Fortunately, the chance of a major damage to your house is not that big, but the risk still exists. Even from the most unexpected corner, houses can be damaged properly or perhaps completely. A current example is the crane accident in Alphen Aan Den Rijn. The local residents had not expected this accident and yet it went wrong so that several shops and homes were totally destroyed. And then? Then it’s nice that you have a building insurance policy …
What is a building insurance policy again?
A building insurance policy covers buildings such as dwellings in all shapes and sizes. From flats, porches and detached houses to canal houses. With a home insurance you insure damage to the home as a result of, for example, fire, storm and water damage.
Under building is understood the house itself and basically everything that is stuck and belongs to the house such as fences, sheds, fitted wardrobes, kitchens, bathrooms and solid floors. A memory helper is to recall that everything that is easy to move is covered by the contents. You can take out household contents insurance for damage to the loose items .
How is the insured amount calculated?
An insured amount is usually stated on the policy of a building insurance policy. This is the maximum amount that an insurer pays out for a total loss due to, for example, fire, storm or flooding. The house is thus completely destroyed, after which it must be completely rebuilt. The insured amount for a building insurance policy is therefore always the reconstruction value. This is the amount to rebuild a totally destroyed house.
Determining the correct rebuilding value is very important for building insurance. Because if your house is totally lost, you obviously want the insurer to pay that amount that is needed to fully restore the property. If the insured amount is lower than the fixed costs of rebuilding after a damage, you will not be reimbursed for the full damage. The compensation will then be paid pro rata.
Guarantee against underinsurance
In order to prevent you getting paid less than necessary, the reconstruction value meter is used. With this value meter you can accurately calculate the rebuilding value of your house. And when the building insurance is taken out on the basis of this completed and signed reconstruction value meter, insurers provide a guarantee against underinsurance for a period of five years.
Is the taking out of a building insurance policy compulsory?
Legally, it is not mandatory to take out a home insurance policy, but in practice banks make it mandatory when taking out a mortgage. In this case, of course, it involves large amounts, so even if a bank does not require it, it is very wise to take out a home insurance policy..