Home insurance may be compulsory, but some tenants do not subscribe to it. To overcome this problem, the Alur law allows owners to take out insurance on behalf of the tenant by following a precise procedure. Explanations.
Home insurance: the tenant’s obligations
In the context of an unfurnished rental, the tenant must take out home insurance with the company of his choice by the law. This insurance protects him against rental risks, such as water damage, material damage, explosion, fire, etc.
The tenant must also prove to his owner that he has taken out compulsory home insurance by providing him with a certificate when the keys are handed over each time the contract is renewed. Lack of insurance is one of the termination clauses in lease contracts, such as non-payment of rent or charges.
On the other hand, the home insurance obligation does not apply in the context of a furnished rental. However, in the event of a claim, the tenant must still answer for the damage caused.
Landlord: what to do in the event of a tenant’s insurance default?
Some homeowners have to deal with their tenant’s refusal to purchase home insurance. In this situation, the owner has two possibilities:
- Terminate the tenant’s lease contract;
- Take out insurance on behalf of the tenant; take out home insurance instead of the latter. A possible solution since the entry into force of the Alur law of March 2014.
Note that if the owner chooses this second option, he loses the possibility of terminating the lease for lack of insurance, even in a termination clause.
The terms of insurance on behalf of the tenant
Terminating a tenant’s lease is a cumbersome and complex procedure. Often, it is easier for homeowners to purchase insurance on behalf of the tenant. Homeowners must nevertheless follow a process to take out home insurance for their tenants.
First, the lessor must send a registered letter with acknowledgement of receipt to the lessee, explaining his desire to take out insurance in his place. The tenant then has one month to take out insurance on his own.
If at the end of 1 month, the tenant has not taken out home insurance, the owner is entitled to contract one himself. He must also send the tenant a copy of the insurance certificate.
If the tenant wants to end the insurance taken out by the owner, he must necessarily take out one personally.
Who pays the housing premium?
The lessor pays the annual housing premium but recovers it in twelfths with each rent payment. In addition to the rent, the tenant must pay 1/12 of the total amount of the owner’s premium residential purchase. The owner is entitled to increase this premium by a maximum of 10% to make the tenant responsible.
The amount recovered must be entered:
- On the due notice;
- On the receipt given to the tenant.