Why you need home insurance

Buying a house is one of the biggest investments you will make. It is therefore important to protect this investment well. With a building insurance you insure your house against damage from fire, storm and burglary.

What is a building insurance?
The building insurance provides coverage for all items that are attached to the house. This should not be confused with the contents insurance; this covers the items that are not fixed to the house. With building insurance you can choose from different types of coverage:

A fire insurance; this is coverage against fire, explosion and lightning.
An UGV-insurance; this Extensive Hazard Insurance offers extra coverage against theft, vandalism, aeroplane crashes and storm damage with wind force 7 or more.
An UGV+-insurance; this extra Comprehensive peril insurance covers besides the above also coverage for water damage, hacking and breaking to find a water pipe and against scorching, burning and melting damage.
Is buildings insurance compulsory?
If you own a house with a mortgage, you have to take out building insurance. This is often a requirement of the mortgage provider. The house serves as collateral for the mortgage, and if the house is irreparably damaged, the mortgage loses both the money and the collateral. If you rent a house, it is often the owner of the house who takes out the building insurance.

Home insurance for buying a flat
For the flat there are often slightly different rules. The building insurance is taken out by the Owners’ Association. This means that a joint insurance is taken out to insure the apartment complex. However, if you increase the value of your flat by installing a brand new, luxury kitchen, for example, it is wise to take out additional building insurance that also covers a higher value. Sometimes there is a dormant Owners’ Association and no building insurance has been taken out. The best thing to do then is to see if a building insurance can be taken out for the entire complex. Alternatively, you can take out buildings insurance for your own flat.

What exactly is covered by the building insurance?
The building insurance covers everything that is fixed to the house. For example the toilet, fireplace, central heating and pipes. Often fences, sheds, solar panels and glass are also covered. As each insurer may offer different conditions, it is always wise to check what exactly is covered.

What is not covered by the building insurance is everything that is separate from the house. So basically everything that you can take with you when you move. The sofa, the kitchen table and digital devices are not covered. To insure these, you can take out contents insurance. It is also always worthwhile looking into taking out home insurance. This includes both the building and the contents insurance, but you also get liability insurance.

What does a home insurance cost?
How much you pay for a building insurance depends on a number of factors. For special buildings, such as monuments, different premiums and conditions apply. The factors that are taken into consideration are, among others:

The state of maintenance
The construction of the home (a thatched roof is often not covered)
The place of residence
The reinstatement value
The amount of your own risk
When you do not receive compensation
You will not receive compensation in all cases, even if you are insured and pay your premiums. If the damage was caused deliberately, or if there is overdue damage, the insurance does not have to pay out. It is your responsibility to ensure that the house is and remains in good condition. Make sure that loose roof tiles are fixed and that the roof of the shed remains in good condition.

Take out the building insurance
You should always think about what exactly you want to insure. If you want full coverage, a home insurance might suit you. Perhaps you would like to take out glass insurance in addition to home contents insurance, so that any broken windows are covered. Do you opt for excess, do you omit excess or do you choose a higher excess to pay less premium? Take a good look at the conditions of the different insurances so there are no surprises.

We are often inclined to think that something will never happen to us. But if major damage occurs to the house, this can have major financial consequences. So take your time to think about which insurance policy suits you and which conditions and premiums go with it. That way, you won’t have to worry about any damage to the house during the next storm and you’ll have peace of mind for the future.