Which insurance pays out the most?

Liability cover, because personal injury to third parties can run furthest: loss of income, care, adapting a home and compensation for pain and suffering together. That is why the Dutch Motor Insurance Liability Act prescribes minimum sums insured for motor vehicles. With damage to your own property the rebuild or replacement value is the upper limit.

No. With indemnity insurance that amount is a maximum. The insurer establishes what the loss actually is, deducts the excess and applies the limits for special items. Only with fixed-sum insurance, such as personal accident or term life cover, is the agreed amount paid without calculating a loss.

Many policies pay replacement value as new only while an item is young or still fully usable. After that market value applies, that is the value after depreciation. For parts that failed through wear and tear, there is usually no cover. An excess and a limit for the category concerned can also bring the amount down.

Not with indemnity insurance: together they may not pay more than the loss suffered, and insurers divide it between themselves. Fixed-sum insurance is separate from that and can be paid alongside an indemnity payment. Do state when taking out cover that a similar policy is already running. That falls under your duty of disclosure.