Home Insurance When Buying a House: What You Need to Know
When you purchase a home, many considerations arise—not just around the mortgage and closing costs, but also insurance. Which insurances are mandatory, which are advisable, and how do you choose the right ones? The insurance landscape can be overwhelming, but with the right knowledge, you can make the best decisions for your situation.
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Mandatory and Recommended Home Insurances
Building insurance (Opstal) – Required when taking out a mortgage. This covers damage to your home from events like fire, storms, or burglary. Without this insurance, your mortgage application won’t go through. Be sure you’re insured for the rebuilding value (herbouwwaarde), not the WOZ (tax-assessed) value—which can differ significantly in Amsterdam.
Contents insurance (Inboedel) – Not legally required, but strongly recommended. This covers your belongings against damage or theft. Your possessions are likely worth more than you might think. Many insurers offer combined packages for building and contents insurance, simplifying administration and clarifying coverage.
Liability insurance (Aansprakelijkheidsverzekering, AVP) – Also not required, but virtually indispensable in densely built cities like Amsterdam. It protects you from potentially high costs if you cause damage to others or their property—such as water damage to a neighbor due to a burst pipe. Without AVP, you could be liable for thousands of euros in damages.
Income Protection Insurances
Term life insurance – Pays out a sum to your surviving dependents in case of your death. It ensures your partner can retain the home if something happens to you.
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Income protection insurance – Offers coverage for loss of income due to disability or unemployment. Although it may sound appealing, it is usually advised not to insure for unemployment—benefits typically cease once your unemployment allowance ends, limiting protection. Instead, focus primarily on disability coverage if considering this type of insurance
Best Home Insurance Options According to MoneyView
A recent test by the Dutch Consumers’ Association (Consumentenbond) revealed that the home insurance policies from Allianz and a.s.r. ranked highest, earning top scores. Nationale-Nederlanden also performed well with their Maatwerk All-in policy. These top-rated insurance packages stand out due to their extensive coverage and favorable terms.
These policies typically include all-risk coverage, which also covers damage caused by your own fault, unlimited rebuilding value guarantees, ensuring full protection against rising construction costs, comprehensive glass and storm damage coverage, and reimbursement for sustainability upgrades such as solar panels and heat pumps. The latter is especially relevant now that more and more homes in Amsterdam are being made more energy-efficient.
What Does This Mean for You?
If you’re about to purchase a house in Amsterdam, remember: it’s wise to consider not only your mortgage but also the insurances that provide financial peace of mind. The cheapest policy isn’t always the best—focus on the terms and coverage that suit your circumstances.
Compare different packages carefully, paying attention to what’s included and excluded. Ensure your insurance is active before the keys are handed over. Being well-prepared now can help you avoid unpleasant surprises later.
If you need help selecting the right insurance, Maurits Verzekeringen compares policy terms and prices from various insurers. Feel free to reach out, we’re happy to help.
Frequently Asked Questions About Home Insurance
Building insurance (or home insurance) covers damage to fixtures like walls, roofs, plumbing, and kitchens. Contents insurance covers movable items like furniture, electronics, and clothing. Together, they ensure your home and belongings are well protected.
Congratulations on your new home! After signing the purchase agreement, make sure to:
• Arrange building/home insurance (often required for the mortgage)
• Consider contents insurance for your belongings,
• Don’t forget liability insurance in case you accidentally cause damage to others or their property.
You should arrange home insurance before the notary transfer date. From that moment on, you’re responsible for the property. In the case of apartments, check whether the building is covered by association insurance (VvE). If not, you’ll need your own building insurance.
No, liability insurance is not mandatory—but it’s highly recommended. It covers accidental damage you or your family or pets—might cause to others or their property. Think spillages, like red wine on a neighbor’s couch, or water damage to another home.
For thorough coverage, we recommend:
• Building insurance (structure) – covers your property structure.
• Contents insurance – protects your possessions.
• Liability insurance – covers accidental damage to others.
• Glass insurance (optional) – in case this isn’t included by default.
• Legal assistance insurance (optional) – for legal support in disputes regarding your home.
