August 1, 2021

How to insure your second home or the property you rent to others

If you own a second home or a rental property, you must take out adequate insurance covering any claims that could affect them. For the second home, the base of coverage is broadly the same as for a comprehensive home of the main residence. “With this contract, policyholders protect themselves against damage caused by water damage, fire, natural disaster or burglary. It also offers civil liability for damage caused to others ”, specifies Julien Fillaud, CEO of Hyperassur.

However, according to the companies, the guarantees offered are not identical. First difference: the amounts covered. The insured movable capital varies greatly, from simple to triple for the same housing surface. If your property is rustic furnished, basic coverage will be more than sufficient. On the other hand, if it contains designer furniture or collector’s items, check that you will be sufficiently covered in the event of a claim. You must also be vigilant when you have the latest equipment (equipped kitchen, computer equipment for teleworking, etc.). In case of doubt, it is better to opt for a superior formula, which costs a little more expensive but allows you to be better insured.

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In order to find the most suitable insurance, also read the special conditions which indicate the terms and conditions to be fulfilled to be covered. For example, it is sometimes mandatory to turn off the water when you leave your home to be compensated in the event of water damage. Certain exclusions are also frequent, such as that of precious objects (jewelry, etc.) left behind or the cost of burglaries in outbuildings (bicycle room, lean-to, etc.).

Common exclusions

If you own a rental property in a condominium, it is also imperative to take out a non-occupant owner contract (PNO). For a two-room apartment, you need about ten euros per month. “This insurance is used in particular to protect against a risk that is not covered by the tenant’s comprehensive home insurance, or in the event of a claim between two periods of occupation”, explains Virginie Bonnot-Masip, head of the MRH GMF branch at Covéa. Concretely, a PNO insurance covers damage caused to the property of the lessor and those that the accommodation could cause to a third party. This is the case, for example, when there is a leak on a private pierced pipe that damages your home and that of neighbors.

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