Government to Mandate Home Insurance for Urban Buildings Within a Year

Kathmandu — The government is set to enforce a new policy mandating home insurance as a prerequisite for obtaining a house construction plan completion certificate in urban areas. The provision is part of an action plan based on recommendations from the High-Level Economic Reforms Advisory Commission.

According to the plan, homeowners in urban municipalities will be required to insure their properties before receiving final approval for construction completion. The government has provided a one-year window for full implementation of the provision.

To encourage compliance, the policy includes a tax incentive: the insurance premium paid will be deductible when assessing the value of taxable property. This means homeowners can subtract the premium amount from their tax calculations, offering financial relief while promoting risk protection.

The Ministry of Urban Development, Ministry of Finance, and local governments will work jointly to enforce the policy. The initiative aims to promote disaster resilience and financial security for urban homeowners, especially in light of increasing climate-related risks and natural disasters.