The Ministry of the Interior in Cyprus is working to assess the damage caused by the devastating fire that engulfed the mountainous areas of Limassol and affected 20 villages, and to pay compensation to those affected. The flames destroyed 104 km² of forests and farmland, causing the deaths of two people who were unable to leave their homes.
According to the latest data, 704 properties have been damaged in various ways: Of these, 532 are residential buildings and the remaining 172 are commercial premises, warehouses and other structures. Of the residential properties, 325 are permanent residences and 207 are summer cottages and country residences. It is expected that, by the end of September, a significant number of compensation applicants will receive what they are owed.
The priority is to get people back into their homes
Particular attention is currently being paid to the 308 properties that have been partially damaged. Owners of these properties will receive compensation in a lump sum after signing an agreement with the damage assessment. This will enable repairs to begin promptly and render the houses habitable.
In cases of total loss, the compensation payment has been divided into three stages: 25% upon signing the documents, 25% after the contractor is appointed and 50% upon completion of half of the restoration work.
Legality and accuracy of damage assessment
Each application is checked for compliance with building regulations and licences. The Limassol authorities, together with the Cyprus Technical Chamber (ETEK), assess properties at market prices and verify documents to prevent violations such as unauthorised changes to the building's intended use or exceeding the permitted area.
A special procedure applies to illegal buildings: owners can receive an initial payment of 25% and, at the same time, obtain all the necessary permits to continue receiving compensation.
Difference from previous aid programmes
This time, the Cypriot government will compensate for 100% of the damage to approved and licensed properties. Previously, there were restrictions — payments did not exceed 50% of the cost of losses. Additionally, compensation for equipment and property is now paid separately from the amount for building restoration.
EU funding and assistance
Funds for compensation have already been allocated in the budget, but if necessary, the authorities intend to request additional appropriations from Parliament. Cyprus has also requested support from the European Union under the mechanism for assisting victims of natural disasters.
The role of insurance companies
Alongside state payments, insurance companies have also become more active. It is estimated that around 150–200 properties damaged or destroyed by fire were insured. The insurance sector has already paid significant sums to victims, with the total compensation amount potentially reaching €20 million.