The insurance companies that offer home seller insurance, formerly known as ownership change insurance, have learned little from the defeats they have suffered in the past, according to both the Norwegian Estate Agents’ Association and the Financial Complaints Board. In 15 of the last 30 cases this autumn, the consumer won. These 15 house buyers secured a total of several million kroner in compensation after proven errors and defects in the home they bought. These are excerpts from some cases we found in the board register of the Financial Appeals Board: “Damp and mold in the downstairs. Unprofessional solutions in the bathroom. Buyer’s requirements; NOK 900,000. The Financial Appeals Board partially agrees; awards the buyer a price reduction of NOK 650,000” Jørn Ingebrigtsen, CEO of the Financial Appeals Board. Photo: Finansklagenmenda Even those who discover minor damage to the home win against the insurance company. “Failure to fall in the bathroom, water flows out of the shower. Claim: NOK 60,000 for improvement. Receives support from the Financial Complaints Board.” – It is clear from our point of view that the companies do not follow the practice that the tribunal has set out in relation to understanding the legislation. This is confirmed by Jørn Ingebrigtsen, managing director of the Financial Complaints Board. A house can no longer be sold “as is” as was often advertised before. Photo: Bernt Olsen / Bernt Olsen Win even more cases this year The statistics are clear. Last year, consumers won in 51 percent of the approximately 800 cases that they reported to the Financial Complaints Board after discovering errors or deficiencies. This is a sharp increase from 2019, when consumers only won in a third of the cases. And the increase continues. So far this year, 68 per cent of the cases have gone “in favor of the consumer”, as it is called in the statistics from the Financial Complaints Board. – Measured against travel insurance, home insurance and car insurance, the number of cases involving ownership is far higher. It says something that the level of conflict in the change of ownership cases is higher than in the other insurance products, says Ingebrigtsen. Carl O. Geving, managing director of the Norwegian Association of Estate Agents. Photo: Joakim Karlsen He is accompanied by Carl O. Geving, managing director of the Norwegian Association of Estate Agents. – If half of the cases that come to the Financial Complaints Board go “in favor of the consumer”, it may indicate that the insurance companies involved should have made more effort to resolve the case in negotiations with the buyer, says Geving. Companies repeat themselves A brief review of the cases shows that there are quite a few insurance companies that are repeat offenders in the conflicts. – Homeowners insurance is a product where there is little competition. There have been a number of new players on the scene, but they have not gained large market shares yet. We can be clear that there are three companies that generate the vast majority of cases, and they are also the ones with the largest market share, confirms Jørn Ingebrigtsen in The Financial Appeal Board. The Disposal Act was amended last year, and a house can no longer be sold “as is” as it was often advertised before. Finans Noreg represents the insurance company in the Financial Complaints Board. Communications director Tom Staavi rejects that there are unscrupulous actors in the industry, but realizes that it is a problem that the companies do not seem to have learned from previous cases. Tom Staavi is communications director at Finans Noreg. Photo: CF Wesenberg / Finans Norge – It is obviously not good when there is a high retention rate for consumers over time, Staavi admits. He still thinks the development can be explained. – We must respect the fact that these are quite complex matters. There are consumers on both sides, the cases are probably largely different, and there are a number of discretionary assessments here. Most of these cases are about hidden faults and deficiencies in older houses. Then the question arises; Should the seller know or know about the defects that appear later? Shouldn’t accept the first answer The many conflicts that still win for consumers give hope to others who refuse Tone Molvær Berset is legal director of the Consumer Council. Photo: Press image / The Consumer Council to take the conflict with the insurance company all the way to the Financial Complaints Board, says Legal Director of the Consumer Council, Tone Molvær Berset. – This can be something for consumers to take with them, yes; that one does not necessarily accept the first answer from the insurance company. She is not surprised by the development where consumers are increasingly coming forward with claims for compensation. – We have seen this over several years, and we think the explanation may lie in the fact that the law is unclear, says Berset.
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House buyers win more often than insurance companies – news Norway – Overview of news from different parts of the country
