How to take out the insurances you really need?

Did you know there were compulsory insurances in France? When settling in France, you realise how bureaucratic the country is. Many extra processes may be required from you, as opposed to what you are used to depending on where you are from. The world of insurances is no exception to this rule. In many instances, you will be requested to take out insurance, even though it is not mandatory. Also, you may even already be insured without knowing it. Here are some pointers to help you decide whether you actually need to take this insurance or not. Make sure you have the compulsory insurance in France, then, the choice is up to you.

Civil liability insurance: the first compulsory insurance in France

The civil liability insurance is one of the first insurance you will be required to take out in France, specifically if you are renting. Whether you are renting a furnished or unfurnished property as your main residence (as opposed to a holiday or short term rental), you will have to have insurance. The civil liability insurance is the minimum compulsory insurance you are required to take when renting a property. It covers the damages done to a third party.

The owner will request a civil liability insurance attestation before signing the rental lease contract.

However, this insurance doesn’t cover any damages caused to the property in case of a water leak, fire or explosion. So many people choose to take a broader coverage called the housing insurance “multi-risques”.

Housing insurance

So, we have seen that civil liability insurance was compulsory when renting a property but maybe not sufficient. The housing insurance is not compulsory insurance in France but it is highly recommended to take a “multi-risques” housing insurance. Your personal belongings and the property damages will be covered in case of a water leak, fire and explosion.

The multiple-risk insurances will also include the required civil liability insurance.

Home insurance is not mandatory for property owners. However, it is recommended to take one if you want to be compensated in case of damages.

The average cost of multiple-risk housing insurance is about 180 euros/year in France (152 euros/year for an apartment and 235 euros/year for a house). Several elements will impact the insurance premium such as:

• The property size
• The property location
• If you are owning or renting
• The estimated value of your belongings to be covered
• The options chosen

It is always good to put the insurance companies in competition as being a faithful client is not a criterion of a good deal in the French insurances world. You can use the Loi Hamon explained at the end of the article to switch insurance companies and save on the premiums! And good news, the new insurance company will take care of most of the paperwork.

To take a French housing insurance contract, the most common documentation request will be as follow:

• Proof of ID (passport, EU ID card)
• French bank details (RIB)
• Rental contract (for the tenants)

If you move, you should inform your insurance of your new address to transfer the coverage or cancel it. See further down regarding the insurance contract cancellation process.

Third-party car insurance

You bring your car from another EU country

If you are a car owner you will need to take out third-party car insurance when relocating to France. However, if you move temporarily as a student, pensioner, second homeowner or cross-border commuter from another EU country, this will not be required. If you bring your car from another EU country, with an EU plate registration and car insurance, you can use your insurance policy for up to 8 months. Of course, under the condition, the insurance company includes France under its coverage. You need to make sure with the insurance company that you will be covered in France and for how long.

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Driving in France: What are the requirements?

– Guiga from Expat in france –

You take out a French third-party car insurance

It is forbidden to drive a car in France without car insurance. The car insurance premiums vary a lot from one country to another due to different risk assessments methods, contract laws, or compensation schemes. Also, it is important to compare the insurances offers as some will not take into account your claims history in other countries.

The below information will be requested to contract a car insurance:

• The type of vehicle to be insured: brand, model, year
• The use of the vehicle (personal or professional)
• The people driving the car regularly
• Previous penalties received
• Your accident history
• Your previous insurance statement
• A copy of the registration certificate (called “carte grise” in France)
• A copy of your driving license

Health insurance: the inevitable compulsory insurance in France

It is compulsory to have health insurance when residing in France. Depending on your situation, you may apply for the French social security. Unless you come to France with a job, I usually recommend taking private health insurance for the first 6 months as the process can be lengthy. This is especially important if you have a medical history. The registration to the French public healthcare is not automatic and you will need to follow this process to be able to have your medical cost reimbursed.

If you are unemployed and/or an inactive EU citizen, you might be able to apply to French health care under your stable residence status after 3 months residing in France. Check this post where I explain into more details the process to follow and the conditions to benefit from the French healthcare.

Also if you are registered with the CPAM, do not forget to request your European Health Insurance Card (EHIC) to be covered when travelling to another European country.

School insurance

What is school insurance? And is it mandatory? The school insurance covers your children at school until secondary school in case of damages caused to themselves, others, or goods. As a general rule, this insurance is not mandatory for the curricular activities and the time spent within the school premises. However, this insurance becomes compulsory when extracurricular activities are being organised for your child’s class, for example, a visit to the museum or going to watch a sports game.

The school insurance is also required when your child is attending the school canteen and/or the even childcare (périscolaire).

The school insurance includes:

• the civil liability insurance (damages caused by the child)
• the bodily injury insurance for your child

Depending on the insurance you choose and the options, you may have a broader coverage.

Before contracting school insurance, check that it is not already included in your multiple risk insurance or other insurance you may have. If it is not included, the school can give you options, or you can also add this option to the insurance you already have for your property.

If your child changes of school, make sure you inform your insurance company.

Professional insurance

We have seen the general type of insurances that may be mandatory depending on your situation. There are also professional insurances that will be compulsory based on your profession. Many free-lance professions require specific insurance such as real estate agents, architects, lawyers, accountants, notaries…

The list is much longer. If you are a free-lance in France and you are not sure whether you need to take specific professional insurance, you should reach out the union for your branch or the chamber of commerce. They will be able to inform you.

How to cancel your insurance policy?

French insurance contracts are usually renewed automatically and if you missed the notice period to end your insurance contract, you had to keep the contract for another year… Imagine putting a notification on your calendar to remember ending your insurance contract on time!

Since 2015, the Insurance Code L-113-15-12, simplified the cancellation process for the consumer with what is called the Loi Hamon.

Your French insurance contract can now be stopped at anytime after one year contract. A 30-day notice will apply. In addition, if you are moving away (check out my article to prepare a stress-free repatriation), you can end your contract by sending a letter with recorded delivery including the proof of your move (plane ticket, transfer letter from your employer…).

If you are changing of insurance company, the new company will take car of the cancelation for you .

This cancellation simplification applies to the car and motorcycle insurance and the multiple-risks housing insurance.

In any case, when you know you may need to cancel your contract because you will be repatriating soon or any other reason, the best approach is always to call or e-mail your insurance company to know their policy and processes as it can be hard to read between the lines of an insurance contract!

To keep in mind

When you are offered to take out insurance when you go skying or for your credit card if it gets stolen, you first need to know if it is mandatory in France, then if you are already insured via your current insurance and of course if you really need it.

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