Are you sure you are fully insured, the Dutch way?
When you live in The Netherlands long enough you might start to adopt certain habits and mindsets that are considered as Dutch. For instance, a popular mindset in The Netherlands is that “we would rather be safe than sorry”. In practice, this often shows up as taking out multiple insurances for all potential scenarios that might lead to costs one would rather avoid. As you know, there are several optional insurances to choose from in addition to the mandatory health insurance (zorgverzekering), car insurance (WA-verzekering) and homeowner insurance (opstalverzekering). Perhaps you already have the optional liability insurance (aansprakelijkheidsverzekering) which covers any damage you cause to another person or their property. In case you have children, all-risk home contents insurance (in Dutch: inboedelverzekering all-risk) could be handy when anyone in your family, including yourself or your partner, causes damage to your belongings – even if the damage was caused in the heat of the moment and thus on purpose. The list of optional insurances is endless, so we won’t list all of these, nor will we advise to obsessively apply for all kinds of optional insurances. For example, smartphone or bike insurance provides little value if the annual fees do not even match up to the current value of those items. In the end, choosing an insurance is a personal choice and should match your needs, situation and family composition.
That being said, it’s good to highlight that based on assisting internationals, there is one ‘forgotten’ optional insurance we believe deserves more attention: Legal Insurance (in Dutch: rechtsbijstandverzekering). Now, you might think you do need a cat-observer, dog-walker, mortgage advisor, real estate agent, but not a lawyer. This type of thinking is very understandable because a positive mindset follows the belief that in any kind of relationship there is always a solution to any problem. However, a minor disagreement that initially seemed small can always turn into a serious conflict, potentially followed by a lawsuit, especially where large costs are involved.
In practice, once internationals have settled in The Netherlands we often notice that in a couple of months, sometimes even years, they reach out to us again with urgent legal questions. These questions always concerns conflicts between an international and a party they have a contract with. Fortunately, the most popular relationship where conflicts arise is not the one between life partners. The most popular relationship where conflicts take place is the one between lessee and lessor. In come cases there are disagreements about clauses in the rental contract during the lease period. Yet, most disagreements actually occur during and after moving out of the rental property. Some examples to think of usually relate to:
- damages where the lessor claims it’s your fault and plans to withhold an amount from the deposit;
- excessive delays in the return of the deposit; or
- other types of disagreements about the condition of the property at the end of your lease period.
In case of confusion or misunderstandings about the rules and legislation applicable to these situations, PIRGROUP happily offers legal support in the shape of advice to the international and mediation between the international and the lessor or managing agent. In these cases we do our best to work towards a solution for an international. We still recommend taking out legal insurance in addition is because we cannot force a counterparty to do what you might wish them to – as this is only possible via a court order. Therefore, as an extension of our advice and mediation support, a lawyer might come in handy should you want to take the case to court and require legal representation. This is one example of a relationship and situation where a lawyer can be covered via legal insurance. Other relationships you can think of are the ones between you as employee and your employer or you as a consumer and a seller.
On the topic of “home” related issues, should you plan to leave the tenancy sphere and buy a home in The Netherlands, there are even more benefits in getting legal insurance. Not everyone buys a turn-key home and instead chooses to buy:
- a new build (read: yet to be built);
- a fixer upper (read: old and full of mysteries); or
- a property you would like to renovate (read: you have several Pinterest boards).
This often entails that you will have temporary relationships with home sellers, contractors, sellers of custom-made products (kitchens, furniture etc.) repairpersons, plumbers, electricians etcetera. It would be safe to say that any issue in these relationships can actually make you cry. Some examples to think of:
- a plumber who bails on finishing the piping in the bathroom;
- a seller of an older property who fails to disclose information about a leaking roof (hidden defects); or
- a manufacturer who fails to translate your verbal or written expressions into the design of your ordered product.
These examples should give an idea of the situations one typically doesn’t foresee, yet are vivid enough for you to tackle upfront via Legal Insurance, should such an issue ever arise. Do keep in mind that depending on the policy conditions there might be a waiting period – meaning, a certain period of paying insurance fees – before you can actually make use of the Legal Insurance.
On a last note, Legal Insurance is useful for anyone who is not proficient in Dutch, or anyone who is proficient in Dutch but not in Legal Dutch – and surprisingly the latter includes a large percentage of the Dutch-speaking population. Keep in mind that legal representation in court is sometimes mandatory or at least beneficial for the case at hand. We trust that the above motivates you as an international to be more sure about the insurances you take out. The aim of this article is to raise awareness and not to promote an insurance company. Of course, in case you would like to apply for Legal Insurance we can certainly recommend using this website or this one to compare options.
Should you have any questions about insurances in general, or do you have a situation that requires mediation and legal advice, feel free to to contact us or call us at the phone number +31 (0) 85 – 620 4900!
By Sorayda Kappel, Senior Immigration & Relocation Consultant at PIRGROUP The Netherlands.
