Change of Ownership Insurance is when you – for a fee – delegate liability for potential hidden defects and deficiencies in the home you are selling to an insurance company. An investment that gives you peace of mind when selling your home.
Why is Change of Ownership Insurance a good investment?
According to the Norwegian Alienation Act (Avhendingsloven), as a seller, you are liable for major hidden defects or deficiencies for five years after selling your home. Change of Ownership Insurance covers you financially for this responsibility. Should the buyer of your property become entitled to compensation, Protector will pay the applicable damages. These types of damages often involve large sums, even hundreds of thousands of kroner. You will have to pay these damages if you do not have Change of Ownership Insurance. Remember: even if you have lived in the home for many years, it may have defects you are unaware of.
With Change of Ownership Insurance, you also avoid having to deal with the buyer of your home in the event of a compensation claim. Protector manages every step of the claims process for you. It is worth remembering that as many as one in seven buyers files a claim on their new home.
How do I buy Change of Ownership Insurance?
You can buy Change of Ownership Insurance through your real estate agent, in which case the insurance is paid as part of finalising the sale of your home. You will need to complete a declaration form linked to the home, which requires you to provide information (duty of disclosure) in accordance with the Norwegian Alienation Act.
For more information on Change of Ownership Insurance, please download our product data sheet.