You have bought the home of dreams! But what about protecting your new home and your loved ones? No one likes to think about worst-case scenarios, but by insuring your home against unforeseen circumstances, you will have you much less to worry about. A&H Finance is not only an expert in mortgages, but also in insurance.
What kind of insurances are there?
There are several insurances available to protect yourself, your family and your house.
- Life insurance / death risk insurance
- Income protection: unemployment insurance, critical illness insurance (woonlastenverzekering)
- Household insurance/home insurance: buildings and contents
- Liability insurance
Life insurance (also called a Death Risk Insurance, overlijdensrisicoverzekering in Dutch) is to protect in the event of death, and usually it pays the insured amount to your partner or children. In this way, your family can pay off the residual debt of your mortgage. There are several types of life insurance: level-term assurance and decreasing-term assurance (decreasing annuity or decreasing linear). Furthermore, for some mortgage providers Life Insurance is a mandatory policy to have after getting a mortgage, for some it’s not. Taking out Life Insurance is always included in our advice.
Income protection insurances
To cover your income, there are several income protection insurances. You can insure against unemployment, disability and serious illness. These policies make sure that you can still pay your mortgage if you are not able to do so anymore due to unemployment or sickness. In Dutch this is called a ‘woonlastenverzekering’.
Moreover, it is also important to protect your house and the contents inside it. A household insurance like a (combined) buildings and contents insurance will do this for you. A buildings-insurance protects the house (the bricks) itself. Contents insurance on the other hand covers your belongings inside of your home. For the contents insurance, it is wise to write-up all your belongings in your home. By doing that, you know how much Contents Insurance you will need and will not run into trouble by insuring too little or too much.
A liability insurance is an insurance that protects you against financial damage caused by accidents that have led to damage and/or injuries. For example, you cause an injury to another person by accident or spill wine on an expensive carpet at your neighbors’ place. You are liable for the (financial) damages caused. But a liability insurance will reimburse the victim(s) or pay for the goods. Most liability insurances cover up to 1 million to 2.5 million euros and most of the time other family members and your children are covered in the policy as well. A liability insurance is not mandatory in the Netherlands, but it is advisable to take out such insurance.
Get in touch with A&H Finance
We are not only mortgage experts, but also know everything about insurance. Getting the necessary insurances for your mortgage and yourself is always included in our advice. Call us today on 020 – 465 1951.