Property Insurance in France

A Complete Guide for Owners, Buyers, Tenants & Landlords

Insurance in France is a subject that many international buyers and landlords underestimate until a claim or a legal dispute forces their hand. The French insurance framework is remarkably comprehensive layering statutory obligations on top of strongly advisable covers and varies considerably depending on whether you occupy, let, or simply hold a property. This guide maps every relevant policy from compulsory to optional, covering owner-occupiers, landlords running long-term or short-term lets, tenants, and borrowers who have financed their purchase with a French mortgage.

The Legal Landscape at a Glance

French law draws a clear distinction between insurance that is legally required (obligatoire) and that which is strongly recommended but not statutorily mandated. In practice, however, 'strongly recommended' often means 'required by your lender, your co-ownership syndicate, or your letting agent.' Understanding which category each policy falls into and for whom is the first step to building a properly protected position.

Owner-Occupier Insurance

Assurance Multirisque Habitation (MRH) - Strongly Advisable

The comprehensive home-and-contents policy known as multirisque habitation (MRH) is not, strictly speaking, compulsory for owner-occupiers but in practice it is unavoidable. Any lender will require it as a mortgage condition, and any syndic de copropriété will require evidence of at least third-party liability cover before you take possession in a shared building. The policy bundles several sub-covers:

• Incendie et risques annexes - Fire, explosion, and lightning damage to the building and its contents.

  
  

• Dégâts des eaux - Water damage from burst pipes, appliance leaks, and infiltration, one of the most frequent claims in Alpine and Riviera properties.

  
  

• Catastrophes naturelles - Flood, landslide, and earthquake. By law all MRH policies must include this cover; the premium is regulated by the state.

  
  

• Vol et vandalisme - Theft and malicious damage to structure and contents.

  
  

• Responsabilité civile - Third-party liability for bodily injury or property damage caused by you, your household, or your home.

  
  

• Bris de glace - Breakage of windows, glazed doors, and mirrors.

Alpine chalets deserve particular attention: roof snow-load damage, burst pipes from hard freezes, and balcony collapse are risks that standard urban policies may exclude or sub-limit. Always review the exclusion schedule with your broker before signing.

Assurance PNO (Propriétaire Non Occupant) - Compulsory in Copropriété (co-ownership)

Since the law (Loi Alur) of 2014, every owner of a property in a co-owned building (copropriété) must hold a PNO policy even if the property is empty, occupied rent-free by a family member, or under renovation. The policy protects the fabric of your unit and provides liability cover in the event that your unit causes damage to a neighbour or to the common parts, leaking pipes, a fire originating in your kitchen, or a falling balcony tile, for example.

PNO premiums are modest relative to MRH (typically €80–€200 per year for an apartment) and are entirely deductible as an owner expense under the régime réel (Tax Regime) if the property is rented.

Assurance Dommages-Ouvrage - Compulsory for New Builds and Major Works

The dommages-ouvrage (DO) policy is the cornerstone of French construction law and of direct relevance to every off plan VEFA buyer. Required by the law Loi Spinetta, it is taken out by the project developer before construction begins and transferred to each buyer at completion. It provides a 10-year guarantee (garantie décennale) against structural defects, foundations, load-bearing walls, roof watertightness without the buyer needing to prove fault on the part of the contractor.

• What it covers: Structural failure and hidden defects that compromise the solidity of the building or make it unfit for habitation.

• Duration: 10 years from the date of practical completion (réception des travaux).

• Who pays: The developer funds the premium; the policy transfers to successive owners automatically on resale within the 10-year window.

• Complementary cover: The biennale (2-year) guarantee covers equipment such as heating systems and shutters; the parfait achèvement guarantee covers defects notified at handover for one year.

Mortgage Insurance (Assurance Emprunteur)

Any buyer financing a French property purchase with a mortgage whether a French bank or a foreign lender with a French charge will be required to hold assurance emprunteur (also called assurance de prêt immobilier or ADI). This is not a building insurance product; it covers the repayment of the outstanding loan balance in the event that the borrower cannot do so through death, disability, or in some policies, involuntary unemployment.

Whilst technically separate from property insurance, mortgage insurance has a direct impact on the financial security of the property asset and is worth understanding in detail.

Standard Guarantees

• Décès (DC) - Death cover. The insurer repays the outstanding capital to the bank. Compulsory on all mortgages.

  
  

• Perte Totale et Irréversible d'Autonomie (PTIA) - Total and permanent loss of independence requiring full-time care. Compulsory alongside DC.

  
  

• Incapacité Temporaire Totale de Travail (ITT) - Temporary total inability to work, typically after accident or serious illness. The insurer covers monthly repayments during the incapacity period.

  
  

• Invalidité Permanente Totale (IPT) / Partielle (IPP) - Permanent disability above or below a defined threshold of incapacity. Cover levels vary significantly by contract.

• Perte d'emploi (optional) - Covers mortgage payments during involuntary unemployment. Rarely cost-effective and subject to exclusions; review carefully.

Key Regulatory Rights: Loi Lemoine (2022)

Since 1 June 2022, borrowers may terminate and switch their mortgage insurance contract at any time, with no notice period and no penalty, provided the replacement policy offers equivalent cover (équivalence de garanties). This right applies immediately from day one of the loan and is permanent, you are no longer locked into the bank's group contract. A good opportunity to shop around.

Capital vs. Instalment Cover

Mortgage insurance is structured either on the capital outstanding (capital restant dû - the most buyer-friendly form, as the insured sum falls in line with the debt) or on the initial capital (capital initial - simpler to price but more expensive over time). Always confirm which basis applies when comparing quotations.

For co-borrowers, cover is expressed as a percentage quota. A standard split for a couple is 100% on each borrower, meaning the full loan is repaid on either death though many lenders accept 50/50 or 70/30 splits for cost-saving purposes.

Tenant Insurance

Assurance Habitation Locataire - Compulsory

Unlike in many countries, tenant insurance in France is a legal obligation. Under Article 7 of the law Loi du 6 juillet 1989, a residential tenant must hold at minimum a responsabilité civile locative (rental liability) policy throughout the tenancy. Most standard tenant MRH policies include this as a core component alongside contents cover.

At the start of the tenancy the landlord must request an attestation d'assurance (Insurance Cover) from the tenant. If the tenant fails to provide it, the landlord may either terminate the lease (after formal notice) or take out a policy on the tenant's behalf and recover the premium through the rent. The attestation must be renewed and provided annually on request.

• Responsabilité civile locative - Covers damage caused to the landlord's property (fire, explosion, water damage). Minimum €460,000 indemnity.

  
  

• Contents cover (mobilier) - Optional in law but standard in practice; covers the tenant's own furniture, electronics, and valuables.

  
  

• Recours des voisins et des tiers - Covers claims from neighbours arising from an incident originating in the rented property.

⚠️ Landlord Due Diligence: Never allow a tenant to take occupation without a signed attestation d'assurance in your possession. If a tenant's policy lapses mid-tenancy and an incident occurs, you as landlord may bear the financial exposure for uninsured damage to the structure of the building — which in turn could affect your relationship with the copropriété.

Long-Term Rental: Landlord - Owner Covers

PNO (Propriétaire Non Occupant) - Compulsory in Copropriété

As outlined in Section 2, PNO cover is compulsory under the Loi Alur for any co-ownership property, regardless of occupancy status. For a landlord letting a property in an apartment building, this policy sits alongside not instead of the tenant's own MRH policy, covering any gap that arises when a tenant's policy does not respond (for example during a period of vacancy between tenancies).

Garantie Loyers Impayés (GLI) - Strongly Advisable

GLI is not compulsory, but it is one of the most commercially valuable protections available to a French landlord. The policy covers:

• Unpaid rent - The insurer pays rent and charges when the tenant defaults, typically from the second or third unpaid month onwards, up to a defined ceiling.

  
  

• Legal costs - Litigation costs to pursue the tenant through the courts, including bailiff fees and legal representation.

  
  

• Vacancy indemnity - Some policies offer a limited payment period after a tenant leaves following an eviction or abandonment.

• Degradations locatives - Cover for damage to the property beyond fair wear and tear that exceeds the tenant's deposit.

GLI premiums typically range between 2.5% and 3.5% of annual rent and are deductible as a landlord expense. Eligibility requires the tenant to meet income criteria (income typically three times the rent) and the property to comply with decent housing standards (décence).

Note that GLI cannot be combined with the government-backed Visale guarantee (a free guarantor scheme for eligible tenants). If a tenant holds a Visale, separate GLI is not required.

Protection Juridique Locative - Advisable

Even with GLI in place, standalone legal protection insurance (protection juridique) is worth considering for landlords who own multiple units or who are managing properties remotely. It extends cover to disputes beyond rent non-payment, boundary disputes, contractor litigation, disputes with the syndic de copropriété, and appeals against administrative decisions.

Short-Term and Holiday Rental Insurance

The explosion of short-term rental platforms Airbnb, Vrbo, Abritel, Booking.com has created an insurance grey area that catches many owners off guard. A standard owner-occupier MRH policy or PNO policy will almost certainly exclude commercial rental activity, meaning that a single undisclosed booking could invalidate your entire cover.

Meublé de Tourisme - Leaseback & Furnished properties

What Standard Policies Exclude?

When you rent your property on a short-term basis (less than 90 consecutive days per booking under French law), you are operating a meublé de tourisme. This is classified as a commercial activity for insurance purposes. Typical exclusions under a standard MRH include:

• Theft or damage caused by paying guests

• Liability claims from guests injured on the property

• Damage caused by one booking group to the next group's belongings

• Malicious damage or deliberate destruction by a guest

• Loss of rental income following an insured event

Specialist Short-Term Rental Cover

A dedicated location saisonnière ( Seasonal Rent) or meublé de tourisme policy replaces or extends the standard MRH to address these gaps. Key features to look for include:

• Responsabilité civile villégiature - Landlord liability for bodily injury or property damage suffered by guests during their stay.

  
  

• Vol par les locataires -Theft by the paying guest, which is explicitly excluded from most standard policies.

  
  

• Perte de loyers - Compensation for booked revenue lost because the property becomes uninhabitable following an insured event.

  
  

• Assistance and emergency services - 24-hour emergency helplines and contractor coordination, particularly valuable for remote Alpine chalets.

Platform-Provided Cover: AirCover and Equivalents

Airbnb's AirCover programme provides up to USD 3 million in host liability protection and up to USD 3 million in host damage protection per incident. Whilst useful as a backstop, it is not a substitute for a dedicated insurance policy because:

• Platform cover is governed by the platform's own terms and conditions, which can change.

  
  

• Claims must be submitted through the platform and are subject to its arbitration process, not French insurance law.

  
  

• French liability law (responsabilité civile) operates independently of platform indemnities.

  
  

• Platform cover typically excludes cash, securities, collectibles, and certain high-value items.

💡 Insight: For Alpine chalets and Riviera villas operating as premium holiday rentals, we strongly recommend combining a specialist location saisonnière policy with the platform guarantee, not treating them as alternatives. The platform guarantee handles minor guest damage efficiently; the specialist policy handles the larger scale, legally consequential scenarios. Always inform your insurer in writing of your intended rental activity, including peak occupancy numbers and any professional management arrangement. Non-disclosure at policy inception is the most common reason for claim rejection.

Additional and Advisable Covers

Protection Juridique (Legal Protection Insurance)

A standalone legal protection policy is one of the most cost-effective covers available to property owners in France. For a typical annual premium of €80–€150 it provides access to legal advice, representation costs, and dispute resolution services covering a wide range of property related scenarios: neighbour disputes, boundary disagreements, contractor defaults, building defect litigation, and tax authority challenges. For non-resident owners managing property at a distance, it provides peace of mind that local legal expertise is available without engagement of a private French avocat for every minor matter.

Catastrophes Naturelles and Catastrophes Technologiques

France mandates inclusion of catastrophes naturelles cover in all MRH and PNO policies, this is not optional. The premium surcharge is set nationally and is the same regardless of the insurer. A government declared state of catastrophe naturelle (Natural Disaster) triggers the policy; claims outside a declared event (a local flood not formally recognised, for example) may not be covered under this head, making it important to understand the scope of standard water damage cover as a complement.

Catastrophes technologiques cover (industrial and nuclear incidents) is similarly required by law in the vicinity of classified industrial sites (SEVESO installations). In practice this is included automatically in all standard policies.

Garantie Accidents de Vie (GAV)

This personal accident policy covers the policyholder and their household for serious injury or permanent disability arising from everyday accidents not covered by employer or state schemes, falls at home, sporting accidents, or burns. For Alpine property owners and frequent skiers it provides a meaningful complement to standard health cover and is particularly relevant for self-employed buyers not covered by compulsory professional accident insurance.

High-Value Contents and Fine Art

Standard MRH policies apply a single item maximum (usually €1,500–€3,000 per item) and an overall contents cap. For luxury properties containing high-value furniture, art, wine collections, or jewellery, a specialist avenant (amendment) or standalone fine art and valuables policy is essential. Items must be individually listed and appraised; some insurers require a professional valuation every three to five years.

Working with a Courtier (Insurance Broker)

The French insurance market is large and fragmented: regional mutuals (MAIF, MACIF, MMA), national networks (AXA, Allianz, Generali), specialist online providers (Luko, Leocare, April), and Lloyd's-backed cover for high-value properties all compete for the same clients. Navigating this as a non-resident with limited French is non-trivial.

A registered courtier en assurances is not tied to a single insurer and has a fiduciary duty to place cover in the client's best interests. For international buyers they provide four concrete services:

• Translation and explanation - French insurance policies are long and technical; a good broker will walk you through the exclusion schedule before you sign.

• Portfolio aggregation - For owners with multiple French properties, consolidating MRH, PNO, and GLI under a single broker simplifies renewals and ensures consistent cover.

• Claims management - A broker acts as your advocate during the claims process, liaising with the insurer's expert (expert en sinistres) on your behalf.

• Regulatory monitoring - Insurance requirements in France change (Loi Lemoine being the most recent major shift); a broker keeps your portfolio compliant as legislation evolves.

How Halle International Can Help

We work with a trusted network of English-speaking courtiers who specialise in property insurance for international owners across the French Alps and French Riviera. Whether you are taking out cover for a new build apartment in Cannes, a chalet in Morzine, or a luxury villa in Cap d'Ail, we can facilitate introductions to brokers who understand both the local risk profile and the needs of non-resident owners.

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