Imposed by law on tenants and highly recommended for owners of rental properties, taking out comprehensive home insurance involves signing a contract with an insurer. However, like any other service contract, this one can be terminated on your initiative. But in what cases is it possible to terminate your home insurance? How to proceed ? Explanations and advice from our experts.
Cancel your home insurance: the basic legal provisions
In order to fully understand the mechanisms for canceling a home insurance contract, it is important to understand the basic rules in this area. These are established by the Insurance Code and governed by various legal provisions relating to consumer rights.
Overall, it should be remembered that a home insurance contract (or multi-risk home insurance) is concluded for an initial period ofone year with tacit renewal. This means that at the end of the first year, the contract is automatically renewed unless you (or your insurer) notifies its intention to terminate it.
Note that the law requires your insurer to remind you of the deadline by which you can terminate the contract. This must be notified on the notice of annual expiry or in an attached document detailing the procedure to be followed and the deadlines to be respected.
Termination of home insurance at the end of the first year
In accordance with the provisions of the Hamon Law, it is possible to terminate your home insurance contract freely at the end of the first year of the contract. No justification is necessary.
All you have to do is send, two months before the anniversary datea registered letter with acknowledgment of receipt notifying your insurer of your wish to cancel.
In what cases can you cancel your home insurance during the first year?
The law also provides for certain specific cases in which an insured may request the termination of his contract before the date of the first expiry. These cases are mentioned in article L113-16 of the Insurance Code and concern in particular:
- A move : in the event of departure from your accommodation, you must inform your insurer and request the termination of the contract. This will take effect within 1 month of receipt of the letter;
- the change in your marital status(marriage or divorce, in particular). In this case, it is necessary to declare the event to your insurer within 15 days by registered mail with AR. The possibility is then offered to the insurer to make you a new proposal taking into account your situation. If you refuse, termination is automatic;
- A change of occupationa retirement or a cessation of activity.
Provided that this is among the clauses, a termination of the home insurance contract is also possible in the event of a premium increase.
Read also: How to save money on your home insurance?
Cancel your home insurance after the first year
If you choose to renew your home insurance contract at the end of the first year, nothing obliges you to remain committed for the rest of the following year, or longer. The Hamon law of 2014 authorizes you to cancel your multi-risk home insurance at any time after the anniversary date of the contract. Again, no justification is required.
Termination takes effect from the month following receipt by the insurer of the request addressed to it.
What is the procedure for canceling your home insurance?
To avoid any conflict resulting from your insurance contract, take care to respect the deadlines and procedures imposed by law. In either of the cases mentioned above, the main approach remains the writing and sending a cancellation letter to your insurer, with acknowledgment of receipt.
This must contain:
- Your personal informations: surname, first name, address, contract number, insured number;
- The information about your insurer: name, address, department concerned;
- L’mail subject : “Termination of home insurance contract no.…”;
- the reason for terminationideally with a reference to the relevant article of the insurance code;
- The Date desired effect for termination;
- Your signatureat the bottom of the letter.
Note, however, that if you are a tenant, the law recommends that this process be carried out by your new insurer. As home insurance is compulsory for the tenant, this provision ensures continuity of coverage.
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