Guarantee against underinsurance
If you are underinsured, you will not be paid the full amount in the event of a claim. Keep your guarantee against underinsurance by filling out the rebuild value meter every 5 years on a home insurance policy. For contents insurance, use the contents value meter.
Compare home insurance policiesWhat is underinsurance?
Underinsurance means that you have insured something (such as your house, boat or contents) for too low an amount in your home and contents insurance, for example. If there is damage, you will then be reimbursed for only part of the damage amount because the insured value is lower than the actual value.
Underinsurance can occur because your situation changes. You move in together, renovate your house or buy more and more (expensive) items. The insurance you took out earlier may no longer be sufficient.
Prevent underinsurance
You can avoid this by regularly checking the current value. For example, with an appraisal or value meter. Some insurances also offer a guarantee against underinsurance, so you are always fully covered.
Calculation example underinsured property insurance
If underinsured, the claim amount is calculated using the underinsurance formula, which divides the amount insured on the policy by the actual value of the building.
Suppose you have building insurance for €150,000. However, the rebuilding value is €300,000. Then you are insured for only 50% of the reinstatement value. Do you claim damage? Then you get only 50% of the damage amount compensated. Regardless of the damage amount.
The rebuilding value
The rebuild value is the amount you need to rebuild your house in the same place and manner. This value is usually lower than the price you bought the house for. This is because the selling price also takes into account the location and land on which the house sits.
Because the site and land are not lost in a fire, you do not need to insure them and they do not count toward the rebuild value in building insurance. Therefore, the rebuild value is often lower than the resale value.
Reconstruction Value Meter
Every 5 years, the insurer will ask you to fill out the rebuild value meter to prevent underinsurance. This is also requested when you move house. A reconstruction value meter helps you easily calculate the reconstruction value of your building. This tool determines the cost to rebuild your home after damage.
Foundation does not count
The foundation of the house does not count here. If the foundation is damaged, a new foundation must be installed when the house is rebuilt. Many building insurance policies allow you to co-insure the foundation for an additional premium.
Adjusted building insurance premium
Have you filled out the rebuilding value meter? Then the insurer will check whether the insured amount has changed. Your premium will then go up or down. The insurer will then send you a new policy document with the adjusted premium.
Preventing underinsured contents
As with home insurance, your contents may also be underinsured. If you use the contents value meter, you can prevent underinsured contents.
Contents value meter
The contents value meter can help you calculate the value of your contents in an easy way. It is really meant as a tool. The inboedelwaardemeter is based on various studies into the value of the contents of a large number of households in the Netherlands.
Insurers often offer a guarantee against underinsurance. However, this does have a maximum amount. Are you sure your household contents are worth more than the amount that comes out of the household contents value meter? Please indicate this.
Special property and warranty
With contents insurance, the guarantee against underinsurance often does not apply to special possessions. Think of valuable jewelry or art. This means that in the event of damage, you may have to bear part of the claim amount yourself if the insured value turns out to be too low.
Valuables insurance
To avoid this, it's smart to get a reappraisal done and make sure your special possessions are properly insured with valuables insurance.
Compare home insurance policies
Use our handy tool and compare home insurance policies. That way you'll never be underinsured and you can put together your own package for your dream home.
Frequently asked questions about warranty against underinsurance
What is the difference between the contents value meter and rebuilding value meter?
The contents value meter estimates the value of your contents, while the rebuilding value meter calculates the cost to rebuild your home. Both meters help prevent underinsurance and form the basis for guaranteeing against underinsurance with contents and homeowners insurance policies, respectively.
Can you lose warranty against underinsurance?
Yes, warranty against underinsurance can be voided if you fail to comply with conditions, such as completing the value meter in a timely manner. The guarantee is also at risk if data is incorrect or outdated, which can result in lower compensation.
How does valuables insurance help with underinsurance?
A valuables insurance policy additionally covers special possessions such as jewelry, art or antiques. These often fall outside the underinsurance guarantee of standard home contents insurance. By insuring them separately, you avoid having to pay a portion yourself in the event of damage.
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