What are the owner's fire insurance qualifications?
What is the owner?
The owner is a person to whom a specific thing belongs. Ownership is the right to enjoy and dispose of things in the most absolute manner, provided they are not used in a way prohibited by laws or regulations (cf. 544 of the French Civil Code). The owner’s main insurance interest is the maintenance of the thing, such as its building and/or contents.
Secondly, an owner may have an interest in preserving his assets against a liability debt:
- extra-contractual (mainly based on articles 1382, 1383, 1384 and 1386 of the French Civil Code). This is the purpose of the “recourse to third parties” supplementary guarantee;
- contractual liability, in particular towards the lessee on the basis of article 1721, paragraph 2, of the French Civil Code (infra). This is the purpose of the “tenant’s recourse” supplementary guarantee.
What is a co-owner?
The insurable interest of a co-owner is identical to that of an owner, but for his share in the co-ownership. The insurance he takes out in his own name is valid only for his own share in the co-ownership (except in the case of insurance on behalf of a third party).
In the case of apartment buildings, the basic deed often makes it compulsory to take out a common policy for the entire building. Such joint insurance is often taken out by a syndic, in the name and on behalf of the general meeting of co-owners.
To compensate for individual differences, for example in completion, co-owners can separately and individually take out additional insurance to make up the capital shortfall, preferably with the same insurer to avoid potential disputes. Co-owners are advised to insure their contents with an insurer other than the one covering the building. This provides additional coverage for third-party claims.
What is the usufructuary or the bare owner?
The usufructuary’s interest Usufruct confers on its holder the temporary right to the use and enjoyment, in a prudent and reasonable manner, of property belonging to the bare owner, with the obligation to return it at the end of his right. Through his right of enjoyment, the usufructuary possesses a right :
- usage (Latin: “usus”);
- to the fruits (Latin: fructus, hence the word “usufruitier”).
These fruits may be natural and/or civil (such as rents). If the property disappears and the usufructuary cannot reconstitute it, he will no longer be able to exercise his right of enjoyment. Through his right of enjoyment, the usufructuary has an interest in maintaining the property. For this reason, he must insure himself as a (full) owner.
Book 3 – “Property” of the new Civil Code provides for an insurance obligation.
From September 1, 2021, the usufructuary is obliged to insure the freehold property for the usual risks, in any case against fire. The usufructuary is obliged to present proof of the insurance policy to the bare owner on first request.
The usufructuary may also have an interest in preserving his assets against a liability debt:
- extra-contractual, also for defects of the thing, since it must preserve the substance of the good;
- to the :
- bare owner. He has a contractual obligation to return the property at the end of the usufruct, given his obligation to preserve the substance of the property;
- tenant, on the basis of article 1721 C.Civ. 3.3.2 The interest of the bare owner.
The bare owner retains the right to dispose of the thing or property, provided he respects the rights of the usufructuary. He or she may therefore dispose of the value of the bare ownership, while respecting the rights of the usufructuary.
His main interest also lies in preserving the thing, since he will become its full owner when the right of usufruct expires. Indirectly, the bare owner may have an interest in protecting his assets against a liability debt. The bare owner is normally responsible for maintaining the structure of the building.
