Dutch Authority for the Financial Markets flags widespread homeowner misconceptions about paying for uninsurable foundation damage

The Dutch Authority for the Financial Markets published findings from its Consumer Monitor of mortgage holders showing many homeowners underestimate foundation risk and often expect repair costs to be covered by insurers or government, even though foundation damage is not insurable and must be paid by homeowners themselves. The AFM linked the issue to growing climate-related risks and cited other research commissioned by the Dutch central government indicating around 425,000 buildings and homes could face moderate to severe foundation damage by 2035. In the Consumer Monitor, eight in ten homeowners expected to face no foundation risk and more than two thirds considered the likelihood too small to worry about, while about half did not know what type of foundation their home has. Among respondents who said they did know, most reported concrete piles and 3% reported wooden piles. The AFM urged (prospective) homeowners to inform themselves in time about their foundation’s condition so they can better assess potential damage risk.