Bought a House? Damage Insurances You Must Review

Quick answer: which insurances to review when you buy a house?

Have you bought a house? Three damage insurances need your immediate attention: buildings (opstal) insurance, contents (inboedel) insurance, and personal liability (AVP) insurance. Buildings insurance is almost always a mortgage requirement and covers damage to the structure, from foundation to roof. Your contents insurance needs updating because the value of your belongings often changes after a move, and you want to avoid underinsurance. Personal liability insurance is not mandatory but protects your family against large claims if you or your children accidentally cause damage to others. In addition, it's wise to review other policies like your car insurance and legal expenses insurance at your new address. In the following sections, we explain exactly what to look out for for each insurance.

Why damage insurance is different for a purchased home compared to renting

As a tenant, you are often only responsible for your own belongings and liability. The building itself is covered by the landlord's buildings insurance. Once you become a homeowner, you bear the risk for damage to the property from fire, storm, leaks, or burglary. You are not legally required to take out buildings insurance, but your mortgage lender almost always demands it. Without it, you risk being left with an unsaleable property and residual debt after a major claim. Additionally, the rebuild value of your home can differ significantly from its market value; buildings insurance covers the cost of reconstruction, not the purchase price. Meanwhile, your contents move with you, but the total contents value can increase because you have more space and buy new furniture. Your liability cover also deserves attention, especially if you're planning to expand your family.

Buildings insurance: the foundation of your home

Buildings insurance covers damage to the structure itself and everything permanently attached, like the kitchen, bathroom, conservatory, central heating system, and solar panels on the roof. It pays out for damage caused by fire, storm (from wind force 7), water leaks, lightning, and theft after forced entry. It's crucial that you insure the correct rebuild value. This value can be higher or lower than the purchase price, as it is determined by the cost of materials and labor for reconstruction. Insurers often use indexation to adjust the rebuild value annually in line with construction cost trends. Most mortgage lenders require that buildings insurance covers at least the rebuild value and include a clause naming them as first beneficiary in case of major damage. Not sure if your current buildings insurance still fits? You can compare buildings insurance without commission to see if you're paying too much.

• Rebuild value: have the property appraised for rebuild costs, not market value. Most insurers offer an online calculator.
• Renovation: planning to renovate or make sustainable upgrades? Notify your insurer before starting, otherwise coverage could lapse.
• Indexation: annual adjustment of the insured sum to the construction cost index is essential to prevent underinsurance.
• Shared ownership: in an apartment with a Homeowners' Association (VvE), the VvE usually arranges buildings insurance for the entire building; check whether it's included in your service charges.

Thinking about sustainability upgrades, such as a charging station or solar panels? They are often covered as standard, but special installations like a bidirectional charger may have additional conditions. Always consult your insurer.

Contents insurance: moving and new value

Contents insurance covers all movable belongings in your home: furniture, clothing, electronics, jewelry (up to a certain limit), and household appliances. When you move, the inventory of your home changes and so does the total insured sum. Moreover, a larger home can lead to new purchases, making your existing cover potentially too low. The biggest mistake homeowners make is blindly taking over the old insured sum, risking underinsurance. That means you won't receive full replacement value for a claim, but a proportional amount based on the degree of underinsurance. A good rule of thumb is to check your contents value annually with the contents valuation checklist. This way, you avoid coming up thousands of euros short after a fire or burglary.

Are you an expat buying your first home in the Netherlands? Dutch contents insurance may differ from what you're used to. Read our dedicated guide on contents insurance for expats to make sure you don't overlook anything.

Personal liability insurance (AVP): protection for you and your family

Personal liability insurance (AVP) covers accidental damage that you or your family members cause to others. This can be material damage (you knock over an expensive vase at a friend's house) or personal injury (your child cycles into a passerby). In the Netherlands, this insurance is not mandatory, but it is strongly recommended due to the high costs of a personal injury claim. When buying a house, technically little changes for your AVP: you still need family cover and the insured sum (usually at least €1,250,000) remains relevant. Still, it's good to check your policy: your old address might still be on it, or you may want to extend cover with a module for damage to rented or borrowed goods. Being a homeowner or part of a VvE can also raise new liability questions. Want to compare your AVP with other providers? You can compare personal liability insurance without commission.

• Family cover: check that your partner and children are correctly covered, especially after a move.
• Babysitter or household help: some policies also cover individuals under your supervision.
• Damage to rented goods: if you're renting a fixer-upper home, a separate module can be useful.

Other damage insurances to review

Besides the three core insurances, there are a few other policies you shouldn't forget. You must report your address change to your car insurance; moving to a different postcode can raise or lower the premium due to a different risk profile. Legal expenses insurance can be extra valuable in a purchased home, for instance for neighbor disputes, conflicts with contractors, or VvE issues. Your travel insurance also needs to be registered at your new address, though the premium is usually less sensitive. Finally, this is the perfect moment for an annual damage insurance review: do all your policies still fit your current situation and financial buffer? For a complete overview of insurance when buying a home, read our guide on insurance when buying a home.

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