It's an exciting time, when you're probably mostly busy doing odd jobs and picking out a new couch or kitchen. But don't forget to get your insurance in order as well. Some insurances are even mandatory once you take out a mortgage. Here we discuss five important insurances you should consider as a homeowner.
1. Building insurance
Let’s start with perhaps the most important insurance: building insurance. If you’ve bought an apartment, then the buildings are insured through the owner’s association and you don’t have to worry about this. Building insurance covers damage to anything attached to your home, such as walls, the roof, windows or pipes. Damage caused by leakage, fire, storm or burglary is often covered. Have you taken out a mortgage? Then the bank usually requires you to take out buildings insurance.
Why? Your house serves as collateral for the loan. For example, if the house is completely destroyed by fire and there is no insurance, the financial damage is enormous. So make sure this insurance is in place the day you receive the keys. Note that although banks often require it, building insurance is not required by law.
2. Contents Insurance
Contents insurance protects your personal belongings, such as furniture, electronics, clothing and other valuables, from damage or theft. Although this insurance is not mandatory, it is highly recommended. After all, an accident, such as a spill or fire, can happen to anyone. Compare well between different providers, as terms and coverage can vary considerably. Always read the fine print so there are no surprises! If you’ve bought an apartment, you might want to see if you can take out contents insurance with the same insurer for the building insurance. This ensures that when you need the insurance, the two insurance companies won’t start pointing at each other.
3. Liability Insurance
Liability insurance (TPL insurance) covers you for damage you, your children or even your pets cause to others or their property. Suppose your child accidentally breaks the neighbor’s window, these costs will be covered by third-party insurance. Although this insurance is not mandatory, it is wise to take out one. After all, claims for damages can be substantial. For owners of motor vehicles, third-party insurance is mandatory, but that is a different type of insurance.
4. Legal expenses insurance
Do you have a dispute with neighbors over the property line or is a remodeling project getting out of hand? Or do you discover defects after purchasing your home that were not reported? Legal assistance insurance can come in handy in these situations. With a legal assistance insurance you are assured of legal help in conflicts. You can often choose from different modules, such as legal assistance with disputes with family, neighbors or even your employer.
5. Death Benefit Insurance
Suppose something happens to you or your partner: you want the other person to be able to continue living in the home without being saddled with sky-high costs. Death risk insurance can offer a solution. This insurance is often taken out in combination with an annuity or linear mortgage. Note that you can usually only take out this insurance up to a certain age, usually between 65 and 70, depending on the insurer.
Want to know more about insurance?
Getting the right insurance is an important step after buying your home. Want more advice? Then contact your mortgage broker or your intermediary.
