With business premises the building itself is the security, and that determines what requirements the lender imposes on your buildings policy: rebuild value, an entry as interested party and cover that matches what goes on in the property.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
We compare the offerings of several insurers
An adviser checks whether the cover suits your activities
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
A lender financing business premises wants the property still to be standing in twenty years' time. That is why the assessment focuses on the fabric: construction type, roof structure, installations and above all the designated use of the property. An office unit, a production hall with a spray booth and a warehouse full of pallets are three different fire risks, even if the floor area is the same.
The insurance required is buildings cover on rebuild value, not on WOZ (property tax) or market value. The lender has itself noted as an interested party on the policy, so that a payment after a fire is not transferred to you behind its back but goes to the repair or to the outstanding debt. If the use of the property changes, that is a change of risk you must report.
Finass Verzekert does not act as intermediary in mortgages or credit. For that we refer you to a party with the right licence. We do arrange the insurance the lender requires. See also financing commercial property where the property serves mainly as an investment.
The structure of the cover in three parts, with an overview per situation below.
In advance
What you need
What a lender asks for.
Income details
Value of the collateral
Overview of obligations
In addition to the interest
What it costs
What is often forgotten.
Advice and arrangement fees
Valuation and notary
Property transfer tax
Conditions
What goes with it
What the lender requires.
Buildings insurance compulsory
Sometimes term life cover
Interested party on the policy
What is covered
Subject
Explanation
Advice is independent
Yes
We compare several providers
Yes
We arrange credit ourselves
No
Referral to a specialist party
Yes
A first conversation without obligation
Yes
Costs clear in advance
Yes
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Rebuild value is something other than the purchase price
What you pay for the property says nothing about what it costs to build it again. The land is included in the purchase price and not in the rebuild value; demolition, debris removal and current building regulations are included in the latter. If you insure on the purchase price, underinsurance is likely and the insurer pays out proportionately. A valuation in advance establishes the value and prevents discussion afterwards about the indemnity principle in Article 7:960 of the Dutch Civil Code.
The use of the property steers the cover
Insurers accept business premises on the basis of the activity carried out in them. If a tenant arrives with plastics storage, battery storage or welding activities, the fire risk changes drastically. If you do not report that, you run into Articles 7:928 and 7:930 of the Dutch Civil Code: where a change of risk is not disclosed, the insurer may limit or refuse payment. Include in the tenancy agreement an obligation for the tenant to report changes of use in writing in advance.
Damage caused by the property to others is not on the buildings policy
If a roof panel blows onto a parked car or a facade element comes loose, that is occupier's liability for structures under Article 6:174 of the Dutch Civil Code. As possessor of the building you are liable for it, even without fault. Buildings insurance reimburses your own loss, not that of the third party. For that you need liability cover. If you let the property, the variant for let property is the right one.
What you are not insured for
Three exclusions recur time and again with business premises. Soil contamination already present at the time of purchase falls outside all buildings and environmental cover. Deferred maintenance and construction or design defects are excluded. A collapse after years of deflection is not a sudden event. And damage caused by hot work without a permit to work and a fire watch is refused, even where a contractor was carrying out that work for you.
What does your premium depend on?
Construction type and roof covering. Masonry with a hard roof covering is assessed differently from a steel hall with sandwich panels or a roof with combustible insulation.
Designated use and activity in the property. Office, workshop, cold storage or production: the activity determines the fire risk and sometimes acceptance itself.
Rebuild value and floor area. The established rebuild value is the basis of the premium. A valuation report keeps that value valid for several years.
Fire prevention and compartmentation. A fire alarm system, sprinklers, fire-resistant separations and the distance to adjoining properties are taken into account.
Installations on and in the property. Solar panels on the roof, a heat pump or charging infrastructure change the risk and sometimes the inspections required.
Own use or letting. Let property calls for loss of rent cover and a vacancy arrangement. With own use it is more a matter of business interruption insurance.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your activities, turnover and wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Why does the lender require rebuild value and not the WOZ value?
The WOZ value follows the market and includes the land. The lender wants to know whether the property can be rebuilt after a fire. Only the rebuild value covers demolition, debris removal and building to current regulations. If the sum insured is lower, the insurer pays out proportionately and debt remains outstanding on the finance.
My property is empty between two tenants. What does that mean?
With vacancy, many insurers limit cover to fire, storm and lightning strike; burglary, vandalism and water damage then fall outside it. Vacancy is a circumstance you must report. Ask for a vacancy arrangement and record what measures you are taking, such as shutting off the water and periodic checks. In the meantime your repayments simply continue.
Does my buildings insurance cover damage caused by the tenant?
Fire and water damage to the building is generally covered, including where the tenant causes it. The insurer can then recover the loss from the tenant. Damage to the tenant's business contents and stock falls under their own policy. Deliberate destruction by the tenant and damage from deferred maintenance of tenant's fixtures are usually excluded.
Is loss of rent covered automatically?
No, loss of rent is a separate section that you have to include actively, with a chosen indemnity period. If you let the property and it is financed, the lender almost always requires that section: if the rent stops after a fire, interest and repayments continue. If you use the property yourself, business interruption insurance is what belongs with it.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
You will find our licence, KvK and Kifid details and our complaints procedure at the foot of every page.
