France sets distinct rules for home insurance and rent increases

In France, the legal obligations and costs of home insurance differ for tenants, owner‑occupiers and non‑occupant landlords. Tenants must hold a mandatory policy covering fire, explosion and water damage, typically costing €133‑€199 per year for a 60 m² apartment. Owner‑occupiers are not required by law but usually insure the building and fixtures, with premiums ranging from €357‑€663 annually for a 200 m² house. Non‑occupant landlords must carry a compulsory “owner‑non‑occupant” policy, which has seen the strongest price rise in 2024, up 10.2 %.

Separate French regulations also govern the revision of residential rents. Landlords may raise rent only if the lease includes a revision clause and must apply the annual Index of Reference of Rents (IRL) published by INSEE. The increase is calculated by adjusting the previous rent with the ratio of the current to the prior IRL. Since August 2022 (and July 2024 in overseas departments), the law bans rent increases for properties classified F or G on the energy performance diagnostic.

Both sets of rules aim to balance market stability with consumer protection, affecting millions of French households.