Over 92,000 buildings damaged in Iran conflict, raising insurance risks

News desk: Iran’s ongoing conflict has caused extensive damage to civilian infrastructure, putting significant pressure on the country’s housing and insurance sectors.

According to the Iranian Red Crescent Society, more than 92,000 civilian structures have been damaged across the country. The organisation reported a total of 92,662 affected units, including 71,356 residential buildings and 20,399 commercial properties.

The destruction extends beyond homes and businesses. At least 290 healthcare facilities and 600 educational institutions have been affected. The Red Crescent also reported damage to its own operations, including 17 centers, 46 ambulances and three relief helicopters.

The conflicts have heavily impacted densely populated areas, leading to widespread displacement, according to local reports. The figures, however, could not be independently verified.

The scale of damage is highlighting significant gaps in Iran’s insurance coverage. Property insurance policies in the country typically cover risks such as fire and natural disasters. However, as in most global insurance markets, these policies generally include a standard ‘war exclusion clause.’

As a result, damage caused by war, missile strikes, or armed conflict is typically excluded from coverage. This means insurers are not obligated to compensate affected individuals and businesses for conflict-related losses.

Industry experts warn that the lack of coverage could leave property owners facing severe financial hardship. It may also erode public confidence in the insurance system if losses remain uncompensated.

In large-scale conflict situations, reconstruction efforts usually fall on the government. Iran has previously established special funds and commissions to address war-related damages and analysts expect similar measures could be introduced if the current situation persists.

The conflict is also disrupting emergency response and consular services, limiting the delivery of aid. Authorities have urged citizens to remain cautious due to the evolving security conditions.

Market analysts caution that a prolonged conflict could further increase damage to the housing sector and intensify pressure on insurers. Rising reconstruction costs are likely to have broader, long-term economic consequences.

As the situation continues, both the scale of infrastructure damage and the limitations of insurance coverage are expected to remain key concerns for policymakers, insurers and affected communities.