Last Updated on Mar 31, 2022 by James W

Is your roof leaking? Are you coping with a burst pipe? Unforeseen events, such as water damage, frequently occur in Norwegian households.

Therefore, homeowners should have home insurance that covers different forms of household damage. When having insurance, your water damage will probably be covered by the policy. In case it doesn’t, you must provide the necessary funds to cover the repairs on your own.

The more time is wasted, the more severe the damage. Obtaining a loan is the quickest way to pay for the repairs.

Learn more about the loan options homeowners have in detail.

Paying a deductible

Homeowners who have insurance that covers water damage are still expected to pay a deductible, which ranges from a thousand to ten thousand kroner, depending on the insurance agreement. The insurer is also likely to demand an increased deductible if the damage happened because of negligence.

Small deductibles can be usually paid without borrowing any money, which isn’t the case with higher deductibles. When borrowing less than NOK 20,000, you shouldn’t spend more than a year on repaying. The following article,, explains what an insurance deductible is.

What if your insurance doesn’t cover the damage?

In cases where home insurance fails to cover water damage, the expenses are usually too high for homeowners. For instance, a leaky roof might cost over 100,000 kroner to get repaired. If there are cracked pipes in your kitchen, you would probably need to buy new fittings that got damaged from the water. Consequently, fixing damage can prove too expensive for the budget of homeowners.

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Nevertheless, individuals are provided with other opportunities which have nothing to do with relying on their budgets. Personal loans’ flexibility makes these products a popular alternative for home renovation projects. Homeowners can apply for five hundred thousand kroner, which can be repaid in five years. This sum is enough to cover water damage repairs and more.

Another possibility is to use the consumer loan for home improvements, then get a new rate, and refinance the mortgage. It reduces the loan-to-value ratio of your home and helps homeowners get the loan into the mortgage.

Consumer loan alternatives

If personal loans aren’t your choice of preference or you are facing a rejected application, there are several other alternatives to consider, including credit cards, secured loans, private loans, refinancing, small loans, and microloans. The credit card option provides access to a specific framework through the online bank. Homeowners can request a limit of 1,000 to 150,000 kroner.

Individuals might be granted both high and low limits depending on their debt situation and personal income. Unlike loans, borrowers don’t have to repay a higher amount than they actually spend. For example, if your credit line is NOK 75,000, but you only use 20,000 kroner, you’ll repay the latter sum.

People who own a home should consider secured loans as an option, which require a guarantee. Banks take a mortgage on the property to use as a loan guarantee. By providing security, homeowners can acquire better interest conditions and borrow up to eighty-five percent of their home value. Once the installments are repaid, the deposit will be canceled.

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In contrast, private loans are provided by family members and friends. These are substantially cheaper, given your family and relatives won’t demand interest from you. On the positive side, you won’t deal with banks, which makes the borrowing process easier.

Refinancing or increasing the mortgage can assist homeowners in paying for water damage repairs. If the mortgage you have is less than 85% of your home value, you can increase the mortgage according to the repair costs. Make sure the interest rate and payback period remain unchanged.

Conversely, small loans are a form of unsecured credit where the borrowing limitation is low from 1,000 to 70,000 kroner. The effective interest of these bank products is a bit higher, but the payback term can be shorter. You can pay the funds back in a period of 1 month to 5 years.

Microloans are the smallest funds offered on the market. Nevertheless, the same cannot be said about the percentage of interest. The borrowing limits are set between a thousand and twenty thousand kroner with a possibility for repayment of twelve months. Microloan interest rates are from 200% to 300%, which makes them the priciest financial products in the market.

Criteria for obtaining a loan

Homeowners coping with water damage need to meet certain criteria to get their applications granted. This set of criteria requires them to be eighteen years old, have a steady income, meet the income requirements of the bank, be members of the Norwegian National Insurance Scheme, have a Norwegian phone number, and have no ongoing debt.

The membership of the Norwegian National Insurance Scheme can be acquired in two ways. The first method is through the population register. If a person is born in Norway, he/she automatically becomes a member of the insurance scheme. The second method is through living, working, and paying taxes in Norway. If a person has done these things in the previous three years, he/she will become a member of the insurance scheme as well.

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Voluntary membership is feasible during stays in Norway and stays outside of Norway. If you intend to stay in Norway between three and twelve months while not working but having strong ties, you might be entitled to voluntary membership in this scheme. Conversely, if you already have a membership but plan to stay abroad, this stay might mean that your membership will end. In case it does, you might get voluntary membership during your stay in a foreign country.

Considering the above-mentioned factors is necessary before sending out applications. If hoping to søk best forbrukslån, make sure you meet the required criteria. Otherwise, you will be wasting your time without anything in return.

In conclusion

Although no homeowner wishes to borrow unplanned money, water damage leaves no choice.

The consequences of delaying the needed repairs are much more serious!


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