Broken tap causes water damage in Finnish care home – residents now required to have home insurance

Five of Finland’s wellbeing services counties now require residents in round-the-clock care to take out home insurance, following a costly water damage incident in a care facility in South Savo, reports Yle.

A broken tap in a care home in South Savo last year caused significant water damage after leaking beyond a sink basin, leading to moisture damage in multiple apartments. The incident prompted the South Savo Wellbeing Services County (Eloisa) to mandate home, legal protection, and liability insurance for all residents in its care facilities starting this year.

The county’s own insurance may not cover damage caused by a resident’s negligence, leaving either the wellbeing services county or the resident responsible for the costs. Veli-Matti Thure, director of facility and support services, stated that relatives had expressed concerns about potential compensation claims, and the new policy aims to reduce this worry.

“Home insurance provides security, just as it does in rental housing,” Thure said.

The damaged tap, which malfunctioned and allowed water to overflow, will be covered by the property owner’s insurance. However, Thure defended the broader requirement, arguing that it standardises practices across public and private care homes—many of which already require residents to have insurance. Around half of Finland’s elderly in 24-hour care live in private facilities.

For a small studio-sized care apartment, insurance costs less than €100 per year, though the expense is ultimately covered by the wellbeing services county. In round-the-clock care, residents’ fees are calculated by deducting rent, insurance, and medication costs from their income first.

From the county’s perspective, resident insurance could yield substantial savings if it covers major repairs. “Do we accept that such costs should be paid from public funds?” Thure asked.

Five wellbeing services counties now require care home residents to have home insurance, while over half recommend it. However, the Office of the Elderly Ombudsman criticised the shift, calling it a transfer of responsibility. Specialist Vilhelmiina Lehto-Niskala noted that few elderly in full-time care can manage such matters independently.

“Most need assistance to obtain and maintain insurance,” she said. Typically, a legal guardian handles insurance affairs, but delays in granting power of attorney—especially for those with dementia—can leave residents uninsured.

While most incidents in the county’s care homes have been minor (e.g., broken glasses or dentures), Thure acknowledged that collecting compensation for such damages has not been standard practice.

South Savo’s new care home in Mikkeli’s city centre will open in April.