It is essential to take out home insurance when you own or rent. It protects you in case of disaster. This makes the choice of home insurance an important decision to make. Indeed, when you decide, several parameters are to be considered. You have to opt for a home insurance that meets your expectations in terms of guarantees. Discover 5 criteria to make a wise choice of your home insurance.
What is home insurance?
It is strongly recommended to subscribe to a property insurance that is owned, lessor or tenant. This insurance covers you in case of damage to your place or your property. It is a multi-risk home insurance (MRH).
1. Home Insurance: Definition
Also called home multi-risk insurance this is a contract that protects your home and your furniture in the event of a disaster. Indeed, landlord or tenant, you are subject to many risks. These can take the form of a flood, fire, theft, etc.
In addition, home insurance also protects housing residents through civil liability. This particular clause is automatically integrated into the home multi-risk insurance. Thus, this guarantee covers:
- Insured persons: The contractor as well as any person living at home (single adult children and any other person).
- Damages related to your private life: Be it personal, material or immaterial damage caused to third parties by yourself or another person covered by the insurance.
Most contracts also include legal protection and home assistance. On the other hand, in case of voluntary deterioration, you are no longer covered by home insurance. Thus, you will not receive any compensation. In addition, you are responsible for all credits you contract . You must therefore make a loan taking into account your ability to pay.
2. What does home insurance cover?
Home insurance covers several damages depending on the contract. This ranges from minor incidents (ice breaking, water damage, etc.) to major accidents (fires, floods, etc.). It is important to read the clauses on the contract before signing. If a warranty is not mentioned, you can request it as an option.
In the event of a claim, you must follow the procedure in order to benefit from your compensation. It may happen that the refund is subject to an insurance deductible. In this case, you will not receive the full amount of the damage. Thus, before starting the proceedings, make sure that the damage is covered by the insurance.
Indeed, several contracts provide for exclusion of the guarantee. These include the following cases:
- Neglect to prevent infractions: You must make sure to ensure the security of your home. Some home insurance policies require that you install a security system. In this case, it is your responsibility to ensure its proper functioning. Still other contracts may require special shutters and locks.
- Not securing your valuables: The majority of contracts do not provide for compensation for theft of such items. If so, then this compensation will be capped.
- Pay attention to warranty suspensions: In fact, some contracts stipulate that for an extended absence, your home insurance policy is temporarily suspended. This type of contract generally sets the maximum duration of absence to 2 or 3 months. At the end of this period, if a burglary occurs, you are not covered.
Finally, remember to cut off gas and electricity before traveling.
3. What price for home insurance?
The price of home insurance is closely related to the area of residence. It will therefore be higher depending on your profile. Take advantage of the current competition on the market to have your home insurance at a better price. To do this, you can use multiple online comparators to get a quote.
Online home insurance generally asks you to fill in several fields. This is usually the type of property (apartment or house), the number of rooms and the city. You must also complete the information concerning your status (tenant or owner), and your personal details. At the end of this, you will receive an estimate of the price of a home insurance at the insurer requested. There is also a specific student home insurance.
How to choose your home insurance: 5 criteria
The choice of your home insurance must be made with rigor. The choice must be made taking into account your expectations, your needs in terms of guarantees and your budget. Here are some criteria to guide you in your choice:
Criterion 1: Compare the prices of different home insurance
One of the first ways to get the best home insurance is to compare the prices of different offers. After several comparisons, you will have a global idea of how the market works. You will then be better able to negotiate specific clauses with your insurer. For this, you can use a comparison of home insurance online. You will have an overview of the elements taken into account when taking out insurance. Making an online quote with different insurers will allow you to choose the insurance that best fits your profile.
Criterion 2: Pay attention to home insurance coverage supported
This criterion is the most important to consider when choosing your home insurance. The guarantees covered by the insurance contract are divided into several categories:
- Housing and its contents: Check that your home insurance covers you in case of fire, flood, theft, etc. Make sure that in case of disaster, your home and your movable property are covered.
- Liability: This must take into account construction and its occupants (whether people or pets). So in case of damage caused by one of them, you are protected.
- Additional guarantees or extensions of guarantees: Check that your insurance also covers the outbuildings (cellar, garage, shelter, garden, etc.). In this case, check the limitations on them.
In fact, the more your insurance policy contains collateral, the better you will be covered.
In addition, know that there is a waiting period. This corresponds to a period during which your insurance does not cover you in case of disaster. This duration is freely determined by the insurer. It can go from a few days to several months.
Criterion 3: Properly estimate the value of your property
You need to accurately estimate the value of your personal property . Your movable property is formed by all of what is in your home. This includes clothing, furniture, jewelery and valuables, dishes, etc. Proof of purchase and photos will be requested in case of disaster.
Criterion 4: Ask about the amount of the home insurance deductible
The deductible corresponds to the amount remaining due and to the insured’s expense. In the event of a claim, the insurance may not fully compensate you. You must calculate what you will pay in this case. It is possible that this deductible corresponds to a fixed amount, or a percentage of the compensation. In the case of a percentage, this may have a maximum ceiling.
Moreover, the franchise may be simple or absolute. In the case of a simple deductible, to be compensated, the amount of the claim must be greater than the amount of the deductible. However, you will receive the full amount of the claim. In the case of an absolute deductible, you will be compensated for the difference between the cost of the loss and the deductible. In still other cases, the deductible corresponds to a fixed amount regardless of the claim.
Criterion 5: Finding out about the exclusions of home insurance coverages
The home insurance policy contains warranty exclusions. These exclusions correspond to the conditions under which you are not covered by the home insurance. These are conditions that you must consider carefully.
There are several types of warranty exclusions. Among these, we can mention:
- Damage caused by fire : When it is caused outside the home. It also includes cases of arson or due to lack of attention on your part.
- Burglary Due to Negligence : If the theft occurs through negligence on your part such as forgetting to lock the door. Also included are flights during a prolonged absence in accordance with the deadline set by your insurer.
- Water Damage : Damage caused by lack of maintenance, repair, runoff or ambient humidity.
- Liability: All voluntary damage caused by the insured does not entitle him to any compensation. This is also the case for damage resulting from the exercise of a profession or caused between members of the same family.
This list is not exhaustive, it is up to you well to inform you about the details during the subscription. At this point, you can negotiate a warranty exclusion. In this case you will be entitled to an optional warranty that voids a warranty exclusion. However, such home insurance will cost you more.
How to terminate your home insurance policy
Under certain conditions, it is possible to terminate your home insurance contract. There are 3 special reasons provided by law for which the insured can terminate his insurance contract.
1. Termination of the insurance contract on the anniversary date
It is possible for you to cancel your renewable home insurance contract tacitly. In fact, according to article L136-1, the insurer must inform you in writing of the possibility of rejection of the tacit renewal. He must therefore send it to you at least one month before the expiry date authorizing the rejection of the renewal. You will then have 20 days from that date to terminate your contract.
In case the insurer failed to inform you of this provision according to the law, you can terminate the contract for free at any time. The cancellation is effective the day after the date of dispatch. Advances made after the last renewal date will then be paid by the insurer. The latter has a period of 30 days to reimburse you. Failing this, the amounts due will be subject to interest at the legal rate.
2. Termination after the first expiry of the contract
You have the freedom to cancel your home insurance at any time without penalty or proof after one year of commitment. In case you make a change of insurer, it is again the responsibility to terminate your previous contract. This happens precisely if you are a tenant. The cancellation request then takes effect, 1 month after the request. You will receive advances corresponding to the period not covered by the home insurance. Payment will be made within 30 days of the due date.
In case you are an owner, you must send the cancellation request yourself. This one will be sent by simple mail or electronic to the previous insurer.
3. Termination after change of situation
Article L113-16 of the Insurance Code allows you to cancel your home insurance when certain changes occur. The list of changes in question includes: A change of address, marital status, marital status, profession, occupational retirement, and permanent cessation of professional activity.
In each of these cases, the home insurance may be terminated by one of the two parties. This, in order to guarantee risks directly related to the previous situation that do not appear in the new situation. The cancellation of the insurance contract can only be requested 3 months after the date of the event. This takes effect 1 month from the notification to the other party.
However, in case of sale of the insured home, the insurance is still valid unless the insured exercises his right of cancellation. This is stipulated in Article L121-10 of the Insurance Code. This insurance continues to run by right and the buyer has the benefit. He will also be responsible for meeting all the seller’s obligations towards the insurer.
Two choices are then available to the buyer, keep the home insurance or terminate. If he makes the choice to keep it, the contract will be established in his name and adapted to his own situation. The guarantees will therefore be modified. However, if he terminates the contract, he must send a registered letter to the insurer at the earliest.