What insurance do I need when buying a house?
The most important insurance policies worth taking out are:
Life insurance policy – you sign a contract with the insurance agency for a specific amount in the event of your or your partner’s death, and in the event of death, the insurance agency pays off the mortgage. Banks often specify this type of insurance as a pre-condition for granting a mortgage loan. The reason is simple: it provides the certainty that a large part, usually the entirety, of the loaned amount will be paid off. Thanks to a life insurance policy, your family is secured against loss of income. In comparison to other countries, this insurance is relatively inexpensive in the Netherlands.
Unemployment insurance – werkloosheidsverzekering acts like a buffer. It pays out an amount during the period when you are entitled to unemployment benefits, so that you are able to pay off your mortgage. This helps you to maintain your income at a standard level before you find a new job, so you don’t have to risk painful financial problems. It is very important to consult your advisor when starting your own company and in the case of important life changes.
Home furnishing insurance – covers most home furniture, like: television set, furniture, clothing, money and valuables. The policy covers the costs of losses or damage to home furniture due to theft, fire, explosion, lightning strike, water leak from tanks or pipes, storms and floods.