Joint buildings cover
- On a rebuild value basis
- Foundations, roof, facade, lift
- Often with glass cover
- Required under the regulations
Article 5:112 DCC · communal parts · the board
A VvE and liability: which insurance do you need?
With a block of flats, liability lies partly with the association and partly with the individual owner. That boundary determines which policy pays.
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- 9.5 customer rating for a new policy
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Deze pagina in het Nederlands: VvE en aansprakelijkheid: welke verzekeringen heeft u nodig?.
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
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
An owners' association manages the communal parts: foundations, roof, facade, stairwell, lift, pipework and grounds. The division regulations, whose legal basis is set out in Article 5:112 of the Dutch Civil Code, almost always require the VvE to take out joint buildings insurance for the whole building. Individual owners therefore do not each insure their own flat, but contribute through the service charges.
The same starting point applies to liability. As owner of the communal building, the VvE is strictly liable under Article 6:174 of the Dutch Civil Code: if a facade panel falls down or a balustrade in the stairwell gives way, the association is liable without anyone having to be at fault. The VvE takes out liability insurance for that. Damage within the private part falls on the owner.
There is also the risk of directors' and officers' liability. Board members are often volunteers, but they can be held personally responsible for improper management, such as a neglected long-term maintenance plan or leaving the building uninsured. If you let your flat, also look at your own position as a landlord: the VvE policy does not cover your letting risk.
The three policies of a VvE
What the association arranges and what remains with the individual owner.
Liability, VvE
Injury or damage to residents, visitors and neighbours caused by the building.
- Article 6:174 of the Dutch Civil Code
- A slippery staircase, a loose facade panel
- Leakage into the neighbouring property
- Work carried out for the VvE
Directors' and officers' liability
Personal liability of board members for improper management.
- For voluntary board members too
- Neglected maintenance or insurance
- Financial mismanagement
- Defence costs included
What is covered
| Situation | VvE policy | The owner personally |
|---|---|---|
| Storm damage to the roof of the building | Yes | No |
| Injury caused by a defective staircase in the stairwell | Yes | No |
| Home contents and your own improvements in the flat | No | Yes |
| Liability when you let your flat | No | Yes |
| A personal claim against a board member | Provided that | No |
| Deferred maintenance to the building | No | No |
Which sums insured, exclusions and excess apply to you is set out in the policy conditions, the division regulations and the insurance card (verzekeringskaart).
Four points for the VvE and owners
Where the division between association and owner pinches.
The VvE policy does not cover your letting risk
If you let your flat, the joint buildings insurance simply continues for the building, but your own position changes. Liability towards your tenant and their visitors falls outside the VvE policy and outside your personal liability insurance (AVP), which excludes let property. Report the letting to the VvE and to your own insurer. When taking out cover the duty of disclosure under Article 7:928 of the Dutch Civil Code applies and withholding information can cost you the payment (Article 7:930 of the Dutch Civil Code).
Underinsurance affects all owners at once
The sum insured on the joint buildings policy is based on the rebuild value of the whole building. If that sum has stood still for years while building costs rise, the VvE is underinsured and payment for a large loss is made in proportion. The shortfall lands on all the owners through an additional contribution. Have the rebuild value reviewed periodically. With unusual buildings a valuation under Article 7:960 of the Dutch Civil Code the value for a fixed period.
Deferred maintenance affects both policies
Damage resulting from deferred maintenance, wood rot or wear is excluded on the buildings policy. With liability it works the other way round: a neglected building is precisely what gives rise to liability under Article 6:174 of the Dutch Civil Code, and a board that ignores the long-term maintenance plan runs a personal risk. A well-filled maintenance reserve is therefore both a financial and an insurance matter.
What falls outside every VvE cover
Not covered are the home contents and the owner's own improvements in the private part, such as a more luxurious kitchen or an extended roof terrace: that is the owner's interest and the owner insures it themselves. On top of that, fines and penalty payments, environmental damage and clean-up costs and pure financial loss without damage to property or injury remain outside the cover. Intent and recklessness are excluded under Article 7:952 of the Dutch Civil Code.
What does your premium depend on?
- Rebuild value of the complex: the basis of calculation
- Number of apartment rights: the size of the association
- Year of construction and state of maintenance: the likelihood of defects
- Mixed use: shops or hospitality businesses in the building
- Share of let units: and the type of letting
- Extensions chosen: glass, lift, directors' and officers' cover
Insurers weigh these details differently. That is where your saving is.
How we arrange it
- You request a quoteWe take stock of your situation, risk 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.
9.5New policy
9.8Claims handling
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.
Frequently asked questions
This is what people ask us most.
Does every owner have to take out their own buildings insurance?
No. The division regulations almost always require a single joint buildings insurance policy for the whole building, taken out by the VvE. A separate buildings policy per flat would lead to double cover and argument about the boundary. What the owner does insure themselves is the home contents and the owner's interest: the improvements they have made in the private part.
Who pays when there is a leak from an upper to a lower flat?
That depends on the source. If the leak comes from a communal pipe, it is a matter for the VvE policy. If it comes from a pipe or installation in a private part, the owner upstairs is the party concerned and their liability insurance comes into play. The division regulations determine which parts are communal. That document governs in this kind of discussion.
Is directors' and officers' liability insurance needed for a small VvE?
Even at a small VvE a board member can be held personally responsible, for example where maintenance has been neglected for years or the buildings insurance has not been renewed. Board members are often volunteers without a professional background, which does not make the risk smaller. Besides the loss, the insurance also covers the costs of defence, and with this type of claim that is often the largest item.
Do I have to inform the VvE if I let my flat?
Usually yes: many division regulations set conditions for allowing third parties to use the property, including a user's declaration by which the tenant is bound by the regulations. Separately from that, you report the letting to your own insurers. Short-term letting through a platform is prohibited in many sets of regulations, and that feeds through into the cover and into your liability towards the association.
What if the VvE keeps no active records?
A dormant VvE is a risk for all the owners: no maintenance reserve, no up-to-date long-term maintenance plan and sometimes an expired buildings policy. When a loss occurs the costs then land directly on the owners and the board can be held personally responsible. Check whether the buildings policy is in force, whether the sum insured is up to date and whether the contributions are being collected.
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About our service
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.
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This page was written and checked by an adviser at Finass Verzekert. Last updated on .
The information on this page is general in nature and is not personal advice.