Are you the owner and have your apartment or house rented out? The tenant’s obligation to take out multi-risk home insurance does not cover all the risks of the landlord.
Non-occupant homeowner’s insurance can be a solution.
Water damage, fire, or even natural disasters are risks covered by your tenant’s home insurance. However, there are cases where this is not enough to properly protect the property.
Some concrete cases where non-occupant owner (PNO) insurance can be useful:
1. Your home is unoccupied
If no one lives in your house anymore, there is no one to take out traditional multi-risk insurance. Between two rentals, a vacant dwelling is not protected.
A storm, fire and you will have to pay for the damage yourself.
2. Your tenant is not or no longer insured
Your tenant must take out a multi-risk home guarantee (MRH). He must present you with a certificate at the signing of the lease and then at each annual expiry date.
Since March 2014, the law for access to housing and renovated urban planning (ALUR) has limited cases of non-insurance.
It authorizes you to sign a contract on behalf of the tenant who does not provide the certificate. You can then pass this cost on to the renters.
Please note, this does not mean that landlord insurance has become useless. It intervenes in fact in situations not covered by that of the tenant.
3. The multi-risk does not cover the disaster
The occupant’s multi-risk home insurance does not cover all damage. The non-occupant owner’s insurance (PNO) will, for example, cover water damage caused by the bursting of a pipe, a guarantee not normally covered.
4. Your occupant is not involved in the accident
The roof, exterior walls, or gate is damaged by a disaster? However, the multi-risk home guarantee will not apply.
Indeed, it only covers what is called rental risks.
This is generally the interior of the dwelling, the furniture, and the personal effects of your occupant.
For example, if tiles come off the roof or your garden shed is the victim of vandalism, the cost of repairs will certainly fall on you. In the absence of protection, all costs are your responsibility.
Unless you are in a condominium that has taken one.
What does landlord insurance cover?
Your PNO insurance includes fundamental guarantees for your protection: civil liability and cover for fittings outside the home. If you rent furnished accommodation, you can also insure your furniture.
Your civil liability
Homeowner’s liability coverage covers you for damage you may cause to others. This is particularly the case if the damage results from a construction defect or a lack of maintenance on your part.
Let’s say you failed to have your roof repaired after a storm when the tiles are unstable.
If one of them breaks off and breaks the front window of your neighbor’s vehicle, your insurance compensates it.
Same thing if you cause a disturbance of enjoyment to your tenant or to the neighborhood. For example, if water damage makes his room unusable, your insurance can sometimes find a solution for his temporary relocation.
Finally, your rights are defended if a third party attacks you. For example, if your neighbor takes you to court because the fire in your home spread to his, your insurance covers you.
Most insurers systematically offer this defense-recourse guarantee. Be sure to include it in the contract and its scope.
1. Your landscaping
We advise you to opt for reimbursement at replacement value. You will pay a little more for your insurance, but you will not be powerless in the face of a major disaster.
If there is a garden, a swimming pool, or outbuildings, mention them to your insurer when taking out your contract.
Also, add the guarantee of all real estate risks. It is very protective and intervenes when the other guarantees are lacking.
2. Your furniture
Are you renting fully furnished accommodation? Take care to protect your movable property: furniture, household appliances, electrical installation, or boiler.
Very often, your tenant will only have declared his personal effects to his insurer without including yours in the amount.
If a fire or an electrical surge damages the boiler or your coffee table is the victim of theft, their replacement cost remains your responsibility.
How much does it cost?
PNO insurance is inexpensive, about half the price of multi-risk home insurance (notably it does not cover movable property). In addition, contributions can be tax-exempt.