Published on: 14 February 2023
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How to Cancel Home Insurance?
When renting an accommodation, the owner will always ask you to take out home insurance of your choice in order to protect you against potential risks. This is a legal obligation and a prerequisite for validating your rental application and signing the lease successfully. Proof must be provided that such insurance is taken out. This insurance covers risks related to your accommodation, although it is recommended to declare certain assets with your insurer in order to have them covered too, although this may lead to a small increase in the monthly rate. With this insurance, you are protected in case of incidents such as fires, water damage or burglaries for example. Insurance companies offer various contracts for sale depending on your situation and associated risks but home insurance can usually also be taken out at most banks. If you rent an accommodation through Studapart, you can even opt for our integrated home insurance tailored for tenants - making things easier by adapting to your situation.
As a tenant you must take out home insurance but you are also entitled to cancel it at any time after one year of membership without justification or notice due to the Hamon law. Let’s look into this further.
When is it Possible to Cancel my Home Insurance?
You want to cancel your home insurance but you wonder if you are within your rights? We explain to you all the steps to follow!
When subscribing to a home insurance contract with an insurer, you are engaging with them under several conditions - these define each party's commitments and also your rights if you wish to modify or terminate your contract. These same rules apply regardless of nationality and for the duration of stay in France.
If termination is a request from your part, it can be done on the anniversary date of your contract after first year or for any reasons mentioned in subscription terms (i.e. moving, death etc...) without prior notice. The contract may also be terminated by the insurer under certain conditions. In all cases, notification should be made in written form and necessary measures should be taken by either party upon reception.
The anniversary date of your contract corresponds to its annual expiration and tacit renewal date - it is the date on which you signed it and also the moment when you must pay your insurance premium. Legally, your insurer is obliged to send you a notification reminding you that you are entitled to cancel your contract, indicating the expiration date and the deadline for requesting termination. This notification can be made by letter or any other means of communication and must be sent to you at least 15 days before the cancellation deadline. However, you are not required to wait for the receipt of this notification in order to request termination. However, if you wish to terminate your contract at this time, make sure to inform your insurer at least 2 months before the due date.
Termination after the first year
After the first year, when renewing your contract, you are entitled to terminate it at any time without justification and without being penalized thanks to the Hamon law. You are no longer required to wait until the anniversary date. If you are a tenant, you cannot cancel your contract yourself. Since the law requires you to insure your property against potential risks and to prevent it from being uninsured after canceling your contract, you must approach another insurer and subscribe to a new contract before canceling the old one. Upon receipt, it is the new insurer who must take care of the procedures for terminating your previous contract with your former insurer, by sending the necessary documents proving that your property remains covered.
Termination due to change of circumstances
Certain changes in circumstances may allow you to terminate your home insurance contract at any time and before its anniversary date. These conditions are specified in the documents you sign when subscribing.
These changes concern your personal life and group together cases where the risks covered by the contract are modified. This can include:
- Civil unions, marriage, divorce, etc.
- Modification of a marriage contract
- New professional situation
- Retirement or permanent cessation of work
You are legally required to inform your insurer of any change in circumstances that could affect your insurance contract and the risks it covers. If you do not do this, your insurer may not compensate you in case of loss. You have 15 days to inform them. Afterwards, you have 3 months after the event to terminate your contract by justifying your situation with the necessary documents.
How to cancel my home insurance contract?
If you wish to terminate your home insurance contract, make sure you are within your rights (maturity date, change in circumstances, after the anniversary date, etc.) and comply with the law by ensuring that your current accommodation remains covered or that your future accommodation is covered before you move in.
To inform your insurer of a change in circumstances, modify or terminate your contract, you can do so by the following means:
- Writing a certified letter (example below).
- Making a statement on site, at the insurer's premises or at its representative's.
- By extrajudicial act (with an commissioner of justice).
- Digitally (email, telephone, insurer's website, etc.).
- By any other means allowed in the contract.
In case of cancellation and if you are within your rights, it will take effect within 1 month after receipt of notification by your insurer.
In case of death, the termination of your contract will not be automatic and your property will remain insured. It will be up to your heirs to decide whether to continue the contract (and therefore pay premiums) or cancel it.
Here is an example letter in french that you can send to your insurer if you wish to cancel your contract:
À partir du (date), je n’occuperai plus l’appartement assuré auprès de votre compagnie sous le numéro de contrat (référence du contrat). En effet (indiquez votre nouvelle situation et expliquez le plus précisément possible en quoi ce changement va modifier votre situation antérieure).
Je souhaite donc résilier mon contrat d’assurance multirisque habitation souscrit auprès de votre compagnie, conformément à l’article L. 113-16 du code des assurances.
Je vous remercie par avance de bien vouloir me faire parvenir le plus rapidement possible le montant de la cotisation correspondant à la période pendant laquelle la garantie ne sera plus appliquée, ainsi qu’un avenant de résiliation.
Veuillez agréer, Madame, Monsieur, l’expression de mes salutations distinguées.
(source : https://www.inc-conso.fr/content/assurance/vous-resiliez-votre-contrat-multirisque-habitation-avant-son-echeance-pour-cause-de)
When can I cancel my home insurance?
It is possible to cancel your home insurance contract at several times:
- By making a request 2 months before the anniversary date of your contract. You are however obliged by law to keep your accommodation insured. If you change insurers, it is up to your new body to arrange the termination with the old one.
- At any time after the first year of commitment. You will not pay any additional fees if you decide to cancel your contract after its anniversary date. Again, the law requires you to keep your accommodation insured. The cancellation takes effect within 1 month after the request.
- Within 3 months in case of change of circumstances. If your personal situation evolves, you can request cancellation as long as the reason is accepted in the provisions of the contract.
How to subscribe to home insurance?
As a tenant, you are legally required to take out home insurance for your accommodation, even if you have signed a short-term lease. This is not the case if you own the property, unless in a co-ownership situation.
This insurance covers you in case of an incident occurring in your home, such as water damage or fire, etc., and allows you to be reimbursed. Your insurer must provide you with details of the conditions that apply when taking out this policy.
You can find an insurer through a simple internet search; most companies will allow you to sign up online (and also cancel online). You can also call or visit an insurance company. Banks often offer interesting deals too, so don’t hesitate to check with yours; they may offer special rates if you are already a customer. Make sure to get quotes from several companies to compare offers.
Studapart also provides an adapted home insurance solution suitable for your situation. It covers most incidents like:
- water damage,
- natural disasters
- and includes civil liability.