Home fire: which costs beyond your building and contents are insured?

Home fire: more than just belongings and building

When a fire strikes your home, most Dutch buildings ('opstal') and contents ('inboedel') insurance policies cover more than just the direct damage to the structure and your possessions. They often also pay for a range of additional costs that arise as a direct result of the fire. Think of clearing debris, finding alternative accommodation if your home becomes uninhabitable, hiring a loss adjuster, and taking measures to prevent further damage. This coverage is designed to help you get back on your feet quickly without facing unexpected bills. However, the exact cover varies from insurer to insurer and policy to policy. Some costs are standard, while others require an optional add-on or come with a specific maximum amount.

• Cleanup and debris removal (demolition and disposal of damaged parts)
• Temporary accommodation or emergency provisions (hotel, rental home)
• Damage mitigation costs (e.g., emergency repairs to prevent further loss)
• Loss assessment and expert fees
• Security costs for securing the damaged property

When extra costs arise on top of direct damage

Extra costs become especially relevant if your home is uninhabitable for an extended period after a fire, or if extensive clearing work is needed before repairs can begin. Even a smaller fire with significant smoke and water damage from firefighting can generate high bills. Imagine a kitchen fire that destroys the ground floor: the kitchen itself is ruined, the wall and ceiling are blackened, and the floor warps from water. Your insurer will cover the kitchen (buildings) and appliances (contents), but you also need the wreckage removed, the house dried out, and possibly weeks of alternative accommodation. That's when the extra cost cover plays a crucial role.

Take a family with two young children. Their rental flat becomes uninhabitable due to an electrical fire. The contents insurance covers the damaged belongings, but the family needs to move into a holiday park temporarily. Without a temporary accommodation module, hotel or rental costs can quickly reach hundreds of euros per night. Many contents policies offer reimbursement, but often with a daily cap and a maximum duration — for instance, up to €100 per day for a maximum of 30 days. So it's vital to know exactly what your policy covers.

What is usually covered or relevant

Most buildings insurance policies include basic debris removal coverage as part of the main sum insured. This can range from removing and disposing of ruined building parts to propping up a remaining wall. The coverage is typically a percentage of the rebuilding value — for example, 10% to 15% of the insured amount. It's important to note that this amount is paid on top of the actual rebuild costs; you don't receive less money for the rebuild because cleanup is also covered. In contents insurance, a comparable percentage often applies to removing the remnants of your belongings, such as burnt furniture or electronics.

A second major item is temporary accommodation. Both buildings and contents insurance can offer emergency shelter. For buildings insurance, this is often labelled 'loss of rent' or 'living expenses'; contents insurance may have a separate 'temporary housing' module. Reimbursement is usually tied to actual costs incurred for a replacement home, but with a daily or monthly cap. Some policies pay until you can move back into your restored home, others up to a maximum of, say, 12 months. For tenants, it's worth knowing that the landlord's buildings insurance often does not cover your relocation costs; that's where your own contents insurance comes in.

Mitigation costs — also called 'salvage costs' — are generally covered if they are reasonable. If right after a fire you hire a roofer to patch a hole in the roof so rain doesn't cause further damage, those expenses fall under the policy. The same goes for temporarily securing your house if it can no longer be locked. The insurer does expect you to coordinate these measures with them and to keep all receipts.

Expert fees — the cost of hiring an independent loss adjuster to assess the extent of the damage — are normally paid directly by the insurer. Both buildings and contents policies typically cover this without eating into your insured sum. Even if you appoint your own expert because you disagree with the insurer's assessment (a so-called 'contra-expertise'), this may be covered, provided you follow the procedure laid out in your policy.

*Please note: exact coverage differs per insurer and policy. Always consult your own policy wording and schedule.

What is often not covered or misunderstood

Not every type of smoke damage is automatically covered. If only smoke and soot damage occur without actual flames (for example, a chimney fire that doesn't spread), some insurers classify this under 'inherent defect' or 'gradual damage' and may not pay out. Additionally, some policies apply a separate deductible for fire damage or a higher excess for extra costs, meaning you pay the first part of those extra costs yourself even if the direct damage is fully covered.

Consequential loss after the fire is out may not be covered under the standard fire clause. For instance, food spoiling in a freezer that loses power after the fire is only covered if you have a specific 'food spoilage' add-on. Depreciation of your property's market value, even if perfectly restored, is not insurable; you won't receive extra compensation for the fact that your home now has a 'fire history'.

• Smoke and soot damage without direct fire: often limited or not covered.
• Own fault (e.g. fire from smoking in bed): usually covered under contents/buildings, unless gross negligence (intent or recklessness) is proven.
• Separate deductible for extra costs: some policies apply a higher excess for ancillary expenses, independent of the main damage excess.
• Damage to garden or paving from fire engines: often not covered under buildings insurance unless you have garden or grounds cover.
• Temporary accommodation exceeding the policy time limit: the insurer stops paying after the maximum period, even if your home is not yet restored.

What to check in your own policy

The best way to know what to expect is to read your policy documents with fire coverage in mind. Pay attention to sections on 'additional costs', 'extra cover' or 'optional modules'. Check the insured sums for both your buildings (rebuilding value) and contents (replacement value). If your insured amount is too low, the insurer may apply a proportional reduction to your extra cost payout as well. It's therefore wise to review your contents value annually using the contents valuation checklist and to let your buildings sum be indexed regularly.

Also check if your policy sets a maximum duration for temporary accommodation. Some policies cover up to 6 months, while a full rebuild after a major fire can easily take 12 to 18 months. In such a case, you might consider adding an extra module or comparing options — something you can discuss during a free commission-free buildings insurance comparison or commission-free contents insurance comparison.

Common mistakes with fire damage and insurance

After a fire, the first instinct is often to start cleaning up and salvaging what you can. While understandable, this can harm your claim. If you dispose of items without the insurer's consent, the adjuster may have difficulty establishing what was actually lost. Delayed reporting is another pitfall; most policies require you to notify them within a certain period, often within 48 hours. Many people also forget that damage to a car parked in the garage is not covered by contents insurance. You need to claim on your car insurance policy, which you might want to unbundle from a home package if that's cost-effective.

• Clearing up before the loss adjuster arrives: this can result in a partial denial of your claim.
• Reporting too late: many insurers set a notification deadline of 24 to 48 hours after discovery.
• Failing to take photos: without photographic evidence of your belongings, substantiating a contents claim is difficult. Take annual room-by-room photos.
• Assuming all extra costs are uncapped: a €300-a-night hotel room won't be fully reimbursed; insurers pay a market-conform rate.
• Ignoring underinsurance: by checking for underinsurance, you avoid losing thousands in both direct and extra cost payouts after a fire.

When it makes sense to have an advisor review

Especially after a traumatic event like a fire, it can be difficult to interpret all policy terms correctly. Even if you've never made a claim, having your cover checked beforehand is wise. This is particularly relevant if you've recently renovated your home, your family situation has changed, or you've bought a new property. An independent advisor can tell you concretely whether your current policies adequately cover extra costs, or if there are gaps you should address while you still can. If you're unsure whether you should engage legal assistance in a dispute with your insurer, a legal expenses insurance for rent and neighbour issues can be helpful — but be mindful of the waiting period. You need to have it in place before the conflict arises. As you can see, several insurances work together in a real-life damage situation.

With PolisMoment, you can easily request such an in-depth check. It works differently from a standard comparison site: you won't get a long list of prices, but one advisor who reviews your premium, cover, deductible and potential overlaps with you. There is no obligation to switch and nothing is resold. To learn more about the process, read how the free non-life insurance check works.