The Danish Building Defects Fund


The Fund comprises approximately 210.000 publicly subsidised housing estates, youth housing, and housing for the elderly, privately owned co-operative housing associations, and co-operative house shares. At the beginning of 2011 the Fund had a holding of 220 million Danish kroner (DKK), of which 130 mill. DKK were reserved to cover repairs in more than 130 ongoing repairs of acknowledged building defects. About half of these defects claims had been filed concerning estates erected prior to 1995. The Fund covers all building defects claims for the first twenty years and, as such, the oldest buildings comprised by the Fund are no longer covered by the Fund.

The buildings, which are covered by The Building Defects Fund, comprise some 40% of all construction of residential housing schemes since 1987. Measured in square footage, the buildings covered by the Fund, make up less than 20% of all building since 1987, be it business, public, or social housing schemes.


The purpose of the Fund is:

  • To carry out the year-one and year-five building inspections
  • To give financial support to the repair of building defects
  • To communicate findings and experiences to the building sector with the purpose of preventing future building defects.

The Fund's expenses are covered by the grants of 1% of the initial construction costs from every housing scheme, as mentioned above.