Property insurance does not refer to a single contract but rather a set of coverages that come into play at different stages of a property’s life. Between the borrower insurance required by the bank, the multi-risk home insurance imposed on tenants, and the mandatory damage insurance for construction work, legal obligations vary depending on the occupant’s status and the nature of the project.
Understanding what falls under obligation, recommendation, or superfluous allows one to avoid both duplicate coverages and gaps in coverage.
Actual cost of construction claims: what insurers pay
Discussions about property insurance often focus on the premiums paid by individuals. The other side of the issue, that of the compensations paid by insurers, sheds more light on the extent of the covered risks.
According to France Assureurs, the benefits paid by construction insurers reached €2.359 billion in 2025, an increase of 2.7% after an 11.8% rise in 2024. This trajectory reflects both the rising cost of repair materials and the increasing frequency of certain structural issues.
Two guarantees are directly involved. The ten-year liability, which every builder must subscribe to, covers damages compromising the solidity of the work for ten years after acceptance. The damage insurance, subscribed by the project owner, allows for rapid pre-financing of repairs without waiting for a court to determine liability. In practice, many individuals who build neglect this second coverage, exposing them to compensation delays of several years in the event of serious defects.
To delve deeper into the coverage mechanisms related to a real estate project, insurance on Maestro Immo details the various protections according to the buyer’s profile.
Borrower insurance: required guarantees and negotiation margins
Borrower insurance is the most scrutinized item by banks when it comes to a mortgage. The contract covers the repayment of the remaining capital in the event of death, total or partial permanent disability, or temporary incapacity to work. Some lenders add unemployment coverage, but it remains optional and often comes with restrictive conditions.
Core guarantees and common exclusions
The information notice provided by the insurer details the exclusions, waiting periods, and deductible periods. These elements condition the reality of coverage far more than the displayed rate.
- The waiting period corresponds to the initial period during which no coverage is possible, even if a claim occurs. It varies by contract, sometimes up to a year for unemployment.
- The deductible period refers to the duration during which the claim remains the responsibility of the insured after its declaration. For temporary incapacity to work, it typically ranges from 30 to 180 days.
- Exclusions related to professional activity or the practice of certain sports can reduce the actual scope of the contract. An insured person engaged in a risky profession should check if their job is listed among the exclusions.
Share and termination
In a joint purchase, the insurance share determines the portion of the capital covered for each co-borrower. A 100%/100% split offers maximum protection but increases the premium amount. The decision depends on the respective incomes and the household’s repayment capacity in the event of a claim affecting one of the two.
Since the Lemoine law, any borrower can terminate their insurance at any time to choose another that offers at least equivalent guarantees. This possibility has opened competition between insurers and bank group contracts, but feedback from the field varies on the actual price difference obtained after a change.
Natural risks and home insurance: an evolving scope
Multi-risk home insurance typically covers fire, water damage, theft, and the insured’s civil liability. For tenants and co-owners, subscribing to a contract is mandatory. Owner-occupants who are not co-owners are not legally required to do so, but few choose to forgo it.
Recent news highlights a less covered angle by standard contracts. The vegetation fires that affected Gironde, Landes, and Var generated approximately 25,000 claims with an estimated insured cost of nearly €500 million, according to France Assureurs. These events raise questions about the compensation conditions related to the geographical exposure of the property.
Prevention and resilience of buildings
France Assureurs announced the publication of a directory aimed at improving the resilience of buildings against natural hazards, as part of the S.M.A.R.T. 2026 program. This approach goes beyond the traditional logic of compensation after a disaster to integrate prevention from the design or renovation of the building.
For a property owner, checking whether their home insurance includes a natural disaster guarantee is no longer sufficient. The maintenance of the land, regulatory clearing, and compliance of construction materials can condition compensation in the event of a claim related to vegetation fire or flooding.
Property insurance: distinguishing obligations based on status
The confusion between different coverages often leads to duplicates or gaps. A summary table helps clarify the actual obligations.
| Status | Borrower insurance | Multi-risk home insurance | Damage insurance |
|---|---|---|---|
| Tenant | Not applicable | Mandatory | Not applicable |
| Owner-occupant (co-ownership) | Required by the bank | Mandatory (at least liability) | Not applicable |
| Owner-occupant (individual house) | Required by the bank | Recommended | Mandatory if construction |
| Rental investor | Required by the bank | Recommended for non-occupying owners | Mandatory if construction |
The borrower contract protects the bank, not the property itself. Multi-risk home insurance protects the dwelling and its contents. Damage insurance protects the project owner during the post-construction phase. These three insurances cover distinct risks and do not substitute for one another.
Before signing a contract, reading the standardized information sheet and the notice allows for comparing actual guarantees rather than just premium amounts. The effective annual rate of borrower insurance, the compensation ceiling of the multi-risk policy, and the deductibles applicable in the event of a natural disaster remain the three most reliable indicators for assessing the quality of property coverage.
