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Homeless single mothers: Child allowance counts towards rent

A woman risks becoming homeless after a Stockholm public housing company ruled out her child allowance as a legitimate source of income, writes Elizabeth Dacey-Fondelius. Now the rental companies have seen the error of their ways. But for this single mother of two, the clock is still ticking.

The woman, who asked to be named by her surname only, Hansson, will try again to secure a stable and permanent home for herself and two young daughters on Monday April 27th. She is invited to a viewing of a rental apartment in the new Stockholm residential neighborhood of Hammarby Sjöstad.

The new opportunity comes none too soon as her current sub-let will run out on May 31st. If the one-bedroom apartment suits her little family’s needs, Hansson is ready to sign a lease. The chance the apartment will be hers is still relatively small since 27 interested hopefuls must decline their opportunity to sign first. Hansson is 28th on the list.

While it’s a long shot, it’s not impossible. In fact, a similar long shot nearly paid off just a few months ago. However, the victory was short lived when Hansson’s income was deemed insufficient for the monthly rent. This came as a surprise to Hansson.

“I was sure I would make the cut off when I added up my total income according to the general information.”

Currently she pays about the same in rent as the new apartment would have cost. She adds, “I even save about 4,000kr per month as well.”

According to the information on the Stockholms Stads Bostadsförmedlingen website (the public rental agency which manages the waiting list and the list of available rental units) the three largest Stockholm rental companies use the same minimum income determination. That is defined as: “The total sum of gross income including allowances shall equal three times the rent for the unit in question.”

The description goes on to clarify that “income” is defined as, “Salary, student grants, welfare allowances, housing allowance, child support payments, unemployment allowances or similar.” With this description Hansson took for granted that the child allowance was included. She was wrong, or so said the rental company which owned the apartment block, Stockholmshem.

Oddly, Stockholmshem excluded the child allowance (barnbidrag) in their calculation.. The reason, according to Birgitta Gradin, the person responsible for the income calculations at Stockholmshem:

”We had chosen in our work routines to only include allowances which are housing related and therefore the child allowance was not included.” Without the child allowance in the calculation, Hansson’s income was just under the cut off calculation for the 8,800 kronor monthly rent. She got passed over and the apartment went to someone else.

Hansson’s rejection came to the attention of the media as a result. Due to her unfortunate situation, Stockholmshem quickly revised its policy. Björn Ljung (Lib), chairman of Stockholmshem, told The Local that upon hearing of Hansson’s case he reacted directly.

“I thought this policy was quite strange as this is one of the most stable incomes anyone can have. I called immediately and said that we have to change the policy right away.”

While Ljung was quite sympathetic to Hansson’s plight he felt there was nothing Stockholmshem could do to rectify the injustice since the policy dismissing the child allowance was in place at the time Hansson was rejected.

He offered optimistically: “From now on she’s going to be accepted as a tenant by all three of the Stockholm rental companies [if they need to calculate in the child allowance.]”

Despite the friendly optimism expressed by Björn Ljung and the change in work routines, Stockholmshem will not publish for public availability the actual allowances included or excluded in the qualification calculation. Gradin insists that all 12 people responsible for calculating incomes have been informed of the procedural change.

“We have regular department meetings and job training along with daily meetings with colleagues. When we make changes [to procedures] everyone is informed.”

The Local checked in with the other companies to hear how Hansson’s case has affected their income calculation policies and routines.

Another of the three giants, Familjbostäder, confirmed that they now include child allowance in the income calculation as a matter of course. Mia Wester Carlsson, the information officer at Familjbostäder, investigated the transparency of the policy as a result of The Local's probe and was happy to report that clear information will now be available as part of the firm's FAQ page.

Carlsson added, “It’s important for this information to be available to our customers.” She said a memo would also be distributed internally to be sure all agents who evaluate a potential tenant’s income are fully apprised of the policy change.

The apartment Hansson is hopeful to get this Monday is owned by Svenska Bostäder. According to their spokesperson, Fredrik Jynell, “We have accepted child allowance [as income] for a long time.”

The monthly rent for this particular unit is 8,200kr per month. Without the child allowance income included in the calculation, Hansson would be under the minimal income by about 200kr per month. When asked specifically about this unit Jynell said definitively, “If she is the tenant who will be offered the apartment we will calculate in the child allowance amount.”

If any of the 27 people ahead of Hansson on the list indicate they would like the apartment, she is back to square one still in search of a permanent home for her young daughters.

“It would be nice to have [permanent housing] secured before my older child starts school this autumn.”

Regardless of this Monday’s result, it is thanks to Hansson that many other parents applying for apartments will benefit from the new clarity in the definition of which allowances are included in the income calculation.

It’s now official: child allowance is counted as part of an individual’s total income. Let’s keep our fingers crossed for Hansson and her girls.

 

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PROPERTY

How to ensure your French property is insured for storm damage

Storm Ciaran’s property-wrecking passage through France - with another storm forecast for the weekend - may have many people wondering how comprehensive their insurance cover is. 

How to ensure your French property is insured for storm damage

In the wake of Storm Ciaran, thousands of property owners in France are preparing insurance claims – with initial estimates of the bill for damage between €370 million and €480 million.

Home insurance is compulsory in France, whether you own the property you live in or you rent – and it must include some level of storm damage cover. 

Check also to see if your insurance provides cover in case of a declaration of a catastrophe naturelle.

The garantie tempête (storm guarantee) covers damage caused by violent winds. What constitutes a ‘violent wind’ varies from contract to contract, but there appears to be a widespread consensus of agreement on wind speeds over 100km/h.

In most insurance contracts, this covers damage caused by the storm and within the following 48 hours – so you’re covered if, for example, a tree weakened by the storm comes down within that period and damages your property.

Be aware that, while the storm guarantee automatically covers the main property, it generally only covers any secondary buildings and light constructions – such as a veranda, shed, solar panels, swimming pool or fence – if they are specifically mentioned in the contract. 

The same is true of any cars damaged by debris. A basic insurance contract might not include storm damage, so it is always worth checking.

Damage must be reported to your insurer as quickly as possible. The deadline for making declarations is usually five days after any damage is noticed. This is especially important for second home owners, who may not be at the property when the damage occurs. 

In some cases – such as in the aftermath of Storm Ciaran – insurers may extend the reporting period. But under normal circumstances, it’s five days after the damage has been discovered.

What happens next

To make a claim, the first thing to do is contact your insurer by phone or email. Your insurer will take you through the next steps, but usually you have to send in a declaration – which should include an estimate of any losses and for any repairs, with evidence where possible, such as photographs and any receipts for purchases. 

Your insurer may also request proof of wind intensity, which can be provided for example by a nearby weather station.

The insurance company may appoint an expert to come and assess the damage, so make sure to keep damaged property safe until they arrive, as well as all invoices for any urgent repair work. 

What if you’re a tenant?

If you rent your property, you must report any damage inside the accommodation to your insurer and also notify your landlord so that they can file their own claim. 

In the case of a co-propriete, you must declare damage inside the accommodation to your insurer, while the trustee sends his own declaration to the collective insurance (which sometimes covers the private areas) .

How long does it take for claims to be settled?

Payment of the compensation provided for by the “storm guarantee” depends your home insurance contract. After the insurer has estimated the amount of damage, compensation is generally paid between 10 and 30 days following receipt of the insured’s agreement.

What if we got flooded?

In the case of flooding, you may have to wait for a natural disaster order to be issued. 

Catastrophe naturelle

The ‘state of natural disaster’ is a special procedure that was set up in 1982 so victims of exceptional natural events, such as storms, heavy rain, mudslides and flooding, as well as drought, can be adequately compensated for damage to property.

The government evaluates each area and deems whether it qualifies for the status of catastrophe naturelle (natural disaster). 

Essentially once a zone is declared a natural disaster, victims can claim from a pot of funds created by all insurers. If the zone is not declared a disaster, insurance companies are under no obligation to pay out. 

Under a “state of natural disaster” residents are covered for all those goods and property that are directly damaged by the phenomenon, in this case storms.

It applies to residential or commercial buildings, furniture, vehicles and work equipment that are already covered by insurance policies.

Homes must be already covered by a multi-risk insurance policy for the status of natural disaster to count.

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