What is a homeowners insurance policy for a homeowners' association?

Homeowners Insurance: What Does the Homeowners Association (VVE) Coverage Include?

Properly Insured

Anything you can’t simply take with you when you move is covered by building insurance. In other words: if it’s attached to your apartment, it’s covered by building insurance. Damage to the structure of your apartment—such as cracks in the walls or ceiling—is also covered. Other examples include fire damage to the kitchen or water damage to the bathroom or kitchen.

Not Covered/Additional Coverage

Please note that some items are not automatically covered by a homeowners’ association (VVE) building insurance policy. These may include, for example, glass damage or environmental damage. Would you still like to have this covered by insurance? In that case, additional coverage on top of your homeowners’ association building insurance is the solution. Is your apartment worth more than the homeowners’ association building insurance covers? In that case, too, you’ll need to purchase a separate policy in addition to the homeowners’ association building insurance. What is never covered under any circumstances: damage caused by floods, earthquakes, and fraud or recklessness on the part of the insured.

Is Homeowners Insurance Mandatory for a Homeowners' Association?

Building insurance is always mandatory. This has been required by law since 1973. Do you belong to an active homeowners’ association (VVE)? If so, most insurers do not allow you to purchase a standalone (basic) policy. However, you can purchase supplemental coverage on your own, “in addition to” the VVE’s building insurance.

Compare and Purchase Homeowners Insurance for Homeowners' Associations

Your homeowners' association needs building insurance. Ideally, it should be as affordable as possible, with comprehensive coverage. In this regard, there are a number of factors your homeowners' association should take into account.

Know the value

Would you like to purchase a homeowners insurance policy for your building? If so, you’ll first need to know the current value of the building. It’s a good idea to review this value every year to avoid being underinsured. Make sure you know the replacement cost of the building. This is not the same as the market value! The replacement cost is the amount needed to restore the building to its original condition (if necessary).

Apartment Clause

Was the damage caused by one of the tenants in the apartment complex? Did you fail to include an apartment clause? If so, your insurer won’t pay out. Be sure to always include this clause in your policy. That way, all other residents will be covered as well.

Notify the owners

Every owner must, at a minimum, be informed about the homeowners’ association’s building insurance. In principle, they should also have a say in this building insurance. Otherwise, they must at least be able to express their opinion. In this regard, it is wise to inform owners exactly what is covered by the insurance. Explain that the owner should be aware of items that are not covered by the policy. Has someone installed a new (more expensive) kitchen? If so, there is a good chance that this kitchen is not covered. Keep the owner informed of this and indicate that the resident may need to purchase additional coverage.

Choose what you want to insure

An insurer offers various packages for homeowners’ association (VVE) building insurance. These typically include basic coverage and, in some cases, additional coverage options. Be sure to discuss your choice of package thoroughly with the residents. The more comprehensive the coverage, the better protected you’ll be. However, this will result in a higher premium. Be sure to weigh your options carefully in consultation with the entire homeowners’ association!

Have you taken care of all of this? If so, you can purchase homeowners insurance through your homeowners' association and you'll be protected against all kinds of damage.

Homeowners' Association Comprehensive Insurance Package

Alpina offers a “VVE Total Package” insurance plan specifically designed for homeowners’ associations (VVE). There are various types of insurance available for homeowners’ associations (VVE), some of which are mandatory and others optional. When you purchase a Homeowners’ Association Comprehensive Insurance Package, you can choose from several insurance options for the Homeowners’ Association, such as mandatory building insurance (also known as collective building insurance) and liability insurance. It’s also possible to purchase glass insurance, directors’ and officers’ liability insurance, legal assistance insurance, or accident insurance. Learn more about the Homeowners’ Association Comprehensive Insurance Package.

Take out a home insurance policy with Alpina

Alpina offers the best home insurance policies tailored to your needs. Thanks to our many years of experience, we can provide you with excellent assistance. That’s why we offer the best, most affordable, and most comprehensive home insurance policies. Do you have any questions? Please don’t hesitate to contact us.