Insurance terms and conditions for Homebuyer Insurance
Terms and conditions of insurance of 1 October 2014
1. Who is covered by the insurance policy?
The insurance policy covers private citizens who have purchased an undeveloped plot of land or a residential property whose construction has been completed at the time of purchase, and who have taken out the insurance policy in connection with this purchase (hereinafter called the Insured).
2. What kinds of property purchase are covered by the insurance policy?
The insurance policy covers the purchase of undeveloped plots of land or homes in Norway, which are stipulated in the certificate of insurance and which are covered by the Norwegian Conveyancing Act. Here homes means permanent residence, commuter lodging or holiday home which is habitually used by the Insured himself and/or his immediate family. In connection with the purchase of agricultural properties, including smallholdings, only those matters relating to the farmhouse are covered by the insurance. In connection with the purchase of combined properties, HELP Forsikring (hereinafter called the Company) is liable only for losses relating to that part of the property which is regulated for residential use.
3. How long does the insurance policy run for?
The insurance comes into effect when the parties sign the contract, provided that the insurance premium has been paid at the time possession is taken of the property. Insurance coverage lasts for as long as the Insured is entitled to file a complaint under the terms of the agreement between the parties (purchase agreement with appendices, as well as information provided by the seller) and such legislation as applied to the sale of residential property at the time the purchase was made. The insurance does not cover claims submitted to HELP Forsikring after the Insured enters into an agreement (ie accepts an offer) for the onward sale of the property to a third party. The same applies to the transfer of title in connection with probate.
4. What is not covered by the insurance policy?
The insurance policy does not cover claims against anyone other than the seller (own sales force) of the residential property or the seller’s insurance company. Should the Insured wish to file a claim against another party, the Insured must himself, and at his own expense, ensure that the necessary steps are taken and, if appropriate, engage legal representation. Nor does the insurance cover other claims than those which may be construed from the purchase agreement, Conveyancing Act or general jurisprudence regulating relations between the buyer and the seller of the residential property concerned.
5. What costs are covered by the insurance policy?
The insurance policy covers necessary costs in connection with complaints and any legal disputes with the seller or transfer of ownership insurance, if the property is not placed at the disposal of the Insured at the agreed time or it is deemed probable that the property had one or more defects with respect to the purchase agreement and the Conveyancing Act.
6. Insured’s obligations
Should the Insured discover one or more issues with respect to the property which may constitute a defect, the Insured shall, as soon as possible after the potential defect was discovered, contact the Company and report the matter concerned. The Insured has a duty to keep all documentation relating to the purchase of the property and any defects, and produce these for the Company’s perusal upon request.
7. Company’s rights and obligations
The Company shall safeguard the Insured’s rights with respect to the seller in accordance with the purchase agreement and any applicable legislation relating to the purchase of residential property. The Company has a duty to handle the entire case and represent the Insured with respect to the seller of the property or the seller’s representative or insurance company.
Should the Insured wish the case to be handled instead by another lawyer of the Insured’s choosing, the Company must be notified thereof. Reasonable and necessary legal assistance performed for the Insured by another lawyer of the Insured’s own choosing is covered only after a specific application therefor has been submitted by the Insured.Terms and conditions of 1 October 2014
It is a proviso for the coverage of costs that the Company, no later than one week after conclusion of the case, has received a specified timesheet and schedule of any other costs associated with the case. Where a lawyer has represented the Insured in connection with legal proceedings relating to a dispute, the said timesheet and schedule of other costs must, under all circumstances, have been received by the Company no later than one week after the adjudicating body concerned has handed down a ruling in the matter.
The Company is not liable for legal costs which exceed the fees determined by the court. The Insured has a duty to request, at the behest of the Company, that the court determine the lawyer’s fees in accordance with Section 3-8 of the Disputes Act. Nor is the Company liable for costs arising in connection with any change of legal counsel.
Legal assistance is covered at an hourly rate capped at the fee level payable by the public administration (cf. Section 2 of the Remuneration Regulations).
In the event that the case is handled by a lawyer appointed by the Company, coverage also extends to any counterparty legal costs awarded and court fees in connection with litigation.
The Company’s liability is limited to necessary and reasonable costs.
The Company covers only necessary costs if the Insured has a claim against the seller which is likely to be upheld.
The Company may require the Insured to file a claim for costs against the counterparty. Any costs awarded shall fall to the Company.
8. Complaints board
If the Insured disagrees with the lawyer’s assessment of the likelihood of the claim being upheld, the Insured may request that the decision be reviewed by an independent complaints board. The board shall comprise three people, of whom at least one shall have experience from a consumer organisation or public agency dealing with consumer affairs, and at least one shall have legal expertise. Adjudication by the board is without cost to the Insured.
The board decides whether the matter shall continue to be pursued at the Company’s expense, or be terminated. The Insured shall be notified of the outcome of the board’s assessment. The board’s chair is entitled to dismiss complaints which will clearly not be upheld.
If the Insured chooses to pursue the matter by himself and at his own expense, and his claim against the seller is upheld, necessary costs will be reimbursed. The assessment is made on the basis of the Disputes Act’s provisions relating to the determination of legal costs.
9. Insurance deductible
The Insured pays no insurance deductible.
10. Background law
Act No. 69 of 16 June 1989 on Insurance Contracts (Insurance Contracts Act) applies to this insurance policy.