Do you want to invest in a property? Have you just signed your rental contract? Taking out home insurance is much more than recommended. It is a form of property insurance to cover a home. Many incidents can sometimes occur. Thus, the home insurance intervenes to cover the expenses incurred relating to these damages. In other words, this provision presents itself as a protection for your financial situation.
Home insurance includes different guarantees depending on the damage:
- The fire guarantee to cover damage caused by an explosion or fire.
- The theft or burglary guarantee in the event of a break-in
- The water damage guarantee which covers damage caused by water following a rupture of the pipe, leaks, clogging or overflowing of appliances such as the washing machine, etc.
- Natural disaster or climatic event cover to compensate claims caused by flooding, mudslides, avalanches, earthquakes, landslides, but also storms, hail or heavy snow.
- The technological guarantee which covers damage caused by a sensitive site, the transport of dangerous products or an industrial installation.
- The glass breakage guarantee to compensate the glazed parts or the furniture
Why homeowners insurance?
Is home insurance compulsory for homeowners? From a legal point of view, it is optional. Whether the owner is occupant or non-occupant, he is not subject to any obligation. Nevertheless, this contract allows you to ensure civil liability cover by covering claims caused to third parties. Many insurers offer various formulas, but each owner chooses the contract best suited to his needs.
However, it is recommended to subscribe to the contract in order to better protect yourself. In the event that you are responsible for a claim without coverage, you will be forced to pay the expenses out of your own pocket. In general, the cost of damage can be very high. For example, the restoration caused by water damage is estimated between 500 € to 3,800 € approximately. Conversely, if the claims were caused by a third party, no compensation will be paid on your behalf. In addition, owner coverage can cover your outbuildings such as gardens or swimming pools located less than 10 km from your property.
How is the home insurance for the tenant?
At the level of the law, the tenant must submit to coverage before signing a lease contract. Introduced on July 6, 1989, this regulation aims to protect the owner against any damage caused to his accommodation. However, this obligation only concerns empty accommodation, therefore unfurnished. To do this, the tenant must present the document certifying his subscription before signing the lease. In addition, liability could be dismissed in the event of force majeure, that is to say that if the fault was caused following a hidden defect.
Thus, the tenant is free to choose the insurance organization that suits him. It is therefore advisable to check all the conditions offered in order to avoid pitfalls. Nevertheless, the tenant is required to respect the use of the dwelling set out in the lease.
What are the risks in case of contract default?
For the tenant, the insurance certificate must be renewed every year according to the owner’s request. Failing this, the latter may terminate the lease by referring to the legal framework under the command of a bailiff. For this, the lease must contain a clause providing for automatic termination. In the absence of this resolutive clause, the owner may take legal action. At the end of this, the owner can proceed with the eviction.
As for the owner, the absence of a contract exposes him to considerable financial risks. At worst, injury, disability or even death caused to a third party can be a source of harm. In conclusion, take out home insurance house insurance is always essential for the owner and also for the tenant. Several organizations are at your disposal for a subscription, namely insurance companies, a general insurance agent, a bank or even a broker.
Do not hesitate to ask for an information sheet including rates and guarantees before signing your contract. Once signed, your insurer sends you a certificate proving the existence of the contract.
