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French House Insurance Guide

Owning a French holiday home can be an excellent investment and rewarding experience. Unfortunately, many owners cut corners when it comes to choosing house insurance in France and only discover they aren't properly covered when making a claim - and it's too late.

Whether you are going to use your house in France as a holiday retreat or let it for investment income, it is essential that you arrange suitable insurance cover. Most insurers see bigger risks associated with holiday homes because they are left unoccupied for long periods, prone to burglary and weather damage. Therefore, finding comprehensive French property insurance can be difficult.

By following these tips you will have a good idea of what cover you need and the restrictions to identify that can render a French house insurance policy virtually worthless. This is by no means an exhaustive list, so if you have any further queries please contact us.

Should I arrange insurance with a local broker in France or a UK based insurer?

If the purchase involves a mortgage, the lender or notaire will insist a sufficient level of buildings cover is in place to protect the loan, or they may recommend a French Insurer. This may seem the easiest option but it may cost you dearly in the long run. Before you choose house insurance in France from a foreign insurer, it is important that you read the small print so you understand the scope and restrictions of cover. This can be a problem if the policy is written in French and you aren't fluent. If in doubt get it translated.

You may find that policies offered by French insurers are cheaper, however - insurance isn't universal and foreign cover is often less comprehensive than what we are used to in the UK. It is a false economy to choose the cheapest policy at the expense of the cover you need. You may be better off choosing a comprehensive French house insurance policy in the UK, that's written in plain English and specifically designed for your French holiday home.

What cover do I need for my holiday home in France?

Buildings insurance in France

Buildings insurance generally covers the actual structure of your house in France, outbuildings, garages, swimming pools, walls, gates and fences. These tend to be covered against the cost of repairs or rebuilding following loss or damage caused by earthquake, fire, storm, flood and burst pipes. Building insurance should also cover permanent fixtures and fittings within the buildings, such as fitted kitchens and bathrooms. Some French policies may exclude swimming pools and outbuildings from the buildings cover so check these are included.

How much should I insure the buildings for?

Most people think they should insure for the current market value of their house in France. This is not the case. The sum insured needs to cover the cost of rebuilding the property. The rebuild value is the full cost of reconstruction of the building(s) in their present form, including any associated costs, such as removal of debris, architectural and other professional services. This amount must include all outbuildings, barns, domestic oil & gas pipes, domestic oil fuel tanks, swimming pools, tennis courts, drives, patios, terraces, walls, gates and fences. The price of the land should be excluded.

How do I calculate the rebuild value?

Calculating the rebuilding cost of French house can be difficult, especially if you have bought and renovated an old cottage or farmhouse. To get an accurate figure a qualified surveyor should be commissioned to assess the amount that a property should be insured for. Your lawyer, vendor or builder may also be able to advise you on the rebuild cost. Alternatively, if you had a survey report done on the property there may be a rebuild figure listed for insurance purposes.

Be aware that it is your responsibility to communicate the correct rebuilding cost to your insurer. It is important to get this figure right because if you underinsure you may not get the full amount you were expecting in the event of an insurance claim. Most insurers will automatically index link at renewal, which means the sum insured will be adjusted yearly to take into account changes in rebuilding costs.

What contents insurance do I need?

Contents insurance typically covers general contents within your holiday home in France such as furniture, furnishings and electrical equipment. Most policies cover your contents in the event of fire, storm, flood and theft. To calculate the contents sum insured you should work out how much it would cost to replace your contents on a new for old basis at today's prices. As a rule of thumb when deciding what are contents, include everything you would take with you if you moved home. Not forgetting items in the garden.

It is important that you get this figure right and don't undervalue your contents, as in the event of an insurance claim you may not get the full amount you were expecting. French home insurance policies do not usually cover personal valuables as most properties are often left unoccupied for long periods or holiday let. If you take valuables to your French holiday home you should insure them under the all-risks section of your main household policy or travel insurance.

Do I need to cover contents for accidental damage?

It's surprising what can get broken. If you are going to holiday let your French home choose a policy that covers accidental damage to your contents, including damage caused by holidaymakers (e.g. if a holidaymaker damages a chair or TV). Guests often aren't as careful as you and accidents do happen.

Am I covered when my French house is unoccupied?

You will find that most insurance policies exclude cover when a French property is unoccupied. Some insurers insist the water system is drained during periods of unoccupancy, or that the property is heated constantly to a specified minimum temperature. Would you be insured if your electric heating failed due to a power cut (or you forgot to drain the water) and a burst pipe occurred? Choose a policy that doesn't include complex unoccupancy terms, such as Schofields.

Many parts of France experience sub zero temperatures during winter. Ensure you are covered for burst pipes as water damage is a major threat to unoccupied holiday homes.

What security precautions do you have to take?

Check for the insurers security requirements. Do you have to inspect the property regularly, install specific locks, shutters or grills on windows? You could even find insurance invalidated by having the wrong type of locks on the doors or by not using the shutters when you go out.

Is comprehensive theft cover provided?

Holiday homes in France are attractive to burglars as it is relatively easy to identify when they are occupied or empty. Check that theft by non-forced entry is covered, for example a burglar entering through an unlocked window, door or using a key. Many policies require proof of forced entry.

When holiday letting to virtual strangers it's also important to ensure theft by guests is covered.

What about employers & public liability insurance?

It is very important that you choose a policy that includes public liability insurance and that it extends to cover holidaymakers if you are planning to let your holiday home. These are litigious times and liability insurance will cover you for legal costs and expenses following death, injury or damage to a third party on or near your property. For complete peace of mind a minimum indemnity of £3m is recommended.

Even if you aren't planning to holiday let your property in France, it is still advisable to get suitable liability cover. What would happen if you let a friend stay at your holiday home and they caused a fire or slip in the shower, injure themselves, and have time off work. Maybe they would have to take legal action against you?

If you have a swimming pool ensure that in the event of an accident you are covered under your public liability insurance. You should also check the insurer's requirements regarding the French pool safety law. You may discover that unless your swimming pool is properly gated and fenced off with a suitable AFNOR approved pool security system in place, some insurers may invalidate swimming pool cover.

Liability insurance for renting

As previously mentioned, insurance practices are not universal. French insurance usually doesn't cover the property owner for public liability or damage when renting. In France, it is the renters responsibility to have this insurance. This isn't an issue if you holiday let to French, but it is likely that the majority of your guests will be from other countries - mainly the UK. These holidaymakers will find it difficult to get this cover. Taking out a UK policy eliminates this problem as the owners insurance usually covers letting and damage by guests.

In summary, ensure you (and guests) are covered should a flood or fire for example, damage yours or a neighbours property.

Don't forget to include employers liability insurance in your policy. This protects you against legal action from injured domestic employees, such as change over staff or the gardener.

Do I need cover when holiday letting against loss of rent and alternative accommodation?

If you plan to commercially holiday let your house in France it is important that you choose a policy that allows you to do just that. Some insurers only cover use by friends and family as letting can increase the risk of a claim.

One of the biggest worries when holiday letting is if your property becoming uninhabitable as a result of the unexpected, like a burst pipe or a fire. During the peak holiday season such a disaster could mean thousands of pounds in lost income and a huge inconvenience for many months. Choose a policy that will allow you to claim for the loss of rental income and pay for temporary accommodation for you or your holiday guests.

Also, check your policy covers travel costs incurred in getting you to your holiday home in France following a large claim - you'll probably want to be there to organise repairs and replacements.

Trying to claim and language problems

There are many questions to bear in mind when you need to make a claim. Will your insurer be capable of sorting out a claim quickly and efficiently when something goes wrong - given that you are hundreds of miles from your property in France? Will they appoint loss adjusters?

Be aware that some French house insurers require criminal claims to be reported to the police within 24 hours. A five-day limit also applies to general storm damage claims. However, this can be extended to 10 days to declare flood damage to the insurer, but only if the government declares a state of "Catastrophe Naturelle" (natural disaster). If you discover damage weeks or even months after it occurred, you could have a problem claiming.

Also pay attention to the small print in relation to storm and flood cover. Some insurers require minimum wind speeds or rainfall levels to be recorded in order for a claim to be valid.

Does your insurer have the authority to manage claims and make decisions in-house or is the claims handling process out-sourced to a call centre? How quickly will you receive settlement? If your command of the native tongue is low, how easily will you be able to fill out claims forms in French? Make sure you are aware of the policy excesses in the event of a claim. These can be substantial, especially for earthquake claims where some insurers charge a percentage of the sum insured.

Understanding exactly what a policy covers in the event of a claim can be a challenge, even in English. If you choose a policy written in French, have the document properly translated so you understand what you are getting.

Complaining and Legislation

Insurance regulations and conditions are not universal and the terms for insurance you may reasonably expect in the UK are not the same abroad. Under the terms of a UK sourced policy, if you are a UK resident, UK law applies so you don't have to worry about complications regarding obscure French laws and regulations.

French insurers also have their own labyrinthine complaints procedures and unlike the UK, customers of these foreign providers generally do not have recourse to the equivalent of an ombudsman or the FSA.

Cancelling your insurance

Cancelling French house insurance can be very complex compared to the process in the UK. You can't cancel at the last minute with a phone call (insurance in France automatically renews). You must give written notice of cancellation as specified in the policy. Often, by the time you get the renewal notice it's too late to change.

Are local taxes included in the premium?

Insurers are required to collect insurance taxes on behalf of the Government, so check that any taxes are included in the final price of the premium, including the levy for "Natural Catastrophe" cover. In addition to the premium the following additional charges are made to premiums charged for French properties:

• Premium Tax
• Terrorist Fund
• Natural Catastrophe Levy

Take reasonable steps to reduce claims.

As you can see from the above, insurance doesn't cover every eventuality so it's important that you take reasonable steps to prevent claims. Leave a key with trusted neighbours who can check your property frequently to reduce the risk of theft, damage and alert you of any problems. Beware of freezing pipes in the winter months. Leaving the heating on (thermostatically controlled) can minimise potential danger and water damage. Always inform your insurer of any alterations you make to your holiday home that could alter the sum insured or its risk.

Remember, just because your holiday home is out of sight, it really mustn't be out of mind. Before you buy insurance, ask for a copy of the full policy wording. Check for any exclusions and understand your obligations - some of which may be unreasonable. Hopefully this will prevent any unpleasant surprises in the event of a claim.

Consider all the points above when choosing house insurance in France and you should be adequately protected. Choose a policy based on the value of cover - not price.

Next steps - Get an instant quote, view the French property insurance policy details or compare our house insurance abroad.

For further guides and advice, read our blog.

Disclaimer: this information should be used as a guide only and should not solely be relied upon. We advise that you read any insurance policy terms, conditions and exclusions thoroughly, seeking professional advice if necessary to fully understand the extent of cover provided.