Property BV · whose name it is in · portfolio
Financing property through a bv
If your property sits in a BV (private limited company), the first question with every claim is who the policyholder is and whether that party is also the owner. That is where things often come unstuck.
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Deze pagina in het Nederlands: Vastgoed financieren via een bv.
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
Where property is bought by a BV or a holding structure, the financier looks at the cash flow, the security and the spread of the portfolio. We do not act as intermediary in that finance and refer you on for it; see financing commercial property and mortgage. Our role begins with the insurance package that then has to be right.
The most common problem is the registration in your name. The property is in Vastgoed II BV, the policy is in the holding company's name, and the invoices run through the management BV. With a claim, the insurer has to establish who had an interest in the insured object. If the policyholder lacks that interest, a discussion arises that has nothing to do with the cause of the loss. Make sure the schedule of properties and the statutory name match exactly.
The second point is the obligation to notify. A portfolio policy covers the objects listed on it. If you buy a property in March and only report it at the annual renewal, there is no cover in the meantime, unless the policy has an express provisional cover for new acquisitions. See property portfolio and insurance for property.
This page deals with one situation. The full overview is on Mortgages: we refer you on.
What works differently with a BV structure
Four subjects that weigh more heavily with property in a company than the premium per property.
Policyholder, owner and interested party
Name every company that is an owner as an insured on the policy as well, and state the financier. On a restructuring, a contribution in kind or a transfer of a property to another entity, ownership changes; that is a change you must report. If that is not done, the land register is consulted first at claim time and the policy only afterwards.
Notifying new properties and building work
Purchases, extensions and major building works are new facts. If you fail to report them, the insurer can rely on Articles 7:928 and 7:930 of the Dutch Civil Code. With building work there is the added point that damage during the works often belongs under separate construction cover and not under the buildings policy.
Soil and environment with commercial tenants
If a car business, laundry or metalworking firm occupies your property, soil contamination is a real risk. Clean-up costs are excluded under buildings insurance, even where the contamination results from a covered fire. There is a environmental damage insurancefor that. Record in the tenancy agreement who maintains which installation.
The director of the property BV
A claim about a defective property affects the company, but in the case of improper performance of duties the director can be held personally liable. Deferred maintenance the board knew about is a classic route to that. See directors' and officers' liability insurance. Administrative fines and penalty payments remain excluded under every policy.
What does your premium depend on?
- Number and type of objects: homes, shops, offices or industrial units
- The tenants' use of the premises: the activity in the property determines acceptance
- Total rebuild value: the basis for the premium and for underinsurance
- Spread and fire compartmentation: properties under one roof form a single risk
- Claims history of the portfolio: is assessed across all properties together
- Excess per event: a higher excess noticeably lowers the premium
Insurers weigh these details differently. That is where your saving is.
What is covered
| Situation | Extended | Comprehensive |
|---|---|---|
| A fire starts in the meter cupboard of an industrial unit you let to a metalworking firm | Yes | Yes |
| Your tenant drives a forklift truck through the roller door of the warehouse | Provided that | Yes |
| The painter lets paint run over the new facade cladding | No | Yes |
| A pipe in an empty unit freezes and the floor is flooded | Provided that | Provided that |
| The warehouse floor settles unevenly after a dry summer | No | No |
| The roof leaks after twenty years and the insulation is soaked through | No | No |
Whichever column you choose: the company on the policy schedule must also be the company that owns the property.
Frequently asked questions
This is what people ask us most.
Can the holding company hold the policy while the property belongs to a subsidiary?
It can, provided the subsidiary is expressly included as an insured party and the schedule of properties is correct. Indemnity insurance reimburses the interest of the party suffering the loss. If that party appears nowhere on the policy, discussion follows. With every change in the structure, report which company owns which property.
Is a property insured as soon as I buy it?
Not automatically. Some portfolio policies have provisional cover for newly acquired properties for a short period, provided you report within that period. Without such a provision, the property is only covered from the confirmed start date. So arrange cover around the time of the deed and not afterwards.
Does the buildings policy cover clean-up after a fire?
Clearing debris is usually covered, but cleaning up contaminated soil or groundwater is not. That is separate cover. With commercial tenants storing oil, chemicals or batteries this is a real risk, including for contamination spreading to the neighbouring plot.
What does Finass do and not do with commercial property finance?
We advise and act as intermediary in insurance. For the credit itself we refer you to a specialist party. We compare the offerings of the companies we work with and make sure the cover matches the requirements in your loan conditions. See also insurance for property managers.