Liability or buildings: what is the difference?

Buildings insurance

Covers the building you live in: fire, storm, water damage, damage to doors and frames from forced entry. Everything permanently attached.

Your mortgage lender almost always requires it, naming itself as an interested party on the policy.

The liability insurance

Covers damage that you, your family members or your pets to others cause. A broken window at the neighbours', injury caused by your dog, a laptop knocked over while visiting.

It is not compulsory, but it is the policy virtually everyone benefits from, because personal injury claims are calculated over the victim's whole life.

Where they touch

With Article 6:174 of the Dutch Civil Code they come together: as possessor you are liable for damage caused by a defect in your property. If a roof tile falls on the neighbour's car, that is liability. The damage to your own roof is buildings cover.

That is one event with two policies, and two claims if they are with different companies.

What you need

As a homeowner, both. Buildings insurance because you have to and because your home is your largest asset; liability insurance because a single injury claim can exceed your assets.