You live in a flat and you're asking yourself the tricky question: do I need home insurance? What is it for? Is it compulsory? We've prepared a guide to answer all your questions about home flat insurance!
Is it mandatory to insure your flat?
In most cases, home insurance when living in a flat is not an option but an obligation. However, the insurance you will need to take out may be different depending on your status. Don't panic, let's take stock.
You are a tenant
As a tenant, you are responsible for any damage you may cause to the accommodation. In order to protect both the tenant and the landlord, insurance is compulsory, except in exceptional cases.
The different scenarios:
- A shared apartment: All members of the shared flat must be covered for rental risks with the possibility of taking out insurance for each of them or pooling with a single insurer (simpler).
- A flat occupied free of charge: it is optional only if the landlord lives with you in the accommodation. If not, insurance is mandatory
- Seasonal rental: The owner may sometimes ask for a holiday insurance certificate when signing the rental contract, to make sure that you are covered for any damage caused to third parties or to the neighbourhood (civil liability type cover generally included in your home insurance contract).
- Company housing: Insurance is strongly recommended, even if not compulsory, as you remain financially responsible for any damage caused to others. Remember to take out at least civil liability insurance.
You are an owner-occupant
If you are a homeowner, you are obliged to insure your flat if it is located in a condominium building. The only cases in which you can legally dispense with insurance are the following:
- Your flat is located in a single-unit building. In this case, this means that you are also the owner of all the other flats in the building.
- Your dwelling is a detached house.
Even in these cases, it is not advisable to do without insurance.
You are a non-occupant owner
As a non-occupant owner, your obligations are the same as those of owners who occupy their home, i.e. :
- Obligation to take out insurance if your flat is in a condominium building
- Optional if it is a single property flat or a detached house.
FURNISHED OR EMPTY FLAT: IS THERE A DIFFERENCE?
If you are a tenant, insurance is compulsory in both cases. If you are a landlord, you are obliged to take out insurance if your flat is located in a co-ownership, whether you rent it empty or furnished.
What guarantees should I take out for a flat?
Home insurance for a flat gives you the peace of mind that your home will be well covered in the event of a problem. While the guarantees are generally appropriate for the different types of accommodation that can be covered, attention should be paid to certain guarantees that are particularly useful in a flat.
- In flats, water damage is one of the most frequent claims. Indeed, you may have a water leak in the wall that will cause damage to you and the neighbour below. You can also be the victim of a leak coming from the neighbour on the top floor, or of an infiltration if you occupy the flat on the top floor. This is why we advise you to find out about the water damage guarantee included in your home insurance, check the cases of application and the reimbursement limits.
- If you live on the ground floor or in a high-risk neighbourhood, you will probably be interested in the theft and vandalism guarantee. A burglary is a trying time, but when you are well covered by your home insurance and reimbursed quickly, it's easier to move on. Please note that theft and vandalism insurance is often offered as an optional extra, but it is an essential guarantee for peace of mind: at Luko we include it as standard in our 'Peace of mind' package.
- Finally, a guarantee that we recommend to the occupants of a flat, especially if you live on the ground floor, or if you face south, is the glass breakage guarantee. On the ground floor, our windows are directly exposed to street traffic and can be more easily damaged. And in the summer, windows that are very exposed to the sun can explode in the heat: the glass breakage guarantee, also available as an option, allows you to have your glass replaced quickly without having to pay the cost in advance.
How much does a home cover cost?
How is the price determined?
Do you have the impression that the amount of your membership fee is set in a somewhat magical way? Make no mistake, it's actually a mix of criteria specific to your profile, your accommodation and your choice of options.
- Criterion n°1: your profile. Your price will vary according to your status (tenant or owner). Depending on your insurance policies, other factors are also taken into account, such as your age, the other beneficiaries of your contract (partner, children, etc.) and your previous claims history.
- Criterion n°2: your flat. The amount depends on the surface area to be covered, its location and the floor on which it is located. This makes it possible to calculate specific risks (such as the risk of burglary for a ground floor flat located in a high-risk neighbourhood).
- Criterion 3: your choices and options. The higher the value of your assets (i.e. your moveable capital), the higher your insurance premium will be. The amount of your excess and the level of cover you choose also weigh in the final calculation.
Tips to lower your insurance premium
Moving to lower your insurance premium is a bit extreme, we'll grant you that. However, you can apply these other tips to play on the amount of your premium:
- Sorting! As we've seen with the example of the electrical damage coverage, you may well have taken out a coverage that seemed essential to you when in reality you could do without it. Take a close look at your contract to see if everything is essential.
- The deductible: since this amount is deducted from your compensation in the event of a claim, the higher the deductible, the lower your premiums will be. It's up to you to find the right balance between the deductible level and your monthly contributions (we recommend deductible levels to guide you).
- Competition: some insurers may agree to adjust the amount of your insurance premium if you present them with cheaper quotes with equivalent cover from other insurers.
- Online insurance: often cheaper, but no less effective. Indeed, the fact that they do not have a physical agency allows them to offer insurance at much more attractive rates than traditional insurance, for a level of service that is often higher and more efficient.
Why choose Luko?
When looking for home insurance, it is sometimes complicated to compare the different offers from each insurance company. To make life easier for you, we have summarised the Luko extras for you:
- Subscription takes 2 minutes and is entirely online.
- We will cancel your old insurance for you.
- You save 15% to 25% compared to other insurances with the same guarantees.
- If necessary, it is very easy to reach our customer service, who will answer even in the evening and at the weekend.
- In the event of a problem, we reimburse you twice as quickly as traditional insurance, thanks in particular to our digital tools (instant claim declaration, video expertise, etc.).
- At the end of the year, we transfer the funds not used for the reimbursement of claims to associations: no more conflicts of interest with your insurer, we have no interest in badly compensating you.
- If you want to leave us, you are as free as air: you can cancel whenever you want, without obligation or notice.
- As a bonus, your loyalty is rewarded: in 2019 and 2020, we have not increased our customers' premiums.