Compare Buildings insurance (building insurance)

A valuation is not simply a valuation

A standard valuation report often does not meet the insurer's requirements. What does meet them is a valuation with a supplementary provision on the rebuild value, as referred to in Article 7:960 of the Dutch Civil Code. Within its term — usually six years — the insurer cannot rely on underinsurance and the amount to be paid out is fixed. For more expensive homes a rebuild value calculator or address scan is no longer usable in any Case, and a valuation report is required.

Article 7:960 of the Dutch Civil Code

Underinsurance creeps up on you, and it becomes expensive

The sum assured stands still while building costs rise and you extend the house. In a case before the Rechtbank Gelderland (the district court of Gelderland), an insurance intermediary was held liable for failing to spot that the rebuilding value of a VvE (Dutch owners' association) property exceeded the sum insured, when by the middle of 2022 that could have been clear to a professional. He was ordered to compensate the uninsured loss. So have the amount reviewed periodically.

Pure financial loss is not covered

The buildings policy covers physical damage to the home. Financial loss without that physical damage falls outside it. Kifid (the financial services complaints institute) rejected a claim from someone seeking the cost of a canceled concrete delivery: the policy conditions covered only physical damage to the home, and what was claimed was pure financial loss.

Kifid

Report building work, letting and vacancy

An extension, a dormer window, letting out rooms or a long period of vacancy changes the risk and therefore the Cover. When it comes to it this is the most common reason for a payout being reduced or refused. Reporting it costs one phone call. Not reporting it costs you the loss.