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Danish house prices reach highest ever level, beating 11-year record

House prices in Denmark have never been higher, with the cost of a buying home now above the previous record set in 2007.

Published: 18 March 2019 10:47 CET

Danish house prices reach highest ever level, beating 11-year record

File photo: Mathias Løvgreen/Ritzau Scanpix

Finance Denmark, an interest organisation for the banking and financial services industries, published the new figures which show house prices to have reached an all-time high.

House prices increased by 4.2 percent nationally in 2018, with the average price of a 140-square-metre-house reaching 1,923,000 kroner (257,000 euros).

The price represents the highest figure for the category since records began in 1992.

“The housing market is doing well, and houses are now being sold for the highest prices ever. Prices are increasing in most of the country and plenty of sales are being completed,” Nordea housing market economist Lise Nytoft Bergmann stated in a written comment.

“We expect this positive trend to continue and house prices to continue to go up in 2019 and 2020,” Bergmann added.

A steep regional variation can be seen in Denmark’s house prices, with the price of a 140-square-metre-house in Copenhagen over 5 million kroner, compared to 1.2 million kroner in western Jutland and 990,000 kroner on the Baltic Sea island of Bornholm.

But although the current prices are at a higher amount than anything previously recorded, actual value is 14 percent lower than in 2007, due to inflation.

The housing market is considered to have been overheated in 2007, the year prior to the global financial crisis. But Bergmann said she did not see the same economic warning signs in the current market.

Lower interest rates mean that mortgages are effectively cheaper than they were 12 years ago.

Additionally, Danes have, on average, better salaries than they did in 2007, improving their chances of being able to finance the purchase of a home.

READ ALSO: Increase in apartments for sale in Copenhagen: report

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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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