Buildings insurance for your business premises

What is a building for insurance purposes?

Included are all the parts of a building for which demolition or dismantling work is required to break down the building. For example, windows, ceilings, doors, and walls. Fences and hedges also belong to the building.

For whom is corporate buildings insurance useful?

Buildings insurance (opstalverzekering in Dutch) is useful if you are the owner of your commercial property. Think carefully about the risks you run. For example, if your property is located in a forested area, trees can fall and cause damage during severe storms. With a buildings insurance, you can insure the damage to your property.

Do you rent your business premises, office, or other commercial space? Then you do not need to take out buildings insurance.

Is buildings insurance mandatory?

You do not have to take out buildings insurance for your business premises. But if you own commercial property, it is a good idea. The costs for repairing damage can be very expensive without insurance. When applying for a mortgage, the bank may require you to take out a buildings insurance. Because your business premises serves as collateral for the mortgage.

What is usually covered by buildings insurance?

• Damage to your business premises
• Damage to a shed, stable, or garage, if used for your business activities

What is covered and what is not depends on your insurance company. And the conditions of your insurance policy. Always read the policy conditions carefully. You can ask an independent insurance advisor for advice.

The cost of buildings insurance for a commercial property varies and depends, for example, on the type of property, the location and how expensive it is to rebuild the property.

In what situations does buildings insurance pay out?

If the contract with your insurer (your policy) states that you are covered for what has happened to you. Common causes are fire, water damage, storm damage, vandalism, or theft.

After you report the damage, in most cases the insurer will visit you to assess the damage and the cause. They will also check that it is covered by the insurance. And what measures you had taken to prevent or minimise damage, such as fire alarms and good locks on windows and doors.

The insurer may offer to have the damage repaired, or they may pay an amount so you can do it yourself. This depends on the terms and conditions in your policy.

What is usually not insured?

• Indirect damage such as loss of income. For this you need business interruption insurance
• damage to your inventory. For this you need inventory insurance
• damage to goods or stock. For this you need goods insurance
• damage that you cause deliberately yourself
• damage caused by poor maintenance
• damage caused by illegal activities, for example a cannabis plantation
• damage caused by natural disasters, such as earthquakes and floods
• Many insurers allow you to combine the various casualty insurance policies. You are then insured for multiple damages at once and often pay less premium.

How do you insure a home office?

Do you have an office or other workspace at home? Your contents insurance and buildings insurance are for your own belongings and the house itself. They do not cover damage to business equipment and your workspace. If something happens to your home, you may need to rent external workspace temporarily. This will incur additional costs. Ask your insurer about the options for insuring your home workspace.