Are you hesitant to take out non-occupant homeowner insurance? You do not see the usefulness of it directly? How about taking the time to learn about the pros and cons of this insurance, more commonly known as PNO? Weigh the pros and cons of this article.
What is non-occupant homeowner insurance?
As you can imagine from its name, such insurance offers the landlord protections and guarantees if the accommodation is not rented. More specifically, it guarantees the lessor owner coverage equivalent to the multi-risk home.
This insurance is, therefore, to be differentiated from home insurance: the first only insures real estate that you own but in which you do not live, while the other covers risks within your main home. Non-occupant homeowner insurance is not compulsory, it is up to you to decide whether you deem it appropriate to subscribe to such a contract or not.
Is it really useful insurance?
One may wonder about the usefulness of non-occupant homeowner insurance, given that several other insurances guarantee the security of your home. The first example is co-ownership insurance, which offers all the guarantees with regard to incidents and accidents that may occur in the common areas of the building, whether in the hall or for the exterior. It is therefore insurance that covers a large part of your property.
In addition, the second point, if you are an owner and you rent your home to a tenant, you must have required your tenant to provide you with a certificate stating that he has taken out home insurance. It is compulsory insurance, which protects the building in which the tenant resides, but also his personal furniture. For more details on this point.
From this point of view, the PNO does not seem very useful, in the sense that housing is already covered in the event of disasters. On the other hand, there are some special cases, which occur more often than one might think in the life of a home, which demonstrate the importance of taking out non-occupant owner’s insurance.
Insurance needed in many cases
Let’s take an example: this is the case that best demonstrates the importance of taking out non-occupant homeowner insurance. This is the period when your accommodation is on “rental vacancy”, which means that no tenant is living in the accommodation you own.
Suppose there is a disaster, such as a water leak, which floods your home. Who should pay for the repair? In this case, it is the owner, and if the apartment is no longer insured, then it could cost you a lot. Here to find out more.
There is also a second situation in which purchasing non-occupant homeowner insurance can be useful. Indeed, it can happen that a disaster occurs in the accommodation, while the tenant is present and has ensured the apartment. But in some cases, the tenant’s insurance may not cover the claim in question. Also, in this case, having subscribed to a PNO is useful.
How much does it cost ?
Non-occupant homeowner insurance involves a reasonable premium. You should know that all the premiums of this contract are deductible from property income, and more particularly within the framework of the real tax regime for empty rental and BIC.
Regarding the amount of such insurance, it all depends on the offer and the insurer with whom you subscribe. A good tip: compare the offers between them to be sure to subscribe at an advantageous rate.