The decision to buy property insurance (including real estate) is accompanied by various factors, including the factor of financial literacy of the population, which is currently receiving great attention. Although many studies have focused on both property insurance and financial literacy separately, there is a gap in research that shows the relationship between the financial literacy of the population and the demand for property insurance. The impact of financial literacy on property insurance demand has not been widely studied in Latvia or elsewhere in the world. Since real estate insurance is an important type of property insurance, the authors explore this segment of the insurance market. The purpose of the study is to analyze the impact of the financial literacy of the population on the demand for property insurance. The novelty of this article is that the impact of financial literacy on the demand for real estate insurance services in Latvia is being investigated. Research methods are the monographic method, structured survey of respondents, interviews, descriptive statistics, ANOVA test, trend analysis. The article can be useful and interesting for both insurers providing property insurance services and policyholders planning to purchase a real estate insurance policy.