Is fire insurance mandatory?
Purchasing fire insurance as a property owner is not mandatory.
However, as will be shown below, YOU would do well to purchase fire insurance.
Even as a tenant, it is best to purchase fire insurance.
We have already discussed the particular issue of waiver of recourse in a previous blog post.
Misleading name:
Contrary to what the name suggests, fire insurance often covers much more than the mere risk of fire.
For example, fire policies usually also provide coverage for water damage, and by law, they also include natural disasters.
Legal Aid:
A very interesting option as a policyholder is legal expenses coverage.
If You take out this option, in the context of a dispute relating to a covered claim be it fire, theft, water damage, the insurer will ensure that You receive legal assistance.
Initially, the company itself will take the necessary steps to represent your interests e.g. against liable third parties.
If the company fails to have a satisfactory outcome, You will be allowed to consult an attorney at the insurance company’s expense.
Theft:
Theft coverage is also usually optional.
If You choose this option, in case of theft, the insurance company will also intervene for the damage suffered to the extent that the stolen goods cannot be recovered.
However, as the insured, you would do well to read the policy carefully.
After all, the general or special terms and conditions will often dictate what duties YOU have to avoid theft.
It usually involves locking all windows and doors when You are not home, possibly providing an alarm system, etc.
If you often have valuable goods in your home (such as jewelry) or large sums of cash, you will have to declare this to the insurer and pay a higher premium for theft coverage.
What on the sale of the property:
An interesting case involves the situation where a property is sold.
Many people do not know this, but according to Article 111 of the Insurance Law, the individual fire insurance policy taken out expires three months after the date on which the notarial deed was executed unless this policy was already terminated earlier.
This means that the seller’s insurer may have to intervene for claims up to three months after the execution of the notarial deed.
However, this does not apply if the policy was previously terminated.
However, it is recommended that the buyer of a property take out their own fire insurance this is to avoid all discussions.
Do you have questions about insurance law?
Contact Peterfreund & Associates, your insurance law attorney.
