One of the most common forms of damage in a housing company is damage caused by leaks. It is mostly caused by leakages from dishwashers, heating systems, ventilation machines and roof coverings. Pohjola Insurance statistics show that, along with fires, leakages from domestic water and water used for heating are the most costly causes of damage.
The same statistics also show that, in recent years, damage from leaks has been most frequent in housing companies built between 1989 and 1994. A part of the damage is caused by the housing companies postponing necessary renovations.
"As late as in the 90s, service water pipelines were often made of copper. Copper pipes reach the end of their service life in about 30 to 35 years. Back then, bathrooms were still built without the current regulatory requirements on waterproofing, and these bathrooms are starting to reach the end of their service life," Pohjola Insurance's property insurance director Markus Uimonen says.
It is good practice to draw up the housing company's long term repair plan for a longer period than the 5 years required by law, even for a period of over 10 years. This is how housing costs can best remain predictable. The planning and scheduling of critical renovations is an important part of real estate maintenance and the retention of value.
A large backlog of repairs can have accumulated, especially in the housing companies of the 1960s and 1970s, if renovations have been postponed.
A backlog of repairs increases the risk of loss or damage and can also affect insurance compensation
Damage to housing companies occurs more frequently when necessary renovations have not been completed in good time. If a building is in poor condition or has structural shortcomings, it is more susceptible to damage.
With the growing frequency of extreme weather events, facade and window renovations can become topical earlier than expected. Increasing rain and wind put particular strain on the facades and roof coverings of buildings.
"Maintenance work and necessary renovations are also important in terms of eligibility for insurance coverage. If the damage is caused by the neglect of necessary actions in the real estate, the damage may be deemed as not unforeseeable, which affects the eligibility for insurance coverage," Uimonen says.
A backlog of repairs accumulated by the housing company can also affect the insurance cover granted to the real estate.
"If the housing company has a significant repair backlog and the buildings are in poor condition, insurance companies can determine that the housing company's risks are higher. This can lead to higher insurance premiums, deductibles or limited insurance cover," Uimonen says.
The claims history can also affect the insurance cover to be granted. If the housing company has had several claims, the insurance company can consider the property to be at risk and can limit the insurance coverage.
"in some cases, the insurance company can also demand certain remediation actions or enhancements before granting the insurance," Uimonen says.
The most common critical renovations to be performed by housing companies:
- Plumbing renovation: every 30–50 years
- Facade repair: renewal of concrete element joints every 20–30 years, repair of brick-clad facades every 40–50 years
- Roof renovation: renewal of felted roofs every 20–30 years, repair of brick roofs every 40–50 years
- Window renovation: renewal of windows and outer doors every 20–40 years
- Heating system renewal: every 20–30 years
- Ventilation system maintenance and renewal: maintenance every 5–10 years, renewal every 15–20 years
Media enquiries:
OP Financial Group Communications, tel. 010 252 8719, viestinta@op.fi