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Posted at January 9, 2020
You own an apartment in Paris and have decided to rent it out. But is your apartment well-protected while looking for a tenant or during the rental period? Not so, and yet there is a specific contract to remedy this situation: it is the Non-Occupant Owner's Insurance (called PNO in French for Propriétaire Non-Occupant).
The non-occupant house insurance is a type of home insurance for rental property homeowners who do not live in an apartment. This insurance protects real estate, whether it is unoccupied, rented, or even occupied rent-free. Any home, even empty, can be subject to disaster: an exploding pipe, a short-circuit causing a spark to fire, etc.
However, this insurance is not compulsory for all landlord owners. Only people whose property is in a condominium must necessarily take out insurance for disasters that may damage the entire property or that of its co-owners. (source: https://assurance-habitation.dispofi.fr/proprietaire-bailleur).
The PNO insurance contract - also called CBNO insurance (for Complementary Non-Occupying Lessor) - should not be confused with the coverage for a secondary home. Indeed, a secondary residence is inhabited occasionally by the owner or his family, who then subscribes to regular home insurance.
Non-occupant homeowner insurance is very similar to the so-called multi-risk home insurance. It offers some equivalent guarantees:
But non-occupant owner insurance (French PNO) also offers guarantees relating to the rental of the property. These guarantees depend on the insurers, but it is possible to find:
Although PNO insurance is compulsory for property located in a condominium, one could question it. For, if the apartment (or house) is rented, the insurance taken out by the tenant does not cover all damages. PNO insurance supplements the tenant's coverage to protect the owner's property. Besides, not all damage is the tenant's responsibility (ex: construction defect, pipe exploding due to frost).
Non-occupant homeowner insurance is also useful for tenants. Indeed, the outgoing tenant cancels his home insurance when leaving the accommodation. If a claim occurs before the arrival of the next tenant, it will not be covered without PNO insurance.
Finally, PNO insurance comes at a reasonable cost, and insurance premiums are deductible from landlord income. Therefore, it is advantageous to protect your home throughout the year, whatever its rental situation.
The best way to secure your property in France is to contract non-occupant house insurance as soon as possible, whether the property is rented or unoccupied.
Paris Rental and Home Management in Paris can help you by recommending trustworthy insurance companies that speak English. Don't hesitate to ask by calling +33 (0)1 43 12 98 00.
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