More Danish homeowners fear their insurance will vanish as climate change drives up flood and storm damage costs, threatening to leave the most exposed houses uninsurable.
Rising Climate Risks Leave Families Vulnerable
When torrential rain struck the small town of Låsby in 2023, Hanne and Aage Juul Nielsen’s home flooded after just an hour and a half of nonstop rain. Seventy-one millimeters fell in that short time, flooding their red brick house and garage. The couple lost heirlooms and family photos, and their insurance company later refused to cover future flooding.
They are far from alone. Across Denmark, more households worry about whether their homes can still be insured against intense weather. According to new figures from the insurance association Forsikring & Pension, about two-thirds of Danes now fear it will soon become harder and more expensive to insure against climate-related damage.
Insurance Premiums Keep Climbing
Heavy rainfall, storms, and coastal flooding have become more common, and insurance data show a sharp rise in “climate damage” claims such as basement flooding and water seeping through walls. The number of cloudburst damage claims has nearly doubled since 2015. Some homeowners have suffered repeated losses from the same type of weather event.
Prices have kept up with the trend. A 2024 review by Denmark’s consumer council Forbrugerrådet Tænk showed that the average home insurance policy rose by up to 27 percent in just two years. Many policyholders also received warnings from their insurers that rates would double to maintain full coverage against water, fire, and storm damage.
For families living in low-lying or coastal areas, being insured at all can soon become a challenge. In several U.S. states and other parts of Europe, insurance companies have already pulled out of high-risk zones. Danish industry leaders warn that this could happen domestically too if repeated flooding and damage continue.
Billions Promised for Climate Defense
The Danish government has pledged nearly two billion kroner for new climate and coastal defense projects through 2029. Plans under the so-called acceleration package for coastal protection are meant to shield vulnerable regions from violent storms and rising sea levels.
That investment is an important step, but experts believe it is not enough. Forsikring & Pension has urged the state to spend at least three billion kroner annually on flood prevention, plus establish a national climate adaptation plan and a state climate fund to secure long-term financing.
Balancing Responsibility and Costs
Insurance companies argue they are doing what they can, supplying weather alerts and guidance on how to minimize risks. However, they maintain that homeowners must take basic precautions too, such as installing flood barriers or high-water locks in basements. Municipalities are responsible for maintaining drainage systems, and the state must handle large-scale infrastructure investment.
Meanwhile, heavy rainfall and storms keep putting pressure on both families and insurers. More Danish homeowners report higher stress levels connected to unpredictable weather and growing repair bills. Because of that, the debate around how to divide the responsibility between citizens, companies, and the government is heating up.
Waiting for a Long-Term Fix
Environment Minister Magnus Heunicke has admitted that Denmark still lags behind in climate adaptation. The government’s upcoming “Climate Adaptation Plan II” is expected to include new funding and a coordinated national effort to strengthen flood defenses.
In Låsby, the Juul Nielsens found a new insurer willing to cover them again, but only for up to three future incidents of the same kind. Living in an area where stormwater gathers from nearby fields and highways, they know another flood could come at any time. They hope the country’s new efforts will make a difference before then.
Sources and References
The Danish Dream: Danish Flooding Sparks Urgent Mold Health Warning
The Danish Dream: Best House Insurance in Denmark for Foreigners
TV2: Flertal frygter for fremtidens forsikring mod skader fra voldsomt vejr
