Insurance and respect of the lease
No matter what type of rented home you choose, insurance contract must fit to criterias written in the lease. If not, sanctions must be feared.
The lease is the reference document that connects the owner and his tenant. It describes the rented home and features of the stay. Through this document, rights and obligations for both parts are described and insurers must respect them.
The lease is the reference document that connects the owner and his tenant. It describes the rented home and features of the stay. Through this document, rights and obligations for both parts are described and insurers must respect them.
Regarding us, we can note that:
- Rental period. Insurance contract must have the same period than the lease or working in order to cover the expected period. For example, a stay of 8 months can not be covered by a contract of 12 months. Why? Because the insurer, that must have a precise understanding of the risk, is misleaded on the length and the expected amount of the insurance. Penalties are provided in the Insurance Code.
- Housing content. Furnished rental involves a home with furniture provided by the lessor and goods belonging to the tenant. If your insurance do not take into account this fact, you will have a lack of proper insurance if a claim happened and you may pay all damage costs with your own money.
This is also true for the lessor. He must give his home features and rental conditions to his insurer. He is exposing himself to same penalties if he did not tell the truth. The only difference is that the lease allows him to turn to you to get back his home.
- Insurance clause of the lease. In addition of aspects already seen, the lease describes the type of insurance that the tenant must take. Except very unusual cases, we encouter 2 different clauses:
" the tenant must subscribe a contract against locative risks (fire, water damage, explosion, etc)" . An insurance covering locative risks or vacation resort civil liability will be enough for a lessor, even though it is not complete if we look for an optimal cover of goods and responsabilities. For more information, you can read our articles about Civil liabilities and Damage insurance.
Or
" the tenant must be insured (…) against risks of fire, theft, water damage, as much for locative risks as for furniture given in rent, and also neighbors requests".
We note here that an insurance against theft risk is asked. Consequently, insurance taken must be a comprehensive home insurance, only insurance that contains this sort of guarantee.
You have an interest in being properly insured. Especially because management procedures for a claim (water damage for example) are not the same than others. You can expect a heightened vigilance from experts and insurers in charge.
Therefore, insuring a furnished home is only for specialists.
Most insurers and banks can not offer you an insurance contract for 8 months or guaranteeing rented furniture. Only because they do not have proper product in their standard offer that is made for common risks.
This is not bad, it’s just their marketing strategy.
Unfortunately, some of them, not wanting to miss a deal, will sell you a contract with a very interesting price but totally unsuitable.
Even worse, we have seen that some famous banks had asked their customer to terminate a highly suitable insurance contract to put their contract instead when the customer opens a bank account. This is explained by the fact that in those networks, it is not the same person that is selling the product and that is managing potential claims after.
Be cautious because, at the end, this can costs you a lot.
Most insurers and banks can not offer you an insurance contract for 8 months or guaranteeing rented furniture. Only because they do not have proper product in their standard offer that is made for common risks.
This is not bad, it’s just their marketing strategy.
Unfortunately, some of them, not wanting to miss a deal, will sell you a contract with a very interesting price but totally unsuitable.
Even worse, we have seen that some famous banks had asked their customer to terminate a highly suitable insurance contract to put their contract instead when the customer opens a bank account. This is explained by the fact that in those networks, it is not the same person that is selling the product and that is managing potential claims after.