Oh no… my lease !



In France, 65% of those asked said that property would be their investment priority in 2016, up from 57% in 2015 according to a survey published in Les Echos on 26 September. While property still seems to be a sure bet for investors, the role of the insurer and the range of products on offer in the sector are constantly expanding to accommodate new risks with rental properties.


The lack of tenants’ insurance : an ever growing risk

Successive French governments have implemented several systems to make it easier to find housing, especially for the least well-off tenants. “Social” tax credits have made it easier for those on low incomes to rent housing from private landlords.

However, the current situation and falling household spending power are making the jobs of landlords and property managers more complicated by exposing them to new rental risks. It is increasingly common for tenants to be uninsured, or to have their policies terminated for failure to pay premiums, in addition to the usual risks of unpaid rent and property damage.

Learning to use the various insurance policies in rental claims

Remember that French law requires tenants to insure their accommodation, and failure to do so provides legal cause for terminating the lease.

When a claim is made on a rented property, several insurance policies may be triggered at the same time:

  • The tenant’s buildings and contents insurance
  • Absentee owner insurance
  • Residents’ association policy
  • The property manager’s or maintenance provider’s Professional Public Liability
  • Any rental guarantees taken out by the landlord

In light of these myriad policies and therefore stakeholders, GM Consultant takes action on various levels to settle claims arising from problems with rental properties:

Claim resolution : GM Consultant harnesses complementary skills

Our financial loss adjusters work on claims where the public liability of the property manager or residents’ association, professions governed by the Hoguet Law, is liable to be invoked. Our construction loss adjusters are specialists in finding the cause of the problem and assessing the damages incurred by repairs to the building.

Lastly SES, a group subsidiary specialising in claim management for third parties, provides its assistance for all damage surveys covered by property or corporate buildings & contents insurance via its Asset Damage department, with claims being managed remotely or on-site. It also provides insurers and landlords (private landlords or property managers) with a comprehensive Rent Guarantee Management (RGM) solution covering everything from reporting the incident, regular compensation for claims, and the evaluation of wear and tear caused by the tenant. Its RGM department is also involved throughout all amicable or legal proceedings launched against the tenant to evict them from the property and recover unpaid rent.

Our collaborative tools specially designed to manage exactly this kind of issue, our expertise at different stages of the process, and the interaction between our various teams means that our clients are guaranteed a fast, comprehensive, and appropriate response to their needs and those of their policyholders, in a sector at the heart of French people’s concerns.


Elisabeth AZOULAY
“Crisis management” Project Manager / Manager of Real estate department  – SES

Finance and Services loss adjsuter – GM Consultant Group