How do you insure a furnished rental?
Are you one of the 25,000 people who move to Luxembourg every year? To ease your way into this new chapter in your personal and professional life, you may have opted for a furnished rental property. If so, here's how to insure it!
A furnished rental is a very practical option when you arrive in Luxembourg for an internship, a temporary assignment or a permanent contract with a trial period. When it comes to home insurance, as you can imagine, each country goes by its own rules. But what about furnished rentals? We should start off by pointing out that, in Luxembourg, insuring your home, whether you are a tenant or owner, is not a legal obligation. However, accidents are a fact of life, and the bill can quickly add up , so it does make sense to protect yourself.
How should you insure your furnished rental as a tenant?
“One summer day, I opened the doors and windows of my apartment to create a draught and cool the room a little. Not one of my best ideas... as a gust of wind blew the glass door open and it shattered. Fortunately, I was insured... .” Stefano, risk manager.
As a tenant of a furnished rental - whether a room, studio, apartment or house - you are presumed to be responsible in the event of fire (unless you can prove otherwise: lack of maintenance by the owner, lightning setting fire to the accommodation, fire starting outside the accommodation occupied by the tenant, etc.). The same applies to electrical damage, water damage or glass breakage.
To be insured against damage in your home:
- You can opt for rental liability cover.
- In addition, you can add cover for your belongings at the same address.
- Finally, you can also choose to insure your mobile devices (computer, telephone, tablet, etc.) by taking out multimedia cover that protects you not only in the event of theft outside the home but also if the equipment is damaged anywhere you are in the world.
Furthermore, in practice, it is likely that the landlord of your home will ask you for proof of home insurance for the whole property.
How much does it cost to insure a furnished rental?
It all depends on whether you want to opt for only rental liability cover or if you want to take out a more comprehensive cover.
For a studio apartment of about 30m2, AXA's "Privilege" package will cost you between €15 and €20 per month, covering €15,000 of contents and including both the "Rental Liability” (covers your responsibility to your landlord for the rented accommodation) and the "Family Liability” (covers your liability to third parties, for example in the event of accidental damage to a third party caused by your pet, a member of your family, or yourself in the course of your private life).
For a 70m2 flat with contents valued at €35,000, you can expect to pay between €25 and €30 per month for home insurance + rental liability + family liability (private life), again with the Privilege package.
Do not hesitate to contact one of our advisors to discuss the best estimate for your needs.
Which insurance for the owner of a furnished rental?
“One evening when I invited a few friends over for a drink, I dropped a bottle onto the induction hob and it cracked. My landlord's insurance company paid the replacement costs. ” Elena, data analyst.
In furnished rentals, it is usually the landlord who insures his/her own furniture. In Luxembourg, the fitted kitchen is considered to be part of the contents of the flat, just like the furniture. The home insurance of the non-occupying owner covers the risks of theft, damage, storm, water damage, fire and flooding.
How do you insure a shared furnished rental?
Here again, there is no legal framework for a flat-share.
At AXA, we recommend that people living in a shared apartment take out one single insurance policy, as if they were one household. Only one of the co-tenants is then known to the insurer. This co-tenant is known as the "policyholder" who acts on behalf of himself/herself and his/her flatmates. The other co-tenants are considered as insured, as long as they are mentioned on the lease. Be careful, because in the event of an incident, only the people listed on the rental agreement are covered.
The tenants who have signed the rental agreement are also the only ones who are liable to the landlord.
It is therefore important to regularly update the rental agreement to include the current occupants.
Am I insured if I rent a furnished holiday rental such as Airbnb?
At AXA, accidental material damage caused by an insured person during a temporary stay is covered anywhere in the world (as part of the extension of the cover taken out for the insured person's home). This also applies to damage caused in a holiday home or hotel, excluding theft.
