Protecting
Your Property in France (excerpt
taken from a FBG Newsletter)
A
cautionary tale about getting your house insured…
One evening
as I was watching the world go by and vaguely pondering the
meaning of life, ably aided by my glass of wine, I got talking
to a young couple. They had just bought a little “plain
pied” (single storey house) by the sea as a holiday
home but love it so much that they are planning to make the
move a permanent one. As we were swapping stories about our
respective French properties they let me in on a cautionary
tale.
They
had sensibly taken out full buildings insurance and were pondering
whether to spend just a little extra for contents insurance
for their home - in the end they did, thank goodness! Literally
the day after they had taken possession, one of the water
pipes sprang a massive leak causing a fair amount of damage
to some of their furniture and possessions. Luckily they had
had their policy translated and knew they were covered for
the lot, contents and all – phew!
I in
turn related the story of my boiler springing a massive leak
back in January and we all agreed insurance – though
maybe a dull subject – is terribly important, especially
as you may not be at your overseas property all the time.
Basic
house and contents insurance in France is the “assurance
multirisques habitation”. This will include cover
against natural disasters as a matter of course. Civil liability
insurance – “responsabilite civile proprietaire"
– is essential and you also need to insure your possessions.
Remember too that if you are planning to build on a piece
of land you will need to take out an “assurance
dommages-ouvrage” (damage caused by building).
This is compulsory, although you can get around this if the
building you are constructing is to be your family’s
principal residence.
You can
take over the insurance policy from the existing owner but
you may wish to tailor it and ‘make your own’.
I feel the wisest course of action for foreign buyers is to
have your policy written in English. In any event, you must
have your policy in place to present to the notaire
before you sign the final “acte de vente”.
As for contents insurance, the current market value of the
items is usually used to work this out and depreciation is
taken into account. The insurers may insist on certain improvements
such as shutters being fitted to windows and bars on doors
or other security measures. ALWAYS READ THE SMALL
PRINT and make sure you are not under-insured.
If there
is nothing of particular value in your property you may take
out a basic insurance against damage from natural causes,
vandalism etc. This is known as “assurance multirisques
d’immeuble”. This is used by the “coproprietes”
and some owners of blocks of apartments. It will be calculated
by the square metre and there should be a clause inserted
in which the insurer agrees to rebuild or restore the property
to its original state within 2 years in the same style.
When
your policy is presented to you, check to see what conditions
are set for reporting damage, thefts etc and if there are
any exclusions. When my boiler sprang its leak, the first
thing I did was take a bunch of photos of it and the ensuing
damage. This is always a sensible precaution to take in order
to make sure you are paid in full. The insurance company will
nearly always send a loss adjuster to report on the damage
claimed for and you are entitled to use a court bailiff or
another insurance expert to prepare your own report for a
fee.
Policies
are renewed automatically in France and you are given a period
of time before the renewal date when you can cancel the policy.
Once this date has passed it is too late to cancel. You will
receive a warning from the insurer for renewal and you should
usually pay within 10 days or so of the set date. Either set
up a standing order or keep a written note of the exact date
when your policy is up for renewal.
A
word of advice: French house insurers often offer cover
that is more limited than UK policies. I would strongly advise
obtaining your insurance in the UK, have it written in plain
English and make it specifically designed for holiday homes
in France. We have done a tremendous amount of research to
find the best insurers who specialise in property overseas
and I would be delighted to help you with all your insurance
questions or indeed to find you the best policy. Click on:
http://www.francebuyingguide.com/resources.htm
to fill in our form and request futher assistance.
For more
information on buying in France get the France
Buying Guide!
|
