An insurance policy can protect your home without necessarily qualifying for the ENFIA reduction. The tax scheme has particular requirements that must be checked separately.
Three risks together
The home must be insured against earthquake, fire and flood. Missing one can leave the home insured but outside the conditions for this reduction.
Check these items
| Check | Why it matters |
|---|---|
| Earthquake, fire and flood together | All three are required by the scheme |
| Insurance duration | The reduction depends on the qualifying period |
| Reconstruction value | The statutory minimum must be met |
| Property and ownership details | Policy data must match the relevant property rights |
| AADE application and insurer confirmation | Insurance alone does not replace the administrative procedure |
Tax rules need a dated check
For the 2026 assessment, AADE specifies an annual reduction of 20% where the home's taxable value does not exceed €500,000 and 10% above that threshold. A shorter qualifying period produces a proportional reduction, with at least three months of insurance required. The reconstruction-value criterion for 2026 is €900 per square metre.
For the 2026 assessment, qualifying insurance concerns the preceding year, 2025. Source: AADE 2026 FAQ, questions 2–4.
These are 2026 rules, not a promise that the same thresholds or deadlines will apply to a later assessment. Check AADE's official application and year-specific guidance before relying on a tax benefit. Last checked: 11 October 2026.
Reconstruction value is not market value
The scheme's value criterion concerns reconstruction, not a property's sale price. A tax minimum is not automatically the correct reconstruction amount for your particular home. Review the actual sum insured.
Earthquake should not be assumed
Check whether it is included, whether the property is accepted and what deductible applies. Fire and flood also need explicit checking. Read the earthquake guide.
Application and common mistakes
Use the official AADE application, associate the policy with the relevant property rights and check the insurer's confirmation and applicable deadlines. Do not assume a previous application, partial-year policy or mismatched details automatically qualify.
Common errors are assuming every home policy qualifies, overlooking one required risk, using a casual insured value, ignoring duration and treating the tax reduction as the sole reason for insurance.
Proper protection first, tax benefit second
A fire, flood or earthquake can cost much more than a tax saving. First establish what your own home needs, then check whether the policy also meets the tax conditions.