Flood damage following storm Hans - which compensation schemes apply?
17.08.2023 | Fast eiendom
Written by: Advokat/partner Marius G. Hvitmyhr og advokatfullmektig Ellen Andrea Christensen

The insurance companies state that they have received several thousand damage reports as a result of storm "Hans", and most of these concern water damage to buildings. It is expected that the economic consequences will exceed NOK 1 billion.

Both the insurance companies and the Norwegian Nature Damage Pool are currently processing the damage reports that have been received. It is also expected that the compensation settlements could lead to disputes about the understanding of insurance terms, the size of the compensation settlement, whether the buildings are to be rebuilt in flood-prone areas, etc.

Here we briefly describe which compensation schemes exist beyond normal insurance.

Compensation scheme through insurance agreement and Norwegian Natural Damage Pool
All insurance companies that offer fire insurance are affiliated with Norsk Naturskadepool. The "pool" is a link between the insurance companies and the state, and in the event of a natural disaster, all buildings and any movable property that are insured against fire are automatically insured against natural damage. This follows from the Natural Damage Act, and it means that private insurance against fire ensures cover in the event of natural damage.

However, this scheme does not cover damage to motor vehicles, caravans, trailers, boats or the like. You must therefore typically claim compensation for damage to these through your own insurance contract. According to the Insurance Contracts Act, the reporting deadline for damages is 1 year.

Compensation through the state's natural damage scheme
When it comes to areas or objects that are not covered through a private insurance agreement or in terms of coverage through the "Pool", you can apply for compensation for these through the state's natural damage scheme. This could, for example, be damage to cultivated land, forestry land, certain roads, bridges etc. Conditions for applying are that the damage is directly caused by a natural disaster, and that the general insurance scheme does not cover it. Note that the deadline for applying for compensation is 3 months from when the damage took place.

Aid
If a dispute arises about insurance cover, settlement, reinstatement and other matters in connection with the compensation settlement, most insured properties will have cover for legal expenses (legal aid insurance).

Svensson Nøkleby has extensive experience with this type of matter, and we would like to have a non-binding chat with you about this.

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