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Product Guide Household Contents Insurance


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									oom           VERZEKERINGEN                                                                             Product Guide
                                                                                          Household Contents Insurance
                                                                                                                                  January 2009

                 This product guide pertains to the insurance that is sold by the Foreign Insurance Department.

 Introduction                                                                  What are your obligations?

 This product guide contains general information about household               A premium must be paid for this insurance. Insurance tax is levied
 contents insurance. The product guide briefly sums up some of                 on this premium. Policy costs are sometimes charged as well. If
 the important aspects of household contents insurance. Policy                 you have damage, you must report it as soon as possible to your
 terms and conditions may differ from insurer to insurer. For that             insurer or insurance advisor. If anything in your situation changes,
 reason, always read the policy terms and conditions. If you then              you must also advise your insurer or insurance advisor thereof as
 still have questions, you can ask your insurer or insurance advi-             soon as possible. Damage and the consequences thereof must be
 sor to explain. The Dutch Association of Insurers (Verbond van                limited as far as possible.
 Verzekeraars) has established rules on how the product guide
 must be drafted. This product guide complies with those rules.
                                                                               What factors determine the amount of

 Which risks are insured?                                                      the premium?

 Among other things, household contents insurance covers dam-                  A number of things are important when the insurer determines
 age to items in your home as a result of the risks specified in               the premium. The following are the most important:
 the policy, such as fire, storms, burglary, lightning or explosions.          • scope of coverage;
 The financial consequences hereof are often very significant. The             • the amount insured that you have chosen on a first loss
 damage compensated by the insurer is often many times higher                      insurance basis.
 than the premium you have paid for the insurance. Policy terms
 and conditions differ from insurer to insurer. It is possible to take
 out special insurance through some insurers for very valuable                 What is paid from the premium other
 items, such as jewellery.
                                                                               than damages?

 What may you expect from an insurer?                                          Besides damages, the following are also paid from the premium:
                                                                               • the cost of information to prevent damage/loss;
 When you report damage to the insurer or your insurance advi-                 • the cost of damage settlement;
 sor, the insurer or your insurance advisor will inform you as soon            • appraisals and counter appraisals;
 as possible whether this damage falls under your insurance cover-             • charges incurred to minimise loss;
 age. If this is the case, your insurer will proceed as soon as pos-           • eimbursement of clearance costs;
 sible with the actual damage settlement. If you disagree with                 • the insurer’s costs. This includes, for instance, the costs of
 the method which an assessor has used to determine the dam-                       developing and selling the insurance, administration and pro-
 age, you may have a counter appraisal carried out. This counter                   viding information to clients;
 appraisal will be reimbursed by the insurer.                                  • the costs of the bank or insurance advisor. Do you take out
                                                                                   your insurance via a bank or insurance advisor? If so, the
                                                                                   insurer usually pays an amount to the bank or insurance advi-
                                                                                   sor, known as a brokerage fee or commission.
                                                                               • Stichting Salvage. This national organisation provides per-
                                                                                   sonal assistance, maximum damage limitation and caretaking
                                                                                   services for insurers after a fire.

Glossary of key terms

Insurance tax                                                                 Premium
This is the tax that the government levies on non-life insurance              Premiums can be paid per month, per quarter, per half-year or
premiums. The insurer transfers the tax that you pay to the Tax               per year. You must pay the premium on time. If you do not pay it
and Customs Administration.                                                   on time, this may result in no further coverage.

Charges incurred to minimise loss                                             First loss
Charges incurred to minimise loss include costs that are directly             In many cases, household contents insurance is underinsured.
incurred during or after an event to prevent or minimise damage.              This means that the amount insured is too low in relation to the
A good example of this is breaking a window in order to retrieve              actual value. If you are underinsured, your total damage will not
a fire extinguisher and put out a fire.                                       be compensated. There is no underinsurance in the case of first
                                                                              loss insurance. Your total damage will be compensated up to the
Appraisals and counter appraisals                                             maximum of the amount insured.
After damage is caused, the insurer will usually bring in an asses-
sor to determine the damage. If you disagree with the assessor’s              Damage settlement
finding, you can request a counter appraisal. Another assessor                Damage settlement means dealing with a report of damage. This
will then examine the damage. This can be regarded as a sec-                  ultimately leads to the claim being fully or partially allowed, or
ond opinion. This counter appraisal will also be reimbursed by the            the claim being rejected (e.g. because the damage does not fall
insurer.                                                                      under your coverage). The insurer may make a cash payment or
                                                                              have the damage repaired itself.
Clearance costs
Clearance costs can arise following damage. These include the                 Dutch Association of Insurers (Verbond van Verzekeraars)
costs that are incurred when the remainder of your household                  The Dutch Association of Insurers is an interest group of private
contents must be cleared before new items can be put in the                   insurers in the Dutch market. The Association’s members jointly
home.                                                                         represent more than 95 per cent of the insurance market.

Policy terms and conditions                                                   When does your situation change?
Insurance is a contract between you and the insurer. This contract            Your situation changes, for instance, when you move (abroad or
is documented in a policy sheet and policy terms and conditions,              otherwise), are going to let your house, or if your family situa-
known collectively as the policy. The insured risks, exclusions and           tion changes (through cohabitation, divorce, children, etc). Your
other coverage limitations are specified very precisely in the pol-           situation can also change if you have purchased a lot of new and
icy, together with other rights and obligations. The policy is there-         expensive items. It is always advisable to check whether you are
fore a very important document.                                               adequately insured. After all, the value of the items in your house
                                                                              may have increased.

OOM Verzekeringen
Foreign Insurance Department
P.O. Box 3036
2280 GA Rijswijk, The Netherlands
Telephone: +31 (0)70 353 21 00
Fax: +31 (0)70 360 18 73

E-mail: info@oomverzekeringen.nl


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