Abstract
This paper aims to address the increasing risk of water and flood damages, study regulations of insurance with regard to these damages, and how to strengthen the insurance items to deal with the challenges in a changing climate and dynamic society. Water-related damages are categorised into several types according to the regulations for insurance in Norway: Water-pipe damage, water damage and damages caused by natural disasters, e.g. storm, flood and storm surge etc. Water pipeline damage is included in the insurance for “House and Home”. It means the damage caused by a sudden and unforeseen water flow, or other liquid from building’s pipelines with connecting equipments due to break, leakage or inundation, which is under the condition that water or liquid comes from: · Buildings’ pipeline networks because of pipe break or failure in a gasket · Connecting equipments, e.g. washing machine, warm water container or dish washer Water damage is however different. When water comes directly from, e.g. a wash tub, rain or perhaps snow melting and the damage that can lead to, instead of from a water pipeline, the damage will not be included in the insurance for house and home. Moreover, damage due to water mess or leakage that is to be blamed for construction errors such as bad flagging in the bath room will not be indemnified, either. Which type of insurance and associating rules will be applicable to deal with these types of damage then? Flood is treated as one of the natural disasters. It is defined when the streams, rivers and lakes (or other water bodies for detention or retention) are over their capacities (inundated), water will release from the border of the water bodies, and as a consequence it may causes damage to exposed victims (e.g. people and livestock, buildings and properties, farm lands and the environment etc, so called flood damage). Flood damage is regulated by the Act on Natural Damage Insurance. However, damage whose immediate cause is