Norges Bank identifies 13 percent of Norwegian homes exposed to weather risks

Norwegian weather patterns are changing, leading to a marked increase in insurance payouts in recent years.

While Norway benefits from high insurance coverage and a collective scheme for natural perils, other types of damage have also become more frequent.

The study highlights that approximately 13 percent of Norwegian homes are located in areas particularly exposed to natural perils and other weather-related damage, representing 11.5 percent of the total value of Norwegian homes.

This includes long-available data on flooding, avalanches, landslides, and storm surges, now supplemented with data indicating stormwater intrusion risk.

The authors note that a rise in weather-related damage in the coming years may lead to increased costs for homeowners and potential challenges for financial stability.

Insurance payouts for weather-related damages, especially storm and flood, have significantly increased over the past two decades.

Payouts for stormwater intrusion also rose markedly between 2008 and 2024. This surge in claims has led to home insurance premiums rising over 60 percent since 2016. Additionally, municipal fees have more than doubled in the last decade, nearly doubling average homeowner costs to NOK 30,000. These rising costs can negatively impact house prices and weaken households' debt servicing capacity, increasing default risk.