What exactly is the coverage of a home insurance policy?

What does buildings insurance cover?

For buildings, there are four coverages you will often encounter, namely:
- the fire coverage
- extended comprehensive cover (often abbreviated to UGV)
- extended indemnity cover plus (UGV+)
- all-risk coverage (often called most comprehensive)

Through Alpina (a also most other intermediaries), fire coverage and UGV coverage are not available. Simply because we don't want you to face any surprises in case of damage.

With UGV+ coverage, there is coverage for all occurrences, which are mentioned in the policy values. With all-risk coverage, all claims are covered unless they are excluded in the terms and conditions. There can be big differences in this.

It is therefore important to carefully review the policy terms and conditions, as the exact coverage may vary from one insurer to another. The most common damages (such as explosion, fire, lightning, falling trees) are insured under both UGV+ and all-risk coverage.

Often, costs to prevent further damage are also covered as well as the costs to clean up damage. Often these are reimbursed up to a maximum amount.

What does building insurance not cover?

The insurer always names in the policy conditions what is not insured. Examples are damages resulting from a (natural) disaster/catastrophe or due to intent or recklessness of the policyholder. The windows of the house are often not standardly insured, but can be insured separately. It is possible to take out glass insurance as additional coverage or as an extension within your building insurance.

How do I make sure I am appropriately insured?

Underinsurance occurs when the actual rebuilding value of your home is higher, than the value you have insured. This can cause problems in the event of a claim.

Many insurers allow you to insure against underinsurance. Often you have to fill in the reinstatement value meter at predetermined moments. These moments may vary from one insurer to another.

Also read:

• Does building insurance provide coverage for damage incurred by DIY?