As well as laying great swathes of agricultural land to waste, the summer heat of 2018 caused a lot of damage to people’s homes.
When the land dries out, houses tend to settle on their foundations, and this can result in serious cracks in walls, floors and brickwork that are not covered by standard insurance policies.
Step forward GF Forsikring – a Danish firm that has launched a drought insurance that can be bought as a supplement to a house or summerhouse insurance policy.
“The tendency is towards even more extreme weather, so we felt that we’d like to make our contribution if another summer like last year should come along with its accompanying drought,” the company’s administrative director, Jesper Mortensen, told TV2.
The premium is 100 kroner per year but there is also a deductible on the first 20,000 kroner’s worth of damage. After that, and assuming various conditions are met, the policy will pay up to 150,000 kroner to repair damage.
One condition is that the drought index calculated by the DMI weather forecaster shall have averaged nine (on a ten-point scale) in the municipality where the house is situated, and that the drought has lasted a minimum of 30 days.