The Three Most Important Insurances You Need After Buying a Home

The Three Most Important Insurances You Need After Buying a Home

Congratulations, you have bought a home!

But have you thought about the right insurances to protect yourself and your property? Here are the three most important insurances you should definitely consider:

1️⃣ Fire Insurance (Home Insurance)

Fire insurance is not legally required in Belgium, but it is strongly recommended. This insurance protects you against damage caused by fire, water damage, storms, lightning strikes, and even burglary.

💡 Tip: Some landlords require fire insurance when renting out a home. Additionally, you can opt for extra coverage, such as content insurance, to ensure your furniture and personal belongings are protected.

2️⃣ Mortgage Balance Insurance

This insurance is linked to your mortgage loan and ensures that your heirs are not left with your outstanding loan if you pass away. The insurance pays out a pre-agreed amount so that your partner or family does not face financial difficulties.

💡 50% or 100% coverage? You can choose a mortgage balance insurance that covers 50% or 100% of the outstanding amount.

• 50% coverage: Both partners take out insurance on 50% of the borrowed amount. This means that if one partner passes away, the other must still repay half of the loan. This option is cheaper in terms of premiums but places more financial responsibility on the surviving partner.

• 100% coverage: The full loan is repaid upon the death of one of the partners. This provides maximum security, but the premium cost is higher.

💡 Did you know? Banks do not require this insurance, but without it, your loan may be more expensive. Some banks offer lower interest rates if you take out mortgage balance insurance with them.

3️⃣ Guaranteed Housing Insurance

What if unforeseen circumstances (such as illness or job loss) prevent you from paying your mortgage? The Guaranteed Housing Insurance provides free protection against income loss, offering financial support for a certain period to help you continue paying your mortgage.

💡 Are you eligible? The Flemish government offers this insurance for free under certain conditions. Check here to see if you qualify: www.vlaanderen.be/verzekering-gewaarborgd-wonen