What is home insurance?
A Home Insurance is an insurance contract that covers accommodation and its contents, i.e. goods and furniture. The purpose of this type of insurance is to cover the financial consequences of any claims that a tenant or owner may face. It therefore makes it possible to protect against the risks associated with a house or an apartment: water damage, fire, theft, electrical damage, etc.
For a tenant of unfurnished empty accommodation, home insurance is compulsory to take out. Thus the owner will be entitled to ask him for a certificate of home insurance. As far as owners are concerned, insurance is only strongly recommended for individual dwellings. For condominiums, it becomes mandatory to take out a contract including at least civil liability.
The types of insurance offered
There are different types of insurance depending on the status of the owner/tenant and the nature of their accommodation. The most basic is multi-risk home insurance (MRH), which provides reimbursement for damage caused to the rental property as well as the property in it.
There is also the Non-Occupant Owner’s Insurance (APNO), intended for owners who rent out their property. Even if this type of insurance contract is not compulsory, it is still highly recommended since it could cover damage not included in the guarantees of the tenant’s home insurance. On the other hand, it is an important security when the accommodation is not occupied.
What guarantees do home insurance policies offer?
The guarantees of your contract may be different depending on the type of accommodation and the formula chosen. Here are some examples of the guarantees most often offered by insurers:
- Civil liability which covers damage caused to a third party (person or property belonging to a third party).
- Water damage following a failure or a water leak.
- Thefts and fires in the house and its surroundings.
- Electrical damage caused by electrical overload, short circuit, etc.
- The valuables guarantee: it covers the theft or destruction of valuables such as jewellery, computers, etc.
- The responsibility of the tenant: Only for rental accommodation, covers damage caused to other members of the same household or to occasional guests.
You can also subscribe to certain additional options and services according to your needs: assistance, works service, furniture and bulky object guarantee, legal protection guarantee, etc. These guarantees are not compulsory and can be chosen according to your needs and your budget.
How to choose the right contract for your accommodation?
To choose a suitable insurance contract, it is advisable to go through a few essential steps. You have to start by taking the time to compare the rates between several insurers, but also to read each condition of the contract carefully. It is also important to find out about the ceilings and deductibles of your contract. You must also ensure that your civil liability cover is sufficiently extensive, and do not hesitate to seek advice from a broker.
It is also important to look at the prices offered. Each insurer has its fee schedule depending on the type of property insured and the level of cover chosen. Always ask for several quotes, and keep in mind that the price is not always the most important. Instead, focus on the quality of the services offered, especially during claims or in the event of compensation, because this is what determines your peace of mind.