Tenant’s home insurance: obligation, price and subscription

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The tenant of an empty or furnished dwelling is required to take out home insurance. It covers damage and losses caused during a disaster. What does the tenant’s home insurance cover? What is its average cost? What can the owner do in the event of a lack of insurance? An update on the issue.

Capital Video: Tenant’s home insurance: obligation, price and subscription

Is home insurance mandatory for a tenant?

Law No. 89-462 of July 6, 1989 is clear: the tenant is required to insure himself against the risks for which he is responsible in his capacity and to provide proof of this when handing over the keys and then, each year, at the request of the lessor. Proof of this insurance results from the delivery to the lessor of a certificate from the insurer or his representative. This obligation applies regardless of the nationality of the tenant and the length of his stay in France.

What does tenant’s home insurance cover?

The tenant’s home insurance covers at least:

Additionally, most policies multi-risk home insurance include theft, burglary, damage to property and civil liability of the occupants of the accommodation.

What types of insurance should the tenant take out?

Rental risk insurance

The tenant must take out home insurance which covers at least the so-called “rental” risks relating to damage which may be caused to the accommodation by fire, water damage (water leak for example) or an explosion.

Multi-risk home insurance (MRH)

Home insurance only applies to rented accommodation. It is therefore preferable to take optional guaranteescalled multi-risk home insurance. They protect the tenant if they are the victim of or responsible for a loss. The best known are home civil liability and theft insurance.

Civil liability for housing

Also called recourse by neighbors and third parties, civil liability for housing covers damage caused by a disaster at a neighbor’s home. This could be a falling tree or a fire, for example.

Theft guarantee

Theft insurance compensates the occupants of a rental in case of theft of valuables or damage during a break-in.

Additional insurance

Some guarantees even offer new equipment in the event of a claim that has damaged the devices located in the home. Other options provide coverage for theft outside the home (assault and snatching of mobile phones, handbags, etc.). Finally, many insurance companies offer assistance services that provide advisors on the phone day and night in the event of a claim.

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What is the average cost of home insurance for a renter?

The price varies depending on the type (house or apartment) of accommodation

The amount of home insurance depends on various criteria. First of all, you have to take into account the nature of the accommodation and the region or municipality where it is located. Insuring a house will cost more than insuring an apartment. Indeed, the number of rooms and the exact surface area in m2 are key elements in the estimate. A two-room apartment of 40 m² will not be insured at the same price as a five-room house of more than 100 m².

The average cost of home insurance for a renter is around 150 euros per year.

A price that increases depending on the guarantees

The last element to consider: the guarantees offered by the insurance policy. A simple guarantee reduced to the minimum will cost less than multi-risk home insurance. The cost of insurance can also be increased due to the property present in the home (high-value jewelry, masterpieces, etc.).

Can the landlord terminate the lease if proof of rental risk insurance is not provided?

In the event of a termination clause

The owner may terminate the residential lease in the event of failure to present a rental risk insurance certificate provided that the lease provides for it. Article 7 of Law No. 89-462 of 6 July 1989 provides that “Any clause providing for the automatic termination of the rental contract for lack of insurance by the tenant of a dwelling shall only take effect one month after an unsuccessful order. This order reproduces, on pain of nullity, the provisions of this paragraph”.

It is therefore possible to initiate a procedure to terminate the signed lease if the contract provides for what is known as a “termination clause” with the issuance of a formal notice.

Procedure for ordering to provide the certificate

The order to provide proof of home insurance must be issued by a court officer (former bailiff). The termination procedure may only be successful if no justification is provided within the time limit provided for in the act served. This absence must be noted by a judge hearing the dispute by the lessor: he alone may ultimately order the termination of the lease.

This procedure is cumbersome. Also, there is another possibility offered to the lessor by article 7 of the aforementioned law. Indeed, he can, in the absence of the delivery of the insurance certificate (after formal notice to provide it has remained unanswered for one month), take out insurance on behalf of the tenant, recoverable from the latter.

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Should the landlord take out home insurance?

The landlord can take out non-occupant owner insurance which, if necessary, will supplement the guarantees of his tenant’s home insurance. This insurance is mandatory when the property is located in a co-ownership. It includes civil liability cover and multi-risk coverage against traditional risks.