Damage caused by a handyman or contractor: your insurance or theirs?

When does this happen: from small repairs to major renovations

Imagine you hire a handyman (klusjesman) to fix a leak, but he accidentally damages a pipe and causes extensive water damage. Or a contractor (aannemer) installs a dormer window and damages the roof structure, leading to secondary damage to your belongings. In such cases, the immediate question is: does this fall under my own buildings insurance (opstalverzekering) or contents insurance (inboedelverzekering), or should the contractor pay from his own liability insurance? The answer is rarely simple, because it depends on the exact circumstances, your policy wording, and the agreements you have with the contractor (for instance, via a quote or contract). It also matters whether you are dealing with an uninsured odd-job man or a formal contractor with a business liability policy.

Moreover, you must be aware of your own duty to notify: some buildings or contents insurers require you to report renovations or major work in advance. If you don't, cover for damage may be void, even if the damage was caused by the contractor. And if your own insurer covers the damage, they may seek recovery from the liable party, which can affect your no-claims discount if a vehicle is involved. In short, a tangle of rules that we will unravel step by step.

Quick answer: who is usually liable?

In general, a professional contractor is liable for damage they cause during their work, based on breach of contract or tort (articles 6:74 and 6:162 of the Dutch Civil Code). This means they should in principle bear the repair or replacement costs. In practice, many recognized building firms and tradespeople carry a business liability insurance (AVB) for this purpose. However, if the contractor has no insurance, or the damage results from an unfortunate coincidence without a clear fault, things become more difficult. Sometimes you fall back on your own buildings or contents insurance, provided the cause is covered by your policy.

What your own insurance typically covers

You probably have buildings insurance (opstalverzekering) and/or contents insurance (inboedelverzekering). If damage to your home or belongings occurs through a sudden event that falls within your policy conditions, your insurer may pay out, even if a third party caused it. For example, a handyman drops a hammer drill on your hardwood floor. That is often a 'sudden external event' that your buildings insurance (or contents, depending on what is damaged) can cover. Note that the insurer may subsequently seek recovery from the perpetrator if they are at fault. But the payout to you is independent of the liability question.

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

As you can see, it is often a combination: your own policies can be a first safety net, but they may also contain specific exclusions around renovations or work carried out by third parties. Always read the fine print, especially the sections on 'exclusions' and 'safety measures'. If you have not reported the renovation, the insurer may deny cover afterwards. For a major renovation, it is therefore wise to contact your insurer in advance, as we also describe in our article on notifying your buildings insurer about renovations.

The contractor's liability insurance: when do they pay?

When a recognized contractor or tradesperson causes damage through a fault in their work, they are professionally liable. Most professional construction and maintenance firms carry their own liability insurance (a business liability policy, AVB) that covers damage to your property. This is not a legal requirement, but it is common practice in the sector. If you can demonstrate that the damage was directly caused by their actions or omissions, you can hold them liable. In that case, the claim goes through the contractor's insurer, not your own. That saves you the deductible and a potential premium increase on your own policy.

As a homeowner or tenant, you have no control over the exact cover of the contractor's policy. That is why it is wise for small to medium-sized jobs to make clear agreements beforehand and check the quote for a liability clause. Your own personal liability insurance (AVP) plays almost no role here, as it typically covers damage you cause to others, not damage caused to your own property by a hired professional. If you have doubts, legal expenses insurance can assist with disputes over liability.

What is often not covered (and why)

• Damage from wear and tear, inherent defects or poor maintenance: both your own insurance and the contractor's rarely cover consequential damage if the cause was faulty materials or neglected upkeep.
• Indirect consequential loss, such as loss of income if your home becomes uninhabitable: this is often excluded in standard buildings and contents policies; you would need separate modules.
• Damage during an unreported renovation: many policies require notification for major work; failing to do so can result in full denial of cover.
• Damage caused deliberately or through gross negligence by the contractor: recovery can be difficult even then, although your insurer may pay out and then take recourse.
• Damage to the contractor's own business equipment: that falls under their own insurance, not your personal policy.
• Damage to a rented property where the landlord is the owner and you only insure your contents: repairs to the dwelling must go through the landlord's buildings insurer.

These exclusions underline how important it is to know your own policy and prepare the job well. A small investment in preparation can save you thousands of euros in unexpected costs. You might also consider whether increasing your voluntary deductible could lower your premium, but bear in mind that in renovation damage situations this could mean a larger out-of-pocket payment.

Step-by-step: checking your own policy

When it makes sense to have an adviser review your coverage

Drilling through your policy yourself can be time-consuming and the wording is not always crystal clear. Especially if you have recently bought a home or are planning a major renovation, it pays to have an independent advisory firm look over your whole package. A commission-free non-life insurance check through PolisMoment connects you with one registered office that screens your policy terms for relevant exclusions, underinsurance and premium levels. Read more about how the free PolisMoment check works so you know exactly what to expect. It costs you nothing and there is no obligation. It is therefore a logical step if you want to be sure before a renovation that you won't face unpleasant surprises.

If, despite all preparations, damage does occur and you are unsure about the handling, legal expenses insurance can protect your interests. An adviser can also guide you on when to file a claim and whether it is better to go through your own policy or the contractor's. Want to get an impression of how it all fits together? Do the free check and discuss your situation without any commitment.