insure themselves against the following catastrophic natural events:

• Flood
• Overflow
• Inundation
• Earthquake
• Landslide

The coverage applies to assets used in business operations, including:

• Land
• Buildings
• Systems and installations
• Machinery
• Industrial and commercial equipment

For real estate agencies, this means that the offices where clients are received, furniture, computer equipment, and tools used for daily operations must be included in the insurance coverage.

Rented Agency Premises: Who Must Take Out the Policy?

When the law introducing the insurance obligation was issued, an interpretative issue arose regarding whether the requirement applied only to properties owned by the business or also to those rented or leased.

One of the most relevant points for real estate agencies, therefore, concerns property ownership. Almost all business premises used by agencies are rented.

Does the insurance obligation also apply in these cases?

Decree Law No. 155/2024 (converted into Law No. 189/2024, known as the Fiscal Law) clarified that the insurance obligation applies to all assets used in the conduct of business, regardless of ownership title, except for those already covered by equivalent insurance policies, even if taken out by a party other than the entrepreneur using the assets.

In practice:

• If the property is already insured by the owner, the agency is not required to take out a second policy.
• If the owner does not have CAT NAT coverage, the tenant agency must take out the insurance policy, even if it does not own the property, and must notify the owner of the policy’s activation. In such cases, any compensation paid in the event of damage goes to the owner, who is legally required to reinvest the amount in restoring the damaged property.

What Must Real Estate Agencies Do by 2025?

By December 31, 2025, every real estate agency must:

• Verify whether the property owner already has an active CAT NAT insurance policy;
• Request a copy of the coverage or a written declaration confirming it;
• Take out its own policy if no coverage exists;
• Formally notify the owner of the new policy and keep related documentation and receipts.

In summary:

• Natural disaster insurance is mandatory for real estate agencies as well.
• The deadline for small and micro-enterprises is December 31, 2025.
• The obligation also applies to rented premises if not already covered by the owner’s policy.
• The aim of the regulation is to protect business continuity and mitigate the economic impact of natural disasters.