If you finance property outside the banking system, the insurance requirements do not come from a standard mortgage deed but from what you have agreed with the lender yourself.
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.
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
Besides banks, property funds, private lenders, family members and crowdfunding platforms provide finance secured on property. They look more closely at the asset and the rental income than at your personal income, often decide more quickly and accept situations a bank turns down: short-term positions, conversions, letting to particular groups.
The difference that matters on this page is how it is recorded. A bank uses a tried and tested set of clauses in which the buildings insurance, the pledge of the payout and the pledge of rental income are dealt with as standard. In a private deed, that is often absent, or worded differently. Anyone who then suffers a loss only discovers at that moment who is entitled to the payout.
What does financing property outside the banking system cover?
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.
The deed determines the policy, not the other way round
The pledge of the insurance payout is set out in the finance deed. The note recording the lender as an interested party still has to be added to the policy afterwards. If that does not happen, the insurer pays out to you after a fire while the lender believes it is entitled to that money. Have the deed and the policy set side by side before the first drawdown, not at the first claim.
Letting must be stated expressly on the policy
A personal buildings policy is designed for owner occupation. If you let the property, room by room or to migrant workers, that is a change in risk which you must disclose. If you do not, the insurer may rely on Articles 7:928 and 7:930 of the Dutch Civil Code and reduce or refuse the payout. There are separate policies for letting, with their own acceptance questions about the type of tenant and the form of contract.
Vacancy and conversion severely restrict cover
As soon as a property stands empty, a vacancy clause almost always applies: only fire, storm and lightning strike remain insured. Burglary, vandalism, glass breakage and water damage are excluded. If you convert the property to a new use, the works themselves are not covered under the buildings policy; that requires a separate construction policy. Report vacancy actively; concealing it costs you the cover.
What a non-bank lender specifically does not cover
There is no NHG guarantee and, for business lending, the consumer protection framework does not apply. Terms are often short, with a refinancing risk at the end. On the insurance side too, much remains at your expense: loss of rent through non-payment or vacancy without physical damage is nowhere covered, and soil contamination falls outside the buildings policy. Allow for those items in your operating budget.
What does your premium depend on?
Construction type and fire compartmentation. Brick with a hard roof covering is assessed differently from timber or sandwich panels.
Use and type of tenant. Self-contained accommodation, room letting and business use each have their own acceptance conditions.
Vacancy and how long it lasts. During vacancy a clause applies which reduces cover to a limited number of perils.
Security and supervision. Burglary resistance, fire detection and periodic inspection count towards acceptance.
Location and surrounding risk. Water, adjoining buildings and the nature of neighbouring properties affect the premium.
Excess and loss of rent included. A longer payment period for loss of rent increases the premium.
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.
Does a non-bank lender also require buildings insurance?
Almost always, but the requirement is then in the private deed rather than in a standard mortgage condition. Check whether it also includes the pledge of the payout and the note recording the lender as an interested party. Without that note on the policy, the insurer may validly pay out to you after a loss and a dispute with your lender arises.
What does a vacancy clause involve?
That during vacancy the cover is reduced to a limited number of perils, usually fire, storm and lightning strike. Burglary, vandalism, water damage and glass breakage are then not covered. The clause takes effect as soon as the property is no longer actually in use, even if you are still looking for tenants. So always report vacancy to your insurer.
Can I let a property under a personal policy?
No. Personal buildings insurance assumes occupation by the policyholder. Letting is a change in risk which you must disclose under Article 7:928 of the Dutch Civil Code. If you fail to do so, the insurer may reduce or refuse the payout and cancel the policy. For let property there are separate products with their own acceptance process.
Does Finass broker this finance?
No. We advise and act as brokers on general insurance and hold no credit licence. For the finance we refer you to a specialist firm. What we do is assess the buildings, loss of rent and liability cover on your portfolio and make sure that the requirements from your finance deed actually appear on the policy.
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.
