Latvia has established a standardized national framework for compensating direct property damage caused by military incidents occurring during peacetime, including drone incursions and other hybrid threats. Under the regulation effective as of July 10, the state provides financial restitution for damaged public and private assets, ranging from buildings and infrastructure to crops and livestock.
Compensation Eligibility and Filing Procedures
Affected parties must initiate the claims process within three business days of a military incident. Claims involving general property must be submitted to the relevant local municipality. For agricultural losses—specifically crops, plantations, forests, livestock, or specialized farming machinery—claims must be directed to the Rural Support Service.
The verification process relies on the National Armed Forces, which must officially confirm the occurrence of a military incident. Once confirmed, the responsible authority—either the municipality or the Rural Support Service—is required to determine the compensation amount within one month. Payments are disbursed following the allocation of necessary state budget funding.
Tiered Compensation Rates Based on Insurance Status
The state’s financial contribution is contingent upon the availability and use of private insurance. The framework establishes two distinct tiers for reimbursement:

- Insured or Unavailable Coverage: If a property owner has secured insurance against military risks, or if such insurance coverage is unavailable on the market, the state will compensate up to 90 % of the verified direct damages.
- Uninsured Property: If military risk insurance was available for purchase but the owner chose not to obtain it, the state’s liability is limited to 75 % of the direct damages.
Strategic Context of Hybrid Threat Mitigation
By standardizing the process, the Latvian government aims to reduce uncertainty for citizens and businesses.
Frequently Asked Questions
What counts as a “military incident” for compensation?
The regulation covers direct damage caused by military activities during peacetime, including drone incursions and other categorized hybrid threats. The National Armed Forces are responsible for confirming whether a specific event qualifies as a military incident under these rules.
Is there a deadline to file a claim?
Yes. You must file your report of damage within three business days of the incident occurring.
How long does the review process take?
Once the incident is verified by the National Armed Forces, the municipality or the Rural Support Service has one month to issue a decision regarding the amount of compensation to be paid.
Does the state pay the full amount of the loss?
Not necessarily. The state covers a maximum of 90 % of direct damages if you are insured or if insurance is unavailable. If you failed to purchase available insurance, the state will cover up to 75 % of the direct damages.
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