Points to check before choosing your insurance policy
“A homeowner and the tenant of a flat are not insured in the same way,” sums up Philippe Lequeux-Sauvage. An insurance policy does indeed depend on the type of property, its size and its geographical location. Doors and windows are more exposed to the risk of vandalism in town than in the countryside, but the cost of call-outs for repairs is higher in rural areas than in densely populated ones. The nature of the insurance policy and its cost will therefore differ.
Today, the vast majority of policies cover a range of claims: water damage, broken glass, fire, terrorist attack… This is known as multi-risk insurance. Some policies, however, offer optional extras: theft, vandalism, electrical damage, outdoor property (for those with a garden) or even the breakdown of household appliances. Assess your needs and take your budget into account in order to choose the most suitable cover.
According to Philippe Lequeux-Sauvage, “it is the owner of a detached house who must take the most thorough approach when choosing an insurance policy.” Unlike the owner of a flat, they do not benefit from the building’s insurance, which protects the common areas. They will therefore need to make sure they are covered in as many situations as possible.
Specific clauses and civil liability
Before signing, check the details of the policy, particularly the occupancy clause, which requires you to live in the property for 8 to 9 months a year. “Let your insurer know if you are going to be away for several months, otherwise you risk no longer being covered in the event of a claim,” advises Philippe Lequeux-Sauvage. If the property is, or becomes, a second home, you should also say so.
Policy clauses sometimes require specific installations: sturdy shutters on the windows, a five-point lock on the front door, and so on. Do not overlook these details, or your insurer could declare the policy void. Finally, remember to check that the policy also covers “special” installations: swimming pool, solar panels, domestic wind turbine, etc.
The risk assessment visit
Some insurers still offer to carry out a risk assessment visit of the property to be insured. This is often reserved for large houses. It also provides an opportunity to reassess the property in order to update the policy.
One last important point in the policy: civil liability insurance, noted “RC” (responsabilité civile). It is always included in the policy. It is up to you, however, to check exactly whom it covers: spouse, family, occasional visitors? Owners of detached houses will also need to take out building liability insurance. “It will cover, for example, a tree from your garden falling onto your neighbour’s house,” explains Philippe Lequeux-Sauvage.
Having your contents valued
When taking out home insurance, you will need to state the total value of the contents of the property. “It is worth calling on a professional for the valuation, but only if you own genuinely valuable pieces,” says Philippe Lequeux-Sauvage.
So there is no need to bring in an auctioneer for a television and a few pieces of jewellery! To value your belongings yourself, start by checking the definition of a valuable item in the policy’s general terms and conditions. “It is often specified that only jewellery worth more than €300 is taken into account,” explains Philippe Lequeux-Sauvage.
Do not underestimate the value of your contents in order to pay less for your insurance policy! In the event of a claim, the insurer may apply a proportional reduction to the compensation on the grounds of an incorrect declaration.
Example: you declared contents worth €5,000, but their actual value is €10,000. Your insurance policy therefore costs you 15% less than if you had declared the true value.
A fire destroys your belongings. Your insurer should compensate you for €10,000 worth of property, but will impose a 15% penalty on that compensation.
Overestimating your belongings is no more useful: you will not be reimbursed any better! On the other hand, if you buy a valuable item that falls within the definition given in the general terms and conditions, let your insurer know: they will draw up an amendment to the policy. Remember to keep the invoices, take photos, and store them somewhere other than your home.
The excess: an (almost) unavoidable feature
In the general terms and conditions of your insurance policy, you will very often find an excess applicable in the event of a claim. Its amount varies according to the type of claim, and there are two kinds: absolute (the compensation equals the difference between the cost of repair and the excess) or relative (the compensation equals the full cost of repair, but only if it exceeds the amount of the excess).
Example: your policy provides for an excess of €100 for broken glass.
Your window is accidentally broken. The repair costs come to €250. If the excess is absolute, your insurer will compensate you to the tune of €150. If it is relative, they will reimburse the full €250.
The excess is often the bane of policyholders. “Yet it has helped to bring down the price of insurance policies,” points out Philippe Lequeux-Sauvage. Indeed, the excess represents the cost of processing a claim, which is the same whatever the extent of the damage. Policies with no excess at all can still be found, but they are generally more expensive than average.
Cancelling and renewing your home insurance policy
A home insurance policy is renewed every year by tacit renewal. The premium is then recalculated according to the premium indexation clause. Insurance companies are, however, required to send the policyholder a letter around a month before the policy expires. You will have 20 days after the anniversary date to cancel the new policy. A tenant who is moving house, and therefore wishes to cancel their insurance policy part-way through the year, must send their insurer a letter by recorded delivery, together with proof of the move.
Finally, Philippe Lequeux-Sauvage advises owners who are putting their home up for sale on no account to cancel their home insurance before the sale has actually been signed (the final deed, not the preliminary sale agreement). “Should a claim occur between the two signings, you would no longer be covered,” he explains.