This is vital for the financial security of your family and for the long term success of your project.
Indeed, as soon as we decide to start a family, forward planning should be a natural reflex. We are responsible not only for ourselves, but also for our spouse and children.
When you contract a housing loan, you are normally required to take up one or even several insurance policies. The purpose of insurance policies is to guarantee the lending institution as well as the persons themselves.
This insurance covers your loan against the outstanding balance in the event of death.
Your spouse or heirs will become the owners of the building, without having to pay the remaining monthly instalments (capital and interests) in your place.
It also represents a security for the family (spouse, children) since, in the event of a death, the repayment of the home loan is covered by the insurance (fully or partly, depending on the terms and conditions chosen).
You can also divide the capital between the two persons, taking into account that:
Tax deductible amount of the outstanding balance insurance:
|Taxpayer||Increased ceiling (up to 30 years)||Over-increased ceiling (31 to 49 years, slice multiplied by the number of years)||Over-increased ceiling (50 years and more)|
|no children||3,000 €||240 €||7,800 €|
|with 1 child||3,672 €||294 €||9,547 €|
|with 2 children||4,344 €||347 €||11,294 €|
|with 3 children||5,016 €||401 €||13,041 €|
|with 4 children||5,688 €||455 €||14,788 €|
If you already have taken a life-insurance, this may be amended into an outstanding balance insurance (under certain conditions).
It is therefore recommended that you contact your insurer to jointly look into whether, and under what conditions, your life-insurance could be converted into an outstanding balance insurance.
This insurance guarantees the building, and the purpose is to repay the cost or to reconstruct the home after a loss.
In the case of a rental, the law considers that the tenant is responsible for the loss, unless he can prove otherwise.
Water damage – lightning – storm – hail – electrical hazards – theft – attempted theft – vandalism.
Since 1992, the law also provides for damage caused by a terrorist attack or an industrial dispute.
Due to this extension of risks covered, fire insurance is now called “home” insurance.
Civil liability can generally be included in the same policy.
It is therefore important to calculate this figure as accurately as possible when the insurance is taken and also to revise it on a regular basis.
It is recommended to keep photos and any other proofs of your household effects and valuables.
It offers the owner the guarantee that he will be compensated over 10 years following the completion of works, in the event of construction problems.
Since it is not compulsory but it can be very useful, it is important for the owner to ensure – before any commitment – that the builder has taken such an insurance.
If it is not included in your “home” insurance policy, take it as a separate insurance.
In effect, it covers all damages for which you could be liable and which are not included in the fire, storm, water damages and other clauses of your “home” insurance.
You are liable under the law.
You will be required to compensate the victim fully, without compensation limit or ceiling.
It covers damages caused during the building’s construction.
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