Home insurance is a good choice because both the buildings insurance and the home contents insurance are then placed with the same insurer. Everything fits together neatly, in the event of a claim the details only have to be provided once, and there is also no need for any discussion about which insurer has to pay what. Precisely because several insurance policies are placed with one insurer, often including personal liability insurance (AVP) alongside the buildings and home contents insurance, it is important to pay close attention to the costs of the home insurance. These can differ. This page describes the situation in the Netherlands.
Factors that affect the cost of home insurance
As with all insurance, the cost of home insurance depends on three factors. The risk that the insured person suffers damage plays an important role, for example. The greater the risk of damage, the more expensive the home insurance will be. In addition, the insurer will take into account the insured value, or what it has to pay if damage occurs. The more the insurer has to pay in the event of a claim, the more expensive the home insurance is. Furthermore, every insurer has its own formulas and financial calculations, which makes some insurers more expensive or cheaper than others.
The risk of damage
An insurer obviously does not have a crystal ball and cannot predict the future. That is why insurers estimate the risk on the basis of the data they do have. For this they often use historical data from which various conclusions can be drawn. These factors cause the risk to rise, which also makes the costs rise. The various factors are shown in a table.
Let it be clear that changes to these, such as moving house, a change in the family situation or replacing a thatched roof with roof tiles, can make the home insurance cheaper or, on the contrary, more expensive. In such a case the insurer must always be informed. It is also advisable to compare home insurance policies again at that point.
On the other hand, insurers often also take into account investments in security systems (Police Secure Housing label (Politiekeurmerk Veilig Wonen)). In such a case the risk of burglary damage falls and the premium also goes down. It is a good way to save money on home insurance.
| Factor | Why does the risk increase? |
|---|---|
| Additional cover | With additional cover for glass damage, for example, the risk of a claim naturally only increases. |
| Type of home | A detached home is more exposed to wind and weather, which makes the risk greater. |
| Place of residence | In some neighbourhoods there is a greater chance of damage, for example because burglaries happen more often or because there is more frequent water damage. |
| Children in the household | Children are less careful, which increases the risk of damage. |
| Age of the home | Older houses are often less safe and increase the risk of damage. |
| Characteristics of the home | In particular things such as a thatched roof or a wooden house increase the chance of fire damage. |
Insured value
The biggest expense for the insurer is of course the situation in which the full rebuild value of the home has to be paid out. The higher that rebuild value, the more expensive the premium will be. It could be determined using valuation reports, but that is not always practical. That is why insurers often use a rebuild value calculator (herbouwwaardemeter), whether or not in combination with a guarantee against underinsurance. An estimate of the expected rebuild value is then made on the basis of objective data about the home.
In many cases the insurer will of course not have to pay out the full rebuild value, for example when there is only water damage to the interior. An estimate of such small claims naturally also affects the cost of home insurance. In practice, the insurer therefore also estimates the insured value for such smaller claims. The insurer makes this estimate on the basis of the factors below.
| Factor | Why does the insured value increase? |
|---|---|
| Additional cover | With additional cover for valuable antiques, for example, the value of the contents increases. |
| Foundation | The damage is greater with piled foundations. |
| Date of birth | Over the course of their lives people collect more and more belongings and the value of the contents increases. Only from the age of 70 does this change, and the value of the contents decreases again. |
| Living area | The more space people have, the more belongings they collect and the higher the value of the contents. |
| Number of family members | More family members means more belongings and therefore also more damage in the event of a claim. |
| Net monthly income | People with a higher net monthly income buy more expensive belongings, so the value of the contents increases. |
Saving money on home insurance
On the other hand, there are ways to limit the costs for the insurer. The insurer can, for example, include exclusions, or you can choose a higher excess yourself. This makes it possible to save money on home insurance. With cheap home insurance policies, these factors are often the explanation for the low prices.
| Factor | Why is it favourable for the insurer? |
|---|---|
| Exclusions | By not paying out for certain types of damage (for example damage to art), costs are kept down. |
| Excess | A higher excess means that the insurer does not have to pay a larger part of the damage. This makes the premium lower. |
| Maximum cover | In some cases cover is capped at a maximum amount. The lower this amount, the cheaper the insurer can be. |
The insurer's financial plan
When a new home insurance policy is taken out, the insurer takes on a risk. The insurer can in turn insure that risk (or part of it) with a reinsurer. In the Netherlands these are reinsurers such as Nederlandse Reassurantie Groep or elipsLife. Such reinsurance results in costs, just like the insurer's operating costs. And on top of that, the insurer also has to make a profit. That is why insurers use their own financial plans. As a result, it is perfectly possible for two insurers to charge a different premium for exactly the same insurance. Comparing home insurance policies therefore remains very important.
Average cost of home insurance
As shown above, it is never possible to say in advance what a home insurance policy will cost. The calculation will be different for every home and situation, while insurers also have different financial plans. The average figures should therefore only be regarded as a guideline.
Average cost of home contents insurance
Home contents insurance costs on average between €10 and €30 per month, depending on the size of the home and the location. In cheap regions you pay around €10 to €19 per month for an average home, while the costs for a detached home are higher. Because of the large differences between insurers and regions, it is wise to compare the various home contents insurance policies carefully before making a choice.
More about home contents insurance
Average cost of buildings insurance
For a long time, buildings insurance cost on average €1.30 per €1,000 of insured value. However, since the early 2020s the costs of buildings insurance have risen considerably as a result of rising prices for building materials. Increases of more than 15 percent are therefore not unusual. Other insurance policies, such as personal liability insurance (AVP) and legal expenses insurance, have also become more expensive. It therefore remains important to compare insurers and policies before making a choice, so that you find the most favourable and suitable insurance.
More about buildings insurance
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Frequently asked questions about the cost of home insurance
When you take out home insurance, you will be dealing with various costs and premiums. What, for example, are the additional costs of cover for glass damage? And does making a claim affect the premium of the home insurance? These and other frequently asked questions about the cost of home insurance are answered below. With this information you can make a well-considered choice when taking out a new home insurance policy.
What are the additional costs of cover for glass damage?
That varies from insurer to insurer. With some home insurance policies, glass damage is even covered as standard. Here too, many factors play a role, such as the excess for glass damage. Usually this costs a few euros extra per month. On an annual basis, additional glass cover can therefore easily cost €36 to €60 more. Always check whether separate glass insurance is not more favourable.
Does making a claim affect the premium of the home insurance?
With most insurers it does not, but they can cancel the insurance if claims are made too often.
How much does age affect the premium of the home insurance?
Age affects the risk and the damage in various ways. Young people, for example, have fewer belongings, so it would be logical for them to pay less for home insurance. On the other hand, young people often have children, which increases the risk. Research by MoneyView concluded that young people pay 20% more than average for buildings insurance, while people aged 65 and over pay 20% less than average. Of course, factors other than age alone also play a role here.
To what extent does the Police Secure Housing label (Politiekeurmerk Veilig Wonen) affect the premium of the home insurance?
On average, the price of home contents insurance falls by 5 to 15%. For an apartment in an expensive region, that amounts to €9 to €27 per year.
What is the additional cost of legal expenses cover?
A handful of insurers also offer legal expenses cover with their home insurance. This easily costs €10 to €25 more per month. The large difference is, once again, the result of differences and limitations in cover.