Denmark Building Damage Tender

The Building Damage Fund for Building Renewal BvB faces a major challenge. Due to fewer urban renewal activities and thus decreasing payments to the BvB the funds finances are under pressure - and this is further pressurized by the re-prioritization of the state urban renewal framework for the village pool with the 2019 Finance Act.This means that without external intervention the fund is expected to run out of funds within a number of years after which the fund will be forced to stop its activities. This will cause owners of urban renewed property to lose their current insurance coverage regarding construction damage. In order to create security for the insurance coverage of the building owners who are currently covered by the BvB the fund is merged with the Building Damage Fund in the general area BSF for a gradual settlement over a number of years. It supports all parties in the Parliament.The merging of the two fund areas is an expression of timely care and is a necessary consequence of the redevelopment of the urban renewal funds with the 2019 Finance Act for village renewal. In order to create as much security as possible for the building owners and their tenants it has been necessary to enter into an agreement on the future economy of the fund and it is therefore positive to see that a broad majority in the Folketing supports the decision says Housing Minister Kaare Dybvad Bek. The settlement means that BvB is closed down as an independent entity. This means among other things that the Funds Board of Directors is closed down and that the Funds current assets and liabilities are transferred to BSF.The existing insurance cases are transferred to a separate department with watertight bulkheads to BSFs other departments. Since each department is only liable for its own cases the existing departments in BSF will not incur losses as a result of the transfer. The liquidation of the BvB also means that any municipal undertakings for building renovation works after the laws entry into force will no longer be covered by building damage coverage and overhaul. This is done to ensure that the Funds financial obligations are not further increased. The details of the settlement business will be organized in cooperation with the funds.