Are you the owner of a rental property, heir to a vacant home, or an investor in rental real estate? Non-occupant landlord insurance (PNO) is an essential topic for protecting your property assets. Is it mandatory? What coverage does it actually provide? How much does it cost in 2026? This comprehensive guide is aimed at landlords investing in rental property and any owner of a property that is not their primary residence. Discover everything you need to know about PNO insurance to secure your property and make informed decisions. Contact your local Capifrance advisor for any purchase or sale project, starting with an online property valuation.
What is pno insurance: definition and how it works
Non-occupant landlord insurance (PNO) is a policy designed for owners who do not live in their property. Have you bought an apartment to rent it out or do you own an unoccupied second home? It applies to both furnished and unfurnished rental properties, as well as vacant properties or those loaned free of charge to a relative. This insurance covers risks related to the rental property throughout the entire ownership period, including during vacancy periods between tenants. It is particularly useful when the tenant does not have home insurance or when their policy is insufficient to cover certain damages.
How landlord insurance works
Non-occupant landlord insurance works as continuous protection for your property. From the moment you subscribe, you choose the level of coverage suited to your situation and the type of property concerned. The policy covers damage affecting the structure of the property (walls, floors, roof, pipes) as well as your liability as the owner. In practical terms, if water damage occurs during a vacancy period or if your tenant’s insurance refuses to compensate certain damages, your PNO insurance steps in. It also covers damage caused to neighbors or third parties due to your property (falling tiles, water leaks affecting a downstairs neighbor, etc.).
What is the difference with standard tenant home insurance
The fundamental difference lies in the scope of protection and the beneficiary. Tenant home insurance protects the occupant’s personal belongings and their liability related to the use of the property. It covers the interior, furniture, and personal effects. PNO insurance, on the other hand, protects the owner and the structure of the property. It does not cover the tenant’s belongings but focuses on the building itself and external elements (garden shed, roof, fittings). These two types of insurance are complementary and not interchangeable. When your rental property is occupied, both policies coexist to ensure full protection of the property and its occupants.
Is non-occupant landlord insurance mandatory in co-ownership?
The answer includes an important nuance. PNO insurance is mandatory only for liability coverage when the property is part of a co-ownership, in accordance with the Alur law. For properties outside co-ownership (individual houses, entire buildings), it is strongly recommended but not legally required. This distinction is essential for any landlord wishing to secure their real estate assets.
The obligation imposed by the alur law on co-owners
Since the adoption of the Loi Alur in 2014, article 9-1 of the law of July 10, 1965 requires each co-owner to take out liability insurance. This legal obligation applies to all co-owners, whether they occupy their property or not. The property manager plays a verification role in enforcing this measure. They may request proof of insurance from each co-owner and ensure that liability coverage is active. This guarantee protects against incidents such as water damage affecting neighbors or damage to common areas. The absence of insurance exposes the co-owner to penalties and the obligation to personally compensate victims in the event of a claim.
Specific cases: sci, joint ownership and bare ownership
Specific legal structures require particular attention regarding PNO insurance. For a company (SCI) holding a property in co-ownership, the obligation is the same as for an individual owner: the company must subscribe to liability insurance in its name. Outside co-ownership, insurance remains strongly recommended to protect the company’s assets. In the case of joint ownership, the situation is more complex. Only one co-owner can subscribe on behalf of the group, but it is strongly recommended that all co-owners be listed in the contract to avoid refusal of compensation. The premium is then shared among them. As for the bare owner, they remain responsible for the structural elements of the property and must therefore take out PNO insurance, even if the usufructuary occupies or rents the property.
Insuring a house, building, garage or commercial premises
PNO insurance applies to all types of properties not occupied by their owner. For a co-owned apartment, legal obligation applies. For a rented house, it is not mandatory but remains essential to protect against risks and claims. For an entire building, PNO insurance becomes a multi-risk building policy with broader coverage. For a garage or commercial premises in co-ownership, liability insurance is also mandatory. These properties involve specific risks that justify tailored coverage.
What does pno insurance cover: basic guarantees and options
Basic guarantees included in a pno contract
PNO insurance includes essential guarantees to protect your property and liability. Water damage is one of the most common claims, covering leaks and pipe bursts. Fire and explosion are also covered, as well as lightning damage. Major weather events such as storms, hail, and natural disasters are included under regulatory conditions. Glass breakage protects windows and glass surfaces. Acts of vandalism are generally included, particularly useful during vacancy periods. These guarantees provide solid coverage for common risks, but it is important to check compensation limits and deductibles.
Additional options and guarantees to consider
Beyond basic coverage, several options can strengthen protection. Legal protection helps in case of disputes related to the lease or a claim. Loss of rent is particularly useful when the property becomes uninhabitable following a covered incident. Specific coverage can be added for outdoor features or recent construction work. Options such as replacement value, extended vacancy coverage, or emergency assistance are commonly offered and can be tailored to your needs.
Owner liability: an essential coverage
Landlord liability is the cornerstone of PNO insurance. It covers damage caused to third parties or tenants due to your property, even in your absence. This includes situations such as falling roof tiles, balcony collapse, or structural defects. Unlike tenant insurance, which covers personal belongings, owner liability covers structural defects and maintenance issues. In co-ownership, this coverage is mandatory under the Loi Alur. It protects your personal assets in case of liability claims.
Why take out insurance to protect your rental property
Taking out PNO insurance for a rental property is a strategic decision that goes beyond regulatory compliance. It ensures financial security against claims such as water damage, fire, or third-party damage. It also covers your liability as a landlord. Having appropriate insurance provides peace of mind in managing your real estate assets.
Protecting your property during vacancy periods
Vacancy periods expose your property to specific risks. Without occupants, issues like water leaks or fires may go unnoticed. Tenant insurance is no longer active between leases, leaving your property unprotected without PNO insurance. This is when PNO insurance is most valuable, providing continuous coverage whether the property is occupied or not.
When should you take out pno insurance for a furnished rental
The ideal time to subscribe is as soon as you acquire the property, even before signing the first lease. This ensures immediate and continuous coverage. PNO insurance applies equally to furnished and unfurnished rentals. It is essential to keep your policy active at all times, including between tenants.
How much does pno insurance cost: prices and criteria in 2026
Factors influencing the cost of your pno insurance
The cost of PNO insurance varies depending on several factors: type of property, size, location, level of coverage, type of rental, and claims history. In France, the annual cost generally ranges from €150 to €360 for an apartment, up to €450 for a house, and over €500 for a building.
How to reduce the cost of your policy
To optimize costs, compare offers from different insurers, adjust deductibles, and select only necessary coverage. Bundling policies with the same insurer may offer discounts. Regularly reviewing your policy ensures it remains competitive and adapted to your needs.
Frequently asked questions about non-occupant landlord insurance
How to cancel non-occupant landlord insurance
Since the Hamon law of 2014, you can cancel your PNO insurance at any time after the first year without fees. Simply send a cancellation request with one month’s notice.
Where to declare pno insurance in accounting
PNO insurance premiums are fully deductible from rental income under the real tax regime. They must be declared in the appropriate section of your tax return, reducing your taxable income.
Is a pno certificate mandatory for landlords
Yes, in co-ownership, you must provide proof of insurance annually to the property manager. Your tenant may also request it.
Does pno insurance cover unpaid rent
No, unpaid rent is covered by a separate policy called rent guarantee insurance (GLI), although it can sometimes be added as an option.
Should a property dealer take out pno insurance
Yes, a property dealer must insure each property held before resale. This protects against risks and liability during the holding period.
Author
Frédéric Rémy – Director of Commercial Performance
A real estate professional for several years within the Capifrance network, I would like to share with you some essential advice to help you succeed in your real estate project with the support of our advisors.
