Private ownership · personal policy · capacity
Financing property as a private individual
Buying a property in your own name does not mean you can manage with personal policies. As soon as there is a tenant in it, or the building is not your own home, different conditions apply.
- Several insurers compared objectively
- 9.5 customer rating for a new policy
- AFM licence 12016589
- Personal 072 - 509 24 56, weekdays 9–17
Deze pagina in het Nederlands: Vastgoed financieren als particulier.
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
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
If you buy a second property as a private individual, the finance is rarely an ordinary residential mortgage. We do not arrange the finance. For that we refer you on. See property finance, buy-to-let mortgage and mortgage. What we do cover is the question of which policy goes with a property you do not live in yourself.
The core is the business activity. Personal products assume owner occupation. Home insurance, personal liability insurance (AVP) and a personal legal expenses policy are written on that basis. As soon as you are running the property as a business, you fall outside that framework: operating property is excluded under virtually every personal policy. You only notice that at claim time, because the premium is simply collected. See buildings insurance for an investment property.
The second point to note is liability. As possessor of a building you are liable under Article 6:174 of the Dutch Civil Code for damage caused by a defect in that building, even if you knew nothing about it. A loose facade panel or a slippery walkway then leads to a claim for which you are personally liable. Without separate cover, that claim lands on your private assets; see property liability insurance.
This page deals with one situation. The full overview is on Mortgages: we refer you on.
Where private ownership goes wrong
Four situations in which the personal policy does not do what the owner expects.
A home policy stops at letting
If the policy schedule states that you live in the property yourself while there is a tenant in it, reality differs from the declaration. The insurer can rely on Article 7:930 of the Dutch Civil Code and reduce the payout in line with the premium that would have matched the actual risk, or refuse it entirely in the case of deliberate deception. Change the policy before the first tenant moves in.
Your AVP does not cover this property
Personal liability insurance covers you in the capacity of a private individual. Damage arising from the ownership or operation of property you do not live in yourself is excluded as standard. The claim by a visitor who falls through a broken stair tread therefore does not land on that policy but requires property owner's liability cover.
With a flat, the VvE insures the building
If you buy an apartment right, the building is generally insured through the owners' association. If you take out a buildings policy yourself as well, you pay twice without receiving twice: Article 7:960 of the Dutch Civil Code does not allow you to receive more than the loss. What you arrange yourself is the owner's interest, your own liability and possibly a top-up for the VvE's excess.
Foundations, damp and vermin
Damage from subsidence, pile rot, gradually penetrating damp, woodworm or rodents is excluded under buildings insurance. Those are maintenance defects and not sudden events. With older properties in private ownership this is the most common refusal. Have the foundations assessed before purchase; insurance does not make up for that check.
What does your premium depend on?
- Number of properties in private ownership: from a few properties onwards you move to a commercial policy
- Flat or house on its own plot: with an apartment right the VvE insures the shell
- Year of construction and listed status: repair to listed building standards costs more
- Owner-occupied or entirely let: determines the capacity stated on the policy schedule
- Additional sections chosen: glass, loss of rent and owner's interest
- Excess per event: often separate for storm and water damage
Insurers weigh these details differently. That is where your saving is.
What is covered
| Situation | Personal policy | Business premises policy |
|---|---|---|
| A storm rips tiles off the house you live in yourself | Yes | No |
| Your dog bites a passer-by while being walked | Yes | No |
| A fire in the flat you let to an expat | No | Yes |
| A visitor falls through a broken stair tread in your second property | No | Yes |
| Water damage to the neighbour below from a burst pipe in your let flat | No | Yes |
| A dispute with the tenant about rent arrears | No | No |
If you hold more than a single property, legal expenses and liability also move to the commercial variant.
Frequently asked questions
This is what people ask us most.
May I keep my ordinary home insurance?
Only as long as you live in the property yourself. As soon as you let it, allow someone else to use it or leave it empty for a long period, the situation differs from what the policy states. Report that change to us or to the insurer. If you do not, you run the risk of payment being reduced or refused under Article 7:930 of the Dutch Civil Code.
Am I liable if a tenant falls on the stairs?
Possibly. Article 6:174 of the Dutch Civil Code imposes strict liability on the possessor of a structure for defects in the building, regardless of whether you are at fault. A tenant can also rely on the general wrongful act provision in Article 6:162 DCC. For those claims you need property owner's liability insurance, not your personal AVP.
Can I insure a dispute with my tenant as a private individual?
Under a personal legal expenses insurance, a dispute about let property is generally excluded, because it counts as running a business. There are modules for landlords covering rent collection and eviction, with a waiting period and often an exclusion for disputes already under way when the policy was taken out. Ask about this expressly on the application.
Does Finass also refer people on for the loan itself?
Yes. We advise on insurance and do not act as intermediary in mortgage credit. For the finance we put you in touch with a party that specialises in it. The insurance that follows from the loan conditions we can then compare and apply for on your behalf with the companies we work with.