When you rent a property, it's a legal obligation to take out appropriate insurance. In the event of a claim, it protects both the tenant and the landlord. What are the compulsory insurances required when renting a property? What additional options are available? What are the risks of not having insurance? In this article, Garantme explains everything you need to know about rental insurance, so you can rent your home with complete peace of mind.
Under the French law of July 6, 1989, all tenants are required to take out insurance to cover the rental risks for which they are responsible. This obligation applies to all tenants, whether they rent empty or furnished accommodation. Non-occupant landlords, on the other hand, are under no such obligation, unless they rent an apartment in a condominium.
After signing the inventory of fixtures with the landlord, and before moving in, the tenant must take out a home insurance policy covering, as a minimum, the following rental risks:
Tenants are free to choose their own insurance company. Under no circumstances can the landlord impose a particular insurer.
In the case of a shared tenancy, tenants can take out insurance individually, or take out a joint policy.
Home insurance is compulsory, whether the contract is a standard rental or a mobility lease. It protects the property against damage to the building or neighbors.
The tenant must provide the landlord with a certificate at the start of the lease, and every year thereafter, to prove that the rented property is covered by insurance. Please note: the landlord is entitled to request this certificate at any time, and the tenant must comply with the request, failing which there will be legal consequences.
What happens if the tenant doesn't take out home insurance? Failure to take out home insurance exposes the tenant to serious consequences. In the event of a claim, the tenant will be held responsible for any damage caused, without being able to claim compensation to cover costs. Failure to take out home insurance can result in termination of the lease by the landlord, and even eviction proceedings. Indeed, the resolutory clause in the rental contract allows the landlord to terminate the lease if the tenant fails to take out insurance. It is therefore essential to take out insurance, so as not to risk losing your home, or simply having to pay the costs yourself in the event of damage or loss.
In addition to compulsory home insurance, other supplementary insurances can offer tenants more extensive protection. These additional guarantees are not required by law, but are strongly recommended for optimum coverage. What do they offer?
Tenants can take out additional cover to ensure they are better protected in the event of a claim not covered by conventional home insurance (damage caused to the property's equipment, neighbors, common parts of the building, etc.). But it also covers damage caused by the tenant to third parties, whether accidental or not.
Do you own computer equipment, furniture or valuables? Personal property insurance protects your belongings from theft, vandalism or accident, and provides compensation in the event of a claim. Remember to keep your invoices.
With the legal protection option of a home insurance policy, the insurer covers the costs of legal proceedings in the event of a dispute with a third party, in a wide range of situations: conflict with a neighbor, a landlord, a service provider, etc. It covers lawyers' fees, court costs and any expert appraisals that may be carried out, so you can benefit from support in the event of legal disagreements relating to the rental of a property.
The choice of insurance, whether compulsory or complementary, needs to be carefully considered. Several criteria need to be taken into account to find the offer best suited to the tenant's situation, accommodation, needs and budget. How do you make the right choice for your rental insurance?
Compare different insurance policies from different companies, to find the one that offers the best coverage. Online comparators are a great help. Be sure to check the cover included in each contract. Some offer interesting additional cover, such as legal protection or personal property insurance.
You should also check the deductible in the event of a claim. On the other hand, inexpensive insurance policies may have high deductibles, which could lead to substantial costs in the event of a claim.
Compulsory tenant's insurance generally includes tenant's civil liability for damage to the property, but it is often necessary to check whether cover extends to third parties (such as neighbors) or to the tenant's personal property. Some insurance contracts also exclude claims caused by pets or water damage from certain installations.When taking out your contract, it's essential to check the basic cover included and any exclusions. For example, is it compulsory to have a door fitted with a 3-point lock to benefit from compensation in the event of burglary? Carefully reading the contract and its conditions will help you avoid unpleasant surprises in the event of a claim.
Also check whether the insurance can be adjusted to take account of changes in your rental situation (change of accommodation, addition of flatmates, etc.).
Taking out home or civil liability insurance is a legal obligation for all tenants: it protects both the tenant and the landlord in the event of a claim, and provides the necessary security against various rental risks. For optimum coverage, it is advisable to supplement this insurance with additional guarantees, particularly for personal property.