Insurance: should you redeem the excess of your home contract?

The deductible is an amount that remains the responsibility of the insured in the event of the occurrence of a covered claim. It is deducted from the sums paid to it. It may be interesting to opt for a deductible buy-back depending on the cost of this buy-back and the amount of the various deductibles provided for in your insurance contract.

The vast majority of home insurance includes various contractual deductibles applicable in the absence of a responsible third party: for damage involving your civil liability and damage to movable and immovable property (water damage, fire, theft, etc.). Not to mention the legal deductibles that can never be redeemed, 380 euros for damage to property or 1,520 euros for property damage linked to a movement of land, systematic in the event of a natural disaster.

A full refund

The higher these deductibles, the lower the contribution, since this allows the insurer to limit its intervention and not to compensate claims of small amounts. Conversely, the lower they are, the more the contribution increases.

This logic culminates in the franchise takeover. You will be fully reimbursed, but your insurance premium will be more expensive. Subscribing to the franchise buyout is above all a personal choice. It is also a bet on the future, because no one knows in advance whether or not he will be faced with claims and whether his choice of having no contractual deductible to bear will prove to be wise or not.

Some insurers offer this option on a permanent basis, others only offer it on an ad hoc basis and to certain categories of policyholders only (owner occupiers, for example).


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