PNO = coverage for unoccupied property, GLI = rent protection, professional multi-risk = for more advanced landlords. Choosing according to your number of properties and your usage is key.
Investing in rental property is an excellent strategy. However, this investment comes with responsibilities: property maintenance, tenant management, rent collection, and the risk of damage. To effectively cover these risks, three types of insurance stand out: PNO (Non-Occupant Owner) insurance, GLI (Unpaid Rent Guarantee), and professional multi-risk insurance. This article details their characteristics, legal obligations, guarantees, and how to choose the one that suits your profile.
What is PNO insurance, GLI insurance, and professional multi-risk insurance?
PNO Insurance (Owner-Occupier Insurance)
PNO insurance is for landlords who do not live in the property. It covers your civil liability as an owner, damage to the premises, and lost rent according to the contracts.
It is only mandatory when the property is located in a co-ownership (article 9-1 of the law of July 10, 1965).
Guaranteed Rent Payment (GRP)
GLI (Guarantor Liability Insurance) is an optional but very useful insurance to secure your rental income. It covers unpaid rent by the tenant, procedural costs, and often damage.
Professional multi-risk insurance
When your rental activity takes on a professional dimension (entire building, multiple properties, managing numerous rentals), taking out professional multi-risk insurance covers your property, liabilities, business interruption, etc. (§ adapted for landlords).
Legal obligations and responsibilities of the landlord
- If the property is located in a co-ownership building, the landlord must absolutely take out at least a civil liability insurance policy.
- The tenant must have "rental risks" insurance (fire, water damage, etc.) and provide proof of coverage each year.
- In the absence of tenant insurance, you, as the landlord, can request the application of a termination clause or take out a contract yourself.
Guarantees to prioritize based on your profile
For a "standard" landlord (1-2 properties)
- Landlord's liability insurance
- Fire, explosion, water damage
- Storm, theft / vandalism
- Lost rent or rental vacancy (option)
For a "professional" landlord or a "multi-unit" building.
- All property risks (including structural damage)
- Landlord legal protection
- Guaranteed rent payments + coverage for damages
- Business interruption coverage
For a seasonal landlord or furnished rental
- Option for included furniture and equipment
- Seasonal liability insurance
- Rental vacation insurance and incidental damage coverage
Criteria for choosing the right contract for you
- Clearly identify the type of property (unfurnished, furnished, seasonal) and its intended use (tenant's primary residence, secondary residence).
- Check the ceilings and deductibles, the replacement value of movable property.
- Examine possible tax deductions (contributions deductible from property income) The Insurance Comparison Tool
- Check coverage in case of vacancy or unoccupied property.
- Check if the contract accepts "professional" accommodations.
Why choose KT Assur&Bank for your landlord insurance?
At KT Assur&Bank, we offer:
- Personalized support to define the right contract based on the number of properties, the intended use, and whether it's for seasonal or long-term rental.
- Modular guarantees: PNO + options for unpaid rent, professional coverage, etc.
- Price transparency and tax optimization for your rental income.
- Advice and assistance in managing claims or disputes.
Conclusion
Landlord, don't settle for the bare minimum: adapting your insurance to your needs, the number of properties, and the possibility of unpaid rent or vacancy is essential to secure your investment. With KT Assur&Bank, you can choose the coverage best suited to your situation, while benefiting from expert advice.