1. Is home insurance compulsory?

- You are the owner.

Home insurance is not compulsory for homeowners. However, in practice, it is strongly recommended to take out home insurance.

- You are a tenant.

In France, when you rent a flat or a house you must take out home insurance. You must provide your landlord with a certificate of insurance when you move in and then every year.

2. What are the essential guarantees?

Home insurance covers a number of events within a single policy. These may vary from one contract to another and we advise you to read the scope of cover in your contract carefully so that you know exactly what events you are covered for.

Certain "basic" guarantees are found in most contracts: fire, explosion, water damage, terrorist attack, natural disaster, glass breakage, etc.

It is important to note that no home insurance policy covers intentional acts caused by the insured.

With all insurers, these basic guarantees are supplemented by numerous and varied options.

3. Identify the options that fit your needs.

When taking out a home insurance policy, it is important that you identify your needs in order to choose the policy that best suits your personal situation and budget.

The options offered by insurers are numerous and vary from one contract to another, but there are often three main categories:

- Public liability cover :

It is becoming more and more systematically present in contracts and is sometimes optional.

The civil liability guarantee covers your liability towards third parties for material and immaterial damage which are the consequences of a fire, an explosion or water damage for example.

It also covers, in the case of the tenant, all damage caused to third parties by fault, negligence or imprudence. It should be noted that damage caused by the insured himself, but also his children, his employees (cleaning lady or baby-sitter for example) and his pets are covered.

- Cover for damage to property :

Property damage cover under a home insurance policy covers your furniture, household appliances, computer equipment, decorative items, clothes, crockery, etc. These guarantees can be taken out in the event of theft, for example.

Depending on the insurer, these "classic" options can be supplemented by more specific options covering, for example, valuables and jewellery, top-of-the-range computer equipment, the contents of your freezer or your wine cellar.

It is up to you to define the coverages that you consider important according to your lifestyle and the value of your assets.

- Comfort" guarantees:

More and more policies offer 'comfort' options to make life easier in the event of a claim or in certain situations.

These options can, for example, cover your hotel stay if your home is uninhabitable after a disaster, offer you more or less extensive legal assistance, ensure the surveillance of your home during your holidays, etc.

These coverages are widely offered by insurers, but be aware that taking out these coverages can significantly increase the cost of your home insurance. It is up to you to identify what is and is not superfluous in your personal case.

4. What to look out for.

Home insurance policies can be more or less complex and it can be very difficult to compare them, but there are several points that are particularly important to watch out for:

- Deductible amounts.

Pay close attention to deductibles. Some contracts may seem attractive from a financial point of view, but they have very high excesses, which will of course affect your compensation in the event of a claim. Be very vigilant on this point.

- Protection required under the "theft guarantee".

Some contracts contain clauses requiring specific protection (armoured door, 5-point locks, shutters, bars on ground floor windows) for the guarantee to apply. Read these clauses in detail and check that you have the necessary protection.

- Old or new value?

Contracts all have different clauses in this area, so make sure you have considered how your compensation will be calculated in the event of a claim. Policies offering replacement value reimbursement are more expensive, but may be a good choice if you have expensive new electronic equipment that depreciates rapidly, for example. Again, it is up to you to identify your needs and choose the policy that best suits your situation. Note that it is important to look at exactly what your contract provides and what your insurer means by replacement value: this can vary greatly from one company to another.

5. Where to buy your home insurance?

Traditionally, home insurance policies were taken out either directly with the insurer, with a broker, or with a general agent.

Today, it is increasingly common to use an internet comparison tool to choose your home insurance online, which allows you to compare offers in detail and, above all, to pay significantly less for your insurance.

Source: Assurancehabitation.net