Trip insurance

You’ve just signed the paperwork for your dream home, but what if there are faults or deficiencies that weren’t named in the home condition report or the electrical installation report?

Any damage could end up costing you dearly. You should therefore consider Indemnity insurance, which covers any hidden damages.

Indemnity insurance is optional – it is not mandatory. However, it often proves a sensible decision – both for the buyer and seller. One condition for buying Indemnity insurance is that a building expert has drawn up home condition and electrical installation reports. The reports are a written assessment of your home and a review of the electrical installations. They give you the buyer a good insight into the general condition of the house, and highlight any visible damage or signs of damage.

What does Indemnity insurance cover?
The insurance covers any damage, hidden faults and deficiencies that existed before you took over the property. It is a prerequisite that the damages haven’t been listed in the home condition or electrical installations report, or have been incorrectly described.

Examples of typical damage that is covered:

  • Breaks
    Leaks
    Deformation
    Cracks and crack formation
    Missing building parts
    Illegal electrical installations
    Physical conditions that reduce the value or usability of the property
    Conditions that risk causing damage
    Benefits for both buyer and seller
  • Both the buyer and seller can benefit from this insurance:

The Buyer
If you, as the buyer, discover damage that has not been detailed in the home condition or electrical installation report, you are entitled to make a claim from the insurance. Without insurance, you take over your property with the risk of it containing pre-existing faults or damage. In principle, it is the seller who should cover any damage before you take over the property. However, arguing whether the damage occurred before the sales papers were signed can be tricky.

Seller
As the seller, you have a 10-year liability for damage, faults and deficiencies. This means that even though you have sold your house, you have a financial liability to correct any damages. If you and the Buyer agree to buy Indemnity insurance, you avoid having to pay for any unlisted damages.

What does Indemnity insurance NOT cover?
Indemnity cover varies from company to company, but doesn’t generally cover:

Damage or deficiencies that occur after you have signed the purchase agreement
Wear and tear
Damp in the cellar of older houses
Minor faults that do not have a significant impact on the value or usability of the property
Visible faults and deficiencies
Faults, deficiencies or damage described in the home condition and electrical installation reports.
How long does Indemnity insurance cover me for?
You can choose whether the insurance should cover you for five or ten years. If you choose the shorter cover, you can always extend it if you change your mind. If you want to extend it, you must do so within five days of the insurance expiring, at the latest.

What does Indemnity insurance cost?
The price depends on the size and age of the property – and varies from company to company.

The seller is obliged to pay half the insurance cost. It is usually the estate agent who suggests where the insurance should be purchased. The buyer may choose to buy the insurance from another company. The seller is still only obliged to pay half of the quoted price of the insurance originally offered by the estate agent.
When you find your dream home, you will probably be busier thinking about how your new home should be arranged than wondering whether to take out Indemnity insurance.

Nevertheless, it is a very good idea to examine how you are covered if one day you find hidden defects in the house.

The Indemnity insurance cannot be taken out through our online insurance calculator because it is offered by our partners FRIDA Forsikring or Tryg Forsikring. If you wish to receive a quote for Indemnity insurance, you should therefore contact either FRIDA Forsikring or Tryg Forsikring. You can find their contact information in the box on the right.

Avoid future concerns
Avoid future concerns
The insurance covers nonvisual damges unmentioned in the surveyor’s report.

5 or 10 years of coverage
5 or 10 years of coverage
It is up to you weather you purchase 5 or 10 years of coverage.

It benefits both parts
It benefits both parts
It is a good deal for seller and buyer to take out indemnity insurance.

The insurance covers
Indemnity insurance
Coverage
Damage to the property

Repairing hidden defects

Plumbing and heating installations

Illegal plumbing and heating installations

Electrical installations

Illegal electrical installations

The form is indicative and is an extract from the insurance terms and conditions. Any compensation will be calculated according to the rules in the insurance terms and conditions.