Please note: Lovys offers two types of home contract, with two current insurance partners (Generali and Wakam). This article applies to policies taken out with Generali. You can refer to the special or general conditions attached to your contract for more information.
1. What are bare ownership and usufruct?
Bare ownership refers to ownership of a property without the right to use it or receive any income from it. Usufruct is the right to enjoy the property, use it and receive the benefits (such as rent). The usufructuary is the person who benefits from these rights, while the bare owner retains ownership but cannot fully dispose of it.
2. Who should take out the home insurance policy if ownership is split between bare ownership and usufruct?
The home insurance policy must be taken out in the name of the bare owner, although the policy covers both the bare owner and the usufructuary. It is therefore the bare owner who is obliged to take out the home insurance.
3. Who is responsible for paying the insurance premiums?
As the policyholder, only the bare owner is responsible for paying the insurance premiums. He/she personally undertakes to pay the premiums when due. The beneficial owner does not have to pay these contributions, even if he or she is also covered by the policy.
4. What happens in the event of a claim during the usufruct period?
In the event of a claim, compensation for the insured property will only be paid after agreement between the bare owner and the usufructuary. Both parties must agree on the distribution of the compensation before it is paid.
5. What happens if the bare owner and the usufructuary cannot agree on the claim settlement?
If no agreement is reached between the bare owner and the usufructuary on the distribution of the compensation, the insurer will deposit this compensation with the Caisse des Dépôts et Consignations. This will release the insurer from any obligation to settle the dispute between the bare owner and the usufructuary.
6. Does the extinction of the usufruct put an end to the insurance contract?
No. When the usufruct lapses, bare ownership and usufruct revert to the bare owner, who then becomes the full owner. The insurance policy continues to cover the home, but only for the benefit of the new full owner.
7. Is it possible to modify the insurance contract once the usufruct has expired?
Once the bare owner becomes the full owner, he or she can of course modify or adjust the insurance contract to suit his or her new needs. However, the existing policy will continue to protect them for as long as it remains in force.