Found Your Dream Ski Property in the French or Swiss Alps? What about Insurance Requirements?
You’ve chosen your dream ski home in France, you’re on your way to securing a mortgage – what’s next? Insurance.
Two types of insurance are needed when you buy your ski apartment or chalet in France:
- Building and Contents Insurance (“Assurance Habitation”) which covers the property itself AND
- Mortgage Protection/Life Assurance (“Assurance Emprunteur”) which is much like life insurance, and covers the borrowed amount of the loan in the event of death or total and irreversible loss of independence.
Building and Contents Insurance
Building, property and contents insurance is absolutely necessary and must be in place before you sign the deed of purchase. Upon signing the deed, your notary will ask for a copy of your policy.
Mortgage Protection/Life Assurance
Taking out a mortgage protection policy to cover the amount of a property loan is not a legal obligation in France. However, you should be aware that most French banks do not offer loans without it. In most cases, the mortgage protection and loan application are treated simultaneously.
Mortgage protection is available in two options:
- Cover of the remaining capital due in case of death or disability.
- Cover of the monthly payments in case of long-term incapacity due to accident or serious illness.
Building insurance is mandatory in Switzerland, so when you have nabbed yourself a ski apartment or chalet, there are a few matters which must be dealt with. As soon as the property is signed over, the insurance cover provided to the former owner lapses so it is important that your new home is covered from the get-go. The following information provides a few tips about types of building insurance in Switzerland. Thanks to the guys over at Swiss Mobiliar for sharing it with us.
Household and Contents Insurance - Loss of or damage to objects in the house due to natural hazards, fire, water, glass breakage or theft.
Third Party Liability Insurance - Injuries of third parties and loss of or damage to third party property.
Building Insurance for Period of Construction - Damage to the building during construction due to fire or natural hazards.
Liability Insurance - Claims for personal injury due to construction work.
Construction Insurance - Damage to the building under construction caused by unknown third parties.
Purchase of a Building
Mandatory Building Insurance - Damage to the building due to fire or natural hazards.
Water Insurance - Covering water damage to the building due to burst pipes, rain/snow/melt water, sewage system issues or ground water.
Glass Breakage Insurance - Breakage of glass fixed to the building.
Building Liability Insurance - Claims for personal injury and property damage suffered by third parties. Where the house is lived in by its owners, this will be covered by Third Party Liability Insurance. Where the house is let out, or larger houses (> 3 people living in the abode) Building Liability Insurance will need to be taken out.
Purchase of a Condominium Apartment
There are several types of insurance which must be bought in conjunction with the other apartment owners.
- Cantonal Building Insurance
- Water and Glass Breakage Insurance for the Building
- Accident Insurance for Caretakers
- Joint Liability Insurance for the Community Owners
For more information on purchasing aoartment or chalet in France or Switzerland, please click on the following links: