Home insurance is tricky. It’s not like buying furniture, dresses, or grocery. Owning a home is a financial investment. To secure this investment, insurance should be your first priority. Home insurance makes it possible to cover the risks in the event of a disaster. It’s compulsory. However, it differs according to the status of the occupant, whether he is a tenant or an owner.
Many tenants believe that they don’t need to insure their homes because the owner’s insurance protects them for the building they live in. But it’s all wet. Tenants must take out insurance to protect themselves against all kinds of events that may occur.
Although the owner takes out insurance for the building, content, and civil liability, this policy does not cover the tenants’ personal property or their civil liability. It’s essential to know the differences between the insurance of owners and tenants.
Is home insurance compulsory for tenants?
It is the occupant status that defines whether home insurance is compulsory or not. In the case of a tenant, it is imperative to take out a home insurance policy.
Liability and GRL of home insurance
The tenant is responsible for the damage to the property, as well as to that of the neighbors. The owner does not “delegate” his responsibility here to the tenant, who must pay for home insurance to have the right to stay.
To deal with the risk of disasters, there is a contract called GRL (Guarantee of Rental Risks), which covers the tenant in the event of fire, explosion, or water damage.
Home insurance not taken out by a tenant
If the tenant doesn’t subscribe to home insurance, the landlord can use this reason to break the lease contract and thus cancel the rental. This is really a legal obligation that the tenant cannot avoid. He must present proof of insurance to the owner at the time of signing the contract. On the other hand, the tenant is free to choose his insurance.
Is home insurance compulsory for owners?
If a tenant is required a rental risk guarantee contract, a landlord doesn’t have any legal obligation to have to take out home insurance, whether occupant or non-occupant.
Home insurance for a homeowner
Subscription to home insurance for a homeowner’s property is not mandatory. However, it is essential in the event of a disaster such as a fire or theft. In the event, if no insurance has been made, the owner will have to make his own appeals against the responsible person(s). Moreover, he will not compensate in case of stolen or destroyed objects. Especially, he is responsible himself for the deterioration of his apartment or his house.
Home insurance for a non-occupying owner
For homeowner’s insurance for a lessor or with rented accommodation, several solutions exist. The lessor can then take out “non-occupying owner” insurance, although this is not always compulsory. To this, he can add guarantees “recourse by tenants” and “recourse by neighbors and third parties”. In order to protect himself from possible damage caused by his tenant to neighbors. But also to defend yourself against defects in maintenance and construction defects.
There is also the aspect relating to compulsory civil liability; the latter refers to the obligation to repair the damage caused to others, and relative insurance covers any damage caused to third parties. When subscribing to a multi-risk home, civil liability for private life will automatically include in the contract.
Finally, in the case of a home, liability insurance is the mandatory minimum set by law. There is also legal protection insurance. It covers costs incurred to recover the amount of damage suffered in court or even condominium insurance.
Home insurance for official accommodation
What happens to the home insurance of company accommodation? It is the beneficiary of official accommodation, which has an obligation to take out home insurance. This means that the company that owns the housing is not responsible for any risks linked to the occupation of this accommodation. Here, it is, therefore, the “tenant” who is responsible for insuring his apartment or his official house.
Home insurance is essential to protect your investment. Additionally, it provides a safety net between you and the catastrophe. Hence, it not only grants peace of mind but also ensures your family and business stability.
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