Insurance companies face costs of at least 900 million Norwegian kroner ($107 million) following the tragic landslide in Eastern Norway that is believed to have claimed ten lives.
On December 30, quick clay under the small village of Ask in Norway’s Gjerdrum municipality collapsed causing a road and many houses to collapse. The multi-day search and rescue operation was called off on January 5 after seven bodies had been recovered. Three other people still missing are presumed dead.
Economic cost of the tragedy
The early estimates of natural damage compensation costs are based on the known number of collapsed buildings and affected people. But the figures are uncertain and will likely change, according to Finance Norway and the Norwegian Natural Perils Pool.
“It will take time before appraisers can enter the area to get an overview of the damage so that we can make more accurate calculations,” said Stine Neverdal, Finance Norway communications manager.
It remains uncertain how many other homes in the area were damaged and if parts of the area around the landslide will be declared uninhabitable by the municipality. There is also uncertainty over other property damage, such as cars.