When to take out insurance
There are two main types of insurance:
- Insurance covering a natural person
- Insurance covering damage (third parties or property)
| Insurance type | Risks covered | Examples |
|---|---|---|
| Personal insurance | Risks relating to individuals - illness, bodily injury, disability or death | Health insurance, life insurance, travel insurance |
| Damage insurance | Damage to a third party or to property - gives the right to compensation covering an accidental and involuntary loss | Auto insurance, home insurance |
You can apply for several types of insurance within the same contract. This insurance will then be called “ multi-risk” .
PART 1: Auto Insurance
You must at least subscribe to a third party liability guarantee to finance the repairs of the damage that your vehicle could cause to third parties.
This is the minimum mandatory guarantee.
Note that it does not cover the driver responsible for an accident for his own damage, but his passengers will be compensated. To cover more situations, you must add additional guarantees to your auto insurance contract (see below).
Important
If you decide not to insure your vehicle with which you are traveling, you risk a fine of € 3,750.
Depending on the offense, additional penalties may be added such as community service or suspension of your driving license.
Choose your auto insurance
There are two main levels of coverage for auto insurance:
- Third party auto insurance (compulsory) which covers damage your vehicle causes to third parties. This is civil liability, a mandatory minimum guarantee.
- All-risk auto insurance (optional but recommended) which covers all cases of damage, responsible or not, with or without an identified third party.
The price of car insurance varies according to the extent of the risks covered and the degree of risk assigned to you (place of residence, past driving…).
Part 2: Home Insurance
Insuring your accommodation is compulsory in the following cases:
- You are a tenant (except if it is a seasonal rental or a company accommodation)
- You are the owner and your accommodation is located in a condominium
You are a tenant
If you are a tenant, you are responsible for any damage caused to the accommodation you are renting. If damage is caused to the home or the property it contains, you will have to finance the repairs.
This is why the law obliges you in most cases to take out home insurance covering at least “rental risks”.
We therefore recommend that you take out home insurance.
To know
The owner of the accommodation you are renting has the right to demand an insurance certificate from you.
You must give it to him every year. If you do not give your insurance certificate to your landlord, he has the right to send you a formal notice.
You own
If you own real estate, you are not required to take out home insurance, unless your home is part of a condominium. In this case, you must at least take out civil liability insurance.
Keep in mind, however, that if you occupy your home and damage is caused, you will have to pay the full cost of the repair.
We recommend that you take out home insurance if you don't want any unpleasant surprises.
Important
Know that if you are a landlord who rents your home, you have a duty to rent it out and keep it in good condition for the duration of the lease.
Your liability is incurred when a claim is caused by a lack of maintenance or a construction defect.
It is strongly recommended to take out at least one third party liability insurance.
Home insurance for tenants
The law therefore requires you to insure yourself for rental risks.
Home insurance is a common term that generally refers to " comprehensive home insurance ".
This insurance includes 3 levels of insurance formula so only one is compulsory:
- Rental risk insurance (compulsory). It covers damage caused by fire, explosion or water damage.
- Guarantee of recourse from neighbors and third parties (optional but strongly recommended). It covers damage that would be caused to neighbors. This is civil liability. To be added to the rental risk insurance.
- Complementary “multi-risk home” insurance (optional but recommended). It includes the two previous levels (rental risks and recoveries from neighbors and third parties) and supplements them. This insurance also covers all your property in the event of a disaster such as fire, natural disaster or water damage.
To know
If you decide to opt for comprehensive home insurance, be aware that the offers vary depending on the insurance company.
Choose an offer according to your needs and your means.
Homeowner insurance
As the owner, you are not required to take out home insurance unless the accommodation is located in a condominium.
However, it is strongly recommended to have one because in case of damage, the costs will be at your expense.
You live in your accommodation
If you live in the accommodation you own, it is advisable to take out comprehensive home insurance with which you will be covered in the event of theft, fire, explosion or water damage.
Your real estate (house, apartment and interior embellishments) and furniture (furniture, appliances, valuables) will be covered.
This insurance also covers, under civil liability, the repair of bodily injury and material damage caused by you, your spouse, your children or your pets.
You rent your accommodation
If you are renting out the home you own, your tenant is responsible for purchasing home insurance. Nevertheless, it is strongly recommended to take out “owner not occupying” insurance.
It will cover you in the event of damage caused to your tenants, neighbors or a third party following a lack of maintenance or construction defect in your home.
To note
If you rent furnished accommodation, you are responsible for the insurance. You can decide to leave the insurance to the tenant, with the agreement of the latter. Find out about it.
Your accommodation is part of a condominium
If the home you own is part of a condominium, your condominium has probably already taken out insurance that covers the common areas and the civil liability of the co-owners.
There remain the private parties which are not always included in the contract. We advise you to study the contract in order to know its scope. You can thus opt for an additional personal contract.
