7 Different Types of Insurance in the Netherlands
There are many different types of insurance in the Netherlands. However, only a few are legally necessary. In addition to this, there are many optional forms that may be recommended depending on your personal circumstances. Insurance in the Netherlands is regulated by both the Dutch Central Bank and the Netherlands Authority for Financial Markets. Insurance is a high-performing industry in the Netherlands.
7 Types of Insurance in the Netherlands
1. Health insurance
Health insurance in the Netherlands is mandatory for all residents and you must register for an insurance scheme within four months of arriving in the country. If you are eligible, you can register for public health insurance. The cost of public health insurance in the Netherlands is deducted from your salary and consists of two forms:
- Zvw (zorgverzekeringswet), which is a basic package covering most general healthcare costs;
- Wlz (wet langdurige zorg), which covers long-term nursing and care treatment
If you do not have public insurance in the Netherlands, you will have to take out private health insurance. In addition to this, private insurance can also be taken out by those covered publicly for treatment not included under public insurance, such as:
- adult dental treatment
- physiotherapy
- specialist treatments not covered through public insurance
2. Car insurance
In the Netherlands, insurance policies cover the car rather than the driver. Consequently, anyone with a valid driving license can legally drive your car. However, the person whose name is on the insurance remains legally responsible for any damage. By law, you must have at least third-party insurance for your car. This covers you against any damage or injury to others caused by your vehicle.
If you want to increase your level of car insurance, you can opt for a limited extension. This will cover your vehicle against damages caused by theft, vandalism, fire, storms, or collisions with animals. For comprehensive coverage, there is the all-risk policy which covers all damage. Most importantly, this includes damage which was your fault.
3. Social insurance
If you are working in the Netherlands, you are obliged to make Dutch social security payments. This is split into two areas. The first is national insurance which covers:
- pensions
- child benefits
- survivor benefits
- long-term care
The second is employee insurance which covers:
- unemployment benefits
- sick leave
- disability benefits
Self-employed workers in the Netherlands have to make national insurance payments. However, employee insurance is optional. Because of this, many self-employed workers in the Netherlands do not have insurance against unemployment.
4. Home insurance
Homeowners insurance is not compulsory in the Netherlands, but you may need to purchase it if taking out a Dutch mortgage when you buy Dutch property. A standard home insurance policy covers fire, storm, flood, and theft. However, flood coverage policies distinguish between rainwater damage (covered) and damage due to dike failures (not covered).
If you are a tenant renting in the Netherlands, you should find out the details of your landlord’s insurance policy before arranging your own cover. In general, your landlord’s insurance will cover damage to the building itself, but it won’t always cover your belongings.
5. Life insurance
Life insurance provides financial security for family members in the event of your death. There are a number of insurance companies in the Netherlands that offer life insurance, with different packages to choose from. If you purchase life insurance in the Netherlands, make sure you are clear on the details so that you know the extent of the coverage. For example, not all life insurance policies cover natural disasters or terrorist attacks.
6. Travel insurance
You will need travel insurance if you make a Dutch visa application. For example, if you are traveling on a Schengen visa you will need the following:
- Minimum medical coverage of €30,000
- Coverage of expenses related to repatriation on medical grounds.
Besides medical coverage, good travel insurance should also cover things such as trip cancellation, emergency evacuation, and lost or damaged possessions. Before purchasing an insurance policy, make sure you read the small print to see what the policy covers (e.g., sports-related accidents).
7. International insurance
Whether you are living, working, studying, or retired in the Netherlands, you can find tailored international or expat insurance from both Dutch and global insurance companies. Most companies will be able to offer health insurance and life insurance to suit your needs. Large insurers often offer combination packages that can bring down costs. As a result of this, customers can avoid the problems of overlapping insurance plans.