In The Event Of The Insurer’s Bankruptcy, What Becomes Of The Property Damage Insurance?

Individuals who have purchased damage insurance are increasingly faced with the bankruptcy of an insurance company. How to obtain compensation in this situation?

Several insurance companies, notably foreign ones, have gone bankrupt in recent months. Unlike insurers headquartered in France, these are not controlled by the Prudential Control and Resolution Authority (ACPR) which can hold unpleasant surprises for individuals. Explanations.

How Do You Know If Your Structure Damage Insurer Has Gone Bankrupt?

Individuals who buy new housing or have large-scale works carried out are in principle protected by damage insurance. Thus, in the event of damage compromising the solidity of the building or making it unsuitable for its destination, the insurer intervenes to finance the repair work. This warranty is valid for 10 years from the date of receipt of the work.

But to make the damage insurance work work, the insurer must still be in practice at the time of the occurrence of the claim. In recent years, bankruptcies have followed one another and insurance companies are no longer able to cover the risks. To find out if you are affected, consult the certificate given by the craftsman or the promoter. The insurance policy number is there and provides this information. If you learn that your insurer has gone bankrupt, the best solution is to contact a broker who will detail the procedure for you and offer you new book damage insurance. However, this new guarantee can be expensive and will not necessarily cover claims that were declared before taking out.

What Is The Compulsory Insurance Guarantee Fund (FGAO)?

The FGAO provides support for the damages of the failed insurance company should pay for the contracts signed or renewed from 1 st July 2018. This device works only for damage found in France and impacting strength construction or making it uninhabitable. It can be large cracks in the walls, a collapsed roof or water infiltration.

To make a claim for compensation, you must send the FGAO a declaration accompanied by the description of the damage and the contact details of the company that carried out the work or the promoter. The compensation paid by the fund varies according to the nature and extent of the damage suffered.

To avoid such a situation, it is advisable to choose your insurer carefully by consulting its financial situation, its seniority on the market, the quality of customer service and the services offered. The competition between offers makes it possible to find property damage insurance combining extended guarantees and attractive prices. For this, do not hesitate to use a free online comparison without obligation. After filling out a form in less than 2 minutes, you will be able to access several quotes tailored to your profile. By hiring a broker, you are also guaranteed the best deals.