Non-occupant landlord insurance (PNO): a legal duty in condominiums (Alur Act)

The question comes up with every new property: am I required to insure a dwelling I rent out and do not occupy myself? In a condominium, the answer has been yes since the Alur Act. This guide sets out non-occupant landlord (PNO) insurance, its mandatory nature, what it covers and how it dovetails with the tenant's insurance.

What is PNO insurance?

PNO, or non-occupant landlord insurance, is the policy taken out by the landlord for the dwelling they let and do not live in themselves. It protects the owner as such, on top of the building's insurance and the tenant's, each of which leaves gaps.

In particular it covers the owner's public liability, damage to the dwelling during vacancy periods (between two tenancies) and claims the tenant or their insurer would not answer for. It is the landlord's safety net.

The insurance duty in condominiums (Alur Act)

Since the Alur Act (Act no. 2014-366 of 24 March 2014), every co-owner has a duty to be insured. Article 9-1 of the Act of 10 July 1965 requires each co-owner — whether they occupy their lot, let it or leave it empty — to take out at least insurance covering their public liability.

In practice, for a dwelling let within a condominium, this duty takes the form of a PNO policy. The legal minimum is public-liability cover; in practice, the PNO policies on the market go well beyond this and also cover damage to the property.

This duty applies to both unfurnished and furnished dwellings, whether occupied by a tenant or temporarily empty.

What a PNO policy covers

Beyond the mandatory public-liability cover, a full PNO policy protects the landlord in situations that neither the tenant's insurance nor the building's insurance handles:

• The owner's public liability: damage caused to a third party, a neighbour or the tenant arising from the dwelling (construction defect, lack of maintenance).
• Rental vacancy: water damage, fire or deterioration occurring while the dwelling is empty, with no insured tenant to answer for the claim.
• Claims by tenants and neighbours: where the loss originates in the dwelling but engages the owner's liability.
• The tenant's lack of insurance or insufficient cover: the PNO steps in if the tenant is not (or poorly) insured.
• Damage to the fabric of the building itself (walls, installations) not covered by the building's insurance.

PNO and the tenant's insurance: who covers what

These two policies do not overlap; they complement each other. The tenant insures the rental risks (fire, water damage, explosion) and their personal belongings through comprehensive home insurance. The landlord, through the PNO, covers what remains their responsibility: their liability as a landlord, the property during vacancy, and gaps in the tenant's cover.

The building's insurance covers the common areas and, depending on the policy, part of the private areas. The PNO fills the space between these three circles.

Do you need a PNO outside a condominium?

For a detached house (outside a condominium), a PNO is not legally mandatory. It remains strongly advisable, however: without it, a loss occurring during a rental vacancy or a gap in the tenant's insurance would fall entirely on you. The cost of a PNO (often a few tens of euros a year) bears no comparison with the risk it covers.

In all cases, request your tenant's insurance certificate every year: it is a legal duty on their part, and the essential complement to your PNO.