Thinking of moving to the Netherlands or already settling in? Handling the world of insurance can feel overwhelming, especially with so many options to consider. But before diving into the extras, it’s smart to start with the essentials: the ones required by law. This post outlines the mandatory insurances in the Netherlands and explains who needs them and why.
Basic Health Insurance (Basisverzekering)
Mandatory for: All residents and workers in the Netherlands aged 18 and older.
Every person who lives or works in the Netherlands is legally obligated to take out basic health insurance. This insurance covers essential medical care, including:
- Visits to general practitioners
- Hospital treatment
- Prescription medications
The government defines the coverage of the basic package. Insurers must accept all applicants regardless of age or health status. While extra health insurance (e.g., dental or physiotherapy) is available, it is not mandatory.
Third-party car liability insurance (WA-verzekering)
Mandatory for: All vehicle owners in the Netherlands.
If you own and drive a motor vehicle, you must have third-party liability insurance. This insurance covers damage or injury you cause to others while driving. It does not cover damage to your own vehicle. You can insure it separately through optional coverage like an all-risk insurance.
Home insurance (Opstalverzekering)
Mandatory for: Home owners in the Netherlands.
Required by mortgage lenders to cover damage to the structure of your home.
This insurance protects the physical structure of your home, including walls, roof, windows, and permanent fixtures, against damage caused by:
- Fire and smoke
- Storms and lightning
- Flooding (limited coverage)
- Burglary and vandalism
- Explosions or collisions
If you live in an apartment, the homeowners’ association (VvE) often arranges a collective opstalverzekering for the entire building.
Life Insurance Overlijdensrisicoverzekering
Mandatory for: Home owners in the Netherlands. It is not mandatory by law. Still, many mortgage lenders require it. This is especially true for high loan-to-value mortgages or when there is only one income.
It ensures that your mortgage (or part of it) is paid off. This happens if you pass away during the term of the policy.
How it works: You choose a coverage amount and a term (e.g., 20 or 30 years). If you die within that period, the insurer pays out the agreed amount to your beneficiary. The payout is often used to repay the mortgage.
Types of payout structures:
- Level term: The payout stays the same throughout the policy.
- Decreasing term: The payout decreases over time, often matching the declining balance of your mortgage.
Once you’ve got the required insurances covered, it’s worth looking into optional ones that might be helpful.
Until next time, stay savvy.
