Is home insurance mandatory for everyone?

 Is home insurance mandatory for everyone?

home insurance

Are you moving into a new house? If you are a homeowner, home insurance is not mandatory unless the property is located in a condominium. It is obviously more than recommended. The situation is not the same for tenants, for whom home insurance is mandatory. However, there are some specificities. When is home insurance mandatory? How do I subscribe? Which guarantees should I choose?

Home insurance is not mandatory for homeowners

From a legal point of view, homeowner’s insurance is not mandatory for homeowners, whether they are occupants or not. However, it is strongly recommended that you take out homeowner’s insurance no matter what happens. Indeed, if you are not insured, you will have to assume all the financial responsibility in case of a disaster. 

If your home is destroyed because of your responsibility, you will not be compensated. It is therefore essential to take out home insurance, even if it is not mandatory.

If you are a landlord, you should consider purchasing non-occupant owner’s insurance. To defend yourself, you’ll need “tenant’s recourse” and “neighbor’s and third-party recourse” insurance.

Be careful! Since the Alur law of March 24, 2014, home insurance is mandatory for a condominium. You must ensure the condominium with at least civil liability insurance.

Compulsory home insurance for tenants

Home insurance is mandatory for tenants. This is the case whether you are renting furnished or unfurnished. You will have to provide proof of insurance to your landlord when you sign your rental contract as well as at each anniversary date of your contract. It is imperative that you are insured, at a minimum, against rental damage and damage to third parties for which you may be responsible.

If you do not have home insurance as a tenant, you risk being evicted from your home. In addition, you will be considered responsible for the facts in the event of a claim. You will then have to compensate any third parties affected.

Your landlord can terminate your lease if the rental agreement specifies this. However, he can also take out a home insurance policy for you. The landlord is then entitled to demand reimbursement of this contract by passing on its cost to you in your monthly rent.

Be careful! If you take out home insurance as a tenant, you can choose the offer you want. Your landlord cannot impose specific clauses on you. You simply have to ensure yourself against rental risks. 

Exceptions to the obligation of insurance for tenants

There are two exceptions to the obligation to take out tenant’s home insurance:

– Seasonal rentals

– Company housing

Please note! Even if you are not required to take out home insurance in these situations, you are still liable in the event of a claim. It is therefore recommended that you take out insurance even in these cases.

Compulsory tenant insurance: the specific case of shared accommodation

The situation of a shared flat is unique. Getting house insurance for a shared apartment might be difficult at times. There could be a lot of housemates, or they could not all be on the same lease. Is it then essential to sign up for multiple contracts? Some clarifications have been made as a result of the ALUR statute.

Until now, it was only necessary for tenants who did not have insurance to take out home insurance for their tenants. It can even be a clause in the shared lease.

This is a common clause agreed upon by the parties, not a measure to punish the renter for failing to comply. It allows the landlord to ensure that the tenants are covered while also allowing the co-tenants to avoid having to deal with a complicated contract. The following steps must be strictly followed:

– When the insurance coverage is purchased or renewed, a copy must be given to the roommates.

– The roommates can terminate the insurance at any time by providing the landlord with an up-to-date insurance certificate. The remaining costs are recoverable from the tenants.

– The same applies in the event of the premature departure of the co-tenants before the expiry of the insurance contract taken out by the lessor.

Whether it is a shared tenancy or not, it is in the landlord’s interest to take out a PNO insurance policy with guarantees for “recourse by tenants” and “recourse by neighbors and third parties”. This allows protection against possible prejudices linked to a lack of maintenance or a construction defect of the accommodation

Mandatory tenant insurance: the limits of liability coverage

If you take out civil liability coverage, it does not protect you personally or your property in the event of a claim. This coverage has several limitations:

– Intentional damage

– Professional activities

– Damage caused to yourself and your family

– Damage caused by your pet

– Objects entrusted to you

The coverage offered by this liability policy is therefore limited. For more extensive protection, it is recommended to add guarantees against fire, water damage, and natural disasters. In addition, the subscription to a guarantee of life accidents (GAV) protects you against possible accidents leading to disability as well as legal assistance.

It is therefore important to sort through the offers of the different insurers to choose the one that best suits your needs. Coverage and prices vary greatly depending on your choice.

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