Are you an owner-occupier whose home is in a co-owned building? Be aware that you are under an obligation to take out insurance for your flat. It is the Loi ALUR (ALUR Act) of March 2014 that requires co-owners to have this protection. Owner-occupier insurance must at the very least cover civil liability (known in France as “RC”). This cover protects you against:
As you can see, civil liability only offers limited protection. Indeed, if there is a claim in your flat, you receive no compensation from your insurer. This means that if water damage or a fire occurs in your home, all the costs related to the damage will be yours to pay.
We therefore strongly advise you to opt for comprehensive owner-occupier insurance. This contract gives you full cover that will protect your flat and your personal furniture.
From a strictly legal point of view, home insurance is not compulsory for owner-occupiers. You are therefore entirely free not to take out this type of contract. Good news? Although it is not essential, it is still important to be aware of the consequences if you choose not to take it out.
Imagine you are responsible for an incident and you have no homeowner insurance. In this situation, you will have to pay all the costs related to the damage yourself. For example, if water damage occurs in your house, you will need to have the money to dry out the flooded room, repaint the walls or replace damaged floors and furniture. Bear in mind that just the step of restoring a room costs between €500 and €3,800!
You should also bear in mind that simply owning a house often involves a higher number of risks. As the owner of a detached home, you generally enjoy:
Unlike a tenant, all of this belongs to you. It is therefore very much in your interest to protect your assets by taking out owner-occupier insurance.
It's not easy to make sense of homeowner insurance prices. Insurance companies face fierce competition and develop multiple policies to stand out. Each offer is based on different protection criteria that affect the final price of your premium, such as:
As a result, it is difficult to estimate the average price of home insurance precisely. Nevertheless, it is estimated that in 2020 the annual premium for an insurance contract was around €216 for a flat. For a house, the average price was nearer €372. By way of comparison, MAIF homeowner home insurance costs €353 a year for a five-room house. At Lovys, we offer homeowner home insurance from €3.99/month.
You may notice that insurance companies' prices are generally higher in the departments along the Mediterranean coast. For example, in Corsica, the insurance premium averages €435. Conversely, you will pay a lower premium if you live in western France. In Brittany, for instance, the average annual cost of home insurance is €245.
Insurance premiums are generally higher for homeowners than for tenants! Tenants often occupy smaller spaces, which brings down the price of their premiums.
For landlord insurance, annual premiums range between €60 and €150. Note that some insurance companies also set their price as a percentage of the rent. For landlord insurance with extended cover, this can reach up to 4% of the rent. For basic cover, it is more like 1% to 2%. Surprised by this low price? It is explained by the fact that the properties are usually already covered, so the risks are lower!
No, comprehensive co-ownership insurance does not replace personal insurance. The scope of these two contracts is both different… and complementary!
When you own your home and live in a co-owned building, you must take out homeowner insurance. This contract protects your private home within the building. Insurance for co-owners must at the very least cover your civil liability. Of course, you are free to take out comprehensive insurance to strengthen your cover if you wish.
Comprehensive co-ownership insurance, on the other hand, is collective cover designed to protect co-owned buildings. Co-owners' associations are required to take out insurance on behalf of the co-ownership. Here again, the chosen contract must at least cover civil liability. This cover makes it possible to compensate victims in the event of incidents caused by:
The first cover that homeowner insurance must include is civil liability, also known in France as “RC insurance”. This minimum cover is strictly compulsory for all co-owners. What is it for? Civil liability protects you, but also the members of your family and the people in your home.
By taking out this contract, your insurance company will cover compensation for damage caused to others. This cover is therefore extremely useful, as it covers you against many accidents of everyday life:
“Property damage” cover is the second protection included in homeowner insurance. It allows you to cover your property and your belongings in the event of a claim. As a general rule, this contract, offered by your insurer, covers the following risks:
If there is a claim, you will not be covered by your insurance. You will therefore be obliged to pay for the damage yourself. Likewise, all repair work and replacement furniture will be at your own expense.
Nowadays, most insurers offer so-called “comprehensive” homeowner or tenant insurance contracts. These policies have the advantage of giving you full cover, including your civil liability and property damage. You are therefore guaranteed compensation in the event of a claim or damage. Everything you need to fully protect your family and your home day to day!
Looking for flexible, simple and affordable homeowner insurance to protect your property? Discover Lovys, homeowners' favourite insurance: 100% digital and zero paperwork!
