Buildings insurance

Définition

Buildings insurance covers physical damage to immovable property and its fixtures from insured perils such as fire, storm, water and vandalism. In the Netherlands it is arranged on a reinstatement-value basis. Property owners, landlords and mortgage lenders rely on it, and commercial leases commonly specify which party must arrange and pay for buildings cover as opposed to contents cover.

Exemple

After a storm tears off part of a warehouse roof, the buildings insurer pays the reinstatement cost of the structure.

Pourquoi c'est un risque pour l'entreprise

Under-insurance is a material risk: if the insured sum is set below the actual reinstatement value, the insurer applies a proportional reduction to every claim. Businesses that occupy premises under a commercial lease need to understand precisely which party the contract places the insurance obligation on, as a gap in cover between landlord and tenant can leave both parties exposed after a fire or flood. Accumulated improvements and fit-out works by tenants are frequently not covered by a landlord's policy unless expressly stated.

Comment le gérer

• Obtain a professional reinstatement-value survey periodically, particularly after major works or rising construction costs, to avoid under-insurance.
• Read your commercial lease carefully to confirm which party is obligated to arrange buildings cover and what the minimum policy terms must be.
• As a tenant, check whether improvements and fit-out works you have made are covered by the landlord's policy or whether you need separate tenant's improvements insurance.
• Ensure that a mortgage lender's interest is noted on the policy, as most commercial mortgages require this as a condition of the facility.

Références juridiques

• BW 7:925 Dutch Civil Code: insurance contract Droit néerlandais

Sauf mention contraire, les références renvoient au droit néerlandais (Burgerlijk Wetboek, le Code civil néerlandais) ; les instruments de l'UE tels que le RGPD s'appliquent dans toute l'UE. Il s'agit d'informations générales, pas de conseils juridiques. D'autres juridictions traitent ces concepts différemment. Vérifiez le texte en vigueur et votre situation avec un avocat qualifié.