In July 2021, Luxembourg was hit by heavy weather, causing major flooding and considerable damage. These torrential rains put many people in very difficult situations, thus underlining the importance of being properly insured in case of a disaster. But how do the different insurance policies work for the condominium, the co-owner or the tenant in such a case? Here are the answers!
It is almost impossible to predict when a natural disaster will occur, but it is important to be well insured against its consequences. Typical coverages included in "natural disaster" insurance are: earthquakes, collapses, landslides and subsidence, public sewer backup caused by atmospheric precipitation, as well as flooding, such as river overflows, runoff and rising water tables. Flooding is one of the most common natural disasters, often causing significant damage.
You are strongly advised to contact your insurance company to check the guarantees included in your policy. It is essential to be well covered in the event of a natural disaster, in order to be able to deal with possible damage and financial losses.
Who should be insured?
First, the condominium must be insured, as the risks are significant and can involve large sums of money and affect all owners. Insurance premiums cover damage to the building and are paid by all co-owners with the building's charges.
The multi-risk home insurance is taken out by the co-owner who lives in the building and covers the contents. In addition to the risks covered for the furniture, the comprehensive insurance covers the co-owner in the event of a disaster that started in his private area and caused damage to neighbors or third parties, or to the common areas of the building.
As for the co-owner-lessor, it is wise to take out insurance to cover his private dwelling. Non-occupant owner's insurance can be a great help in the event of a claim, as it can fill the insurance gaps that may exist between the tenant's insurance contract and that of the co-ownership. It also allows you to cover the dwelling in case of vacancy or lack of insurance of the tenant of your dwelling.
As for the tenant, he/she must take out "rental risk" insurance. This contract covers the tenant's furniture, personal belongings, the building, his or her "private life" civil liability, as well as his or her civil liability as an occupant to the owner, neighbors and third parties.
It is advisable to check that the "natural disaster" guarantee is included in all the basic guarantees, whatever your status within the co-ownership.
In the event of a disaster, the owner must inform his syndic for the damage caused to the building and his insurance.
