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Swedes expect higher house prices: report

Around half of Swedish households expect house prices to continue to rise with only a fifth expecting a fall, according to a new survey published on Monday.

Published: 6 September 2010 14:00 CEST
Swedes expect higher house prices: report

Households furthermore expect repo rates to settle at around 1.2 percent in a year’s time and the proportion of people planning to switch to a fixed rate mortgage has dropped for the second consecutive month, according to the SEB bank’s property price indicator for September.

“Households remain cautiously optimistic with regards to the development of house prices. Neither the knowledge that interest rates will climb or that a mortgage ceiling is set to be introduced have had any effect,” said Gunilla Nyström, an SEB analyst, in a statement on Monday.

Forty-nine percent of respondents expect house prices to increase over the coming year, up marginally on 48 percent in August. The number of those expecting a fall remained at 18 percent.

The number of respondents expecting prices to remain unchanged declined to 24 percent, from 27 percent in August.

Nyström explained that indications that the Swedish economy is recovering have boosted optimism among households and across the housing market.

“There is a strong momentum within the Swedish economy and households have an optimistic view both on the national economy and their own private finances,” she said.

The SEB property price indicator is published monthly and is defined as the difference between the proportion of households expecting higher prices and the proportion expecting falls. The indicator for September comes in at 31, up a unit on August.

Households on average expect the repo rate to rise to 1.19 percent in 12 months time, up from 1.13 percent in August.

The survey was carried out prior to the recent 0.25 percentage point rise in the base rate announced by the Riksbank last week and indicates that households expect the bank to ease its interest rate forecast.

“Households realize that interest rates are on their way up but they don’t believe that it will go up as fast as the Riksbanken forecasts,” Gunilla Nyström said.

The report also showed that 11 percent of households with some or all of their mortgage lending on variable interest agreements plan to fix their loans within the coming three-month period. This number has declined from 14 and 17 percent in August and July respectively.

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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. 

Published: 3 November 2023 15:45 CET
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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