Canceling your insurance contract can seem complex. Deadline, reason, procedure, deadline… All this is governed by the Insurance Code. Among the points on which you must remain vigilant in order to terminate your contract with complete peace of mind: the termination period.
A move, a departure abroad or, quite simply, a contract that no longer suits you… The reasons for cancel your home insurance are numerous, but what are the steps to follow to end your contract? Are there deadlines and is the process free? Can the insurer himself terminate the insurance contract?
The Hamon law, known as the consumer law, was put in place to promote competition and thus better protect the consumer. It allows policyholders to terminate their home insurance contract at any time, without reason or penalties, after one year of commitment, and simplifies the procedures. It concerns day-to-day insurance contracts, including home insurance.
Termination of the multi-risk home contract after the first year
Thanks to the Hamon law, you can cancel your home insurance policy at any time, after the first year of contract, without having to justify yourself, and without taking into account the annual expiry date.
You must send your cancellation request by letter or any other durable medium (electronic registered mail or simple email). Termination of the contract will take effect one month after receipt of your request by the insurer. You will be reimbursed for the part of the premium corresponding to the remaining period of the contract.
Termination at contract expiry
Home insurance is a contract between the insured and the insurer, said to be tacitly renewable, that is to say that it is automatically renewed in principle. You don’t have to wait for your next move or change in personal circumstances to change home insurance. It is indeed possible to cancel your home insurance policy during the 1re maturity (after one year) on the anniversary date of the subscription of the contract, without any justification.
Your cancellation can be sent by letter or any other durable medium (electronic registered mail or simple e-mail) two months before this expiry date. To help you not miss this deadline, the law obliges the insurer to remind you that you can terminate the contract before the deadline.
Thus, the insurer must notify you at least fifteen calendar days before the deadline by which you can request termination. If no reminder has been sent to you, you can terminate your contract at any time, once the expiry date has passed, and without penalty, by sending your request to your insurer by letter, email, etc.
To terminate an insurance contract, subscribed for more than a year, the termination takes effect the day after the date appearing on the postmark.
Termination before expiry of contract
If a change of situation occurs in your life and this constitutes an aggravation of the risk covered by the insurance, if the number of people in the household increases or if you carry out a professional activity in your home, for example, you must report this to your insurer. You must make this report within fifteen calendar days and by registered letter with acknowledgment of receipt.
The insurer may agree to continue to insure you without modifying the contract, but he may also decide to modify the conditions under which he will insure you. In this case, he must make you a proposal for modification. If you do not accept it, this leads to the termination of the contract.
Modification of the conditions of the home insurance contract
The insurer can decide to modify the conditions of the contract, apart from any change of situation. This is often the case during the annual deadline: increase in the price, introduction of new deductibles or increase in amounts, exclusion of guarantees, etc.
Attention ! Your insurer must inform you of its decision to modify the conditions of insurance. If you do not accept the changes, this entails termination of the home insurance contractunless the contract provided from the outset the possibility for the insurer to modify the conditions.
Following the death of the insured
In the event of the death of an insured person, the home insurance continues automatically, but the heirs have the choice between the continuity of the contract or its termination.
- If the heirs choose to let the contract continue, they must continue to pay the contributions.
- If they decide to terminate the contract, they must send the insurer their request for termination by letter or any other durable medium (electronic registered mail or simple email).
Termination of the contract will take effect one month after receipt of the letter by the insurer. Only premiums relating to the period following the effective date of termination can be refunded.
Leaving your accommodation
If you move, you must inform the insurer. Termination will take effect one month after notification of termination.
Insurance rate increase
Consult the General Conditions of your home insurance contract. Depending on what is written there, you may be able to terminate your contract.
Can your insurer cancel your home insurance contract?
In which cases can your insurer terminate your home contract?
1. When the contract expires
The insurer can, like you, terminate the contract on its annual expiry date. He is required to justify the reasons which lead him to terminate your home insurance contract. He must give two months’ notice and inform you by registered letter with acknowledgment of receipt, specifying the reason for termination (article L113-12-1 of the Insurance Code).
2. If you do not pay your dues
If you no longer pay your insurance contributions, your insurer is not obliged to continue to insure you.
Upon expiry of a period of ten days from the due date, the insurer is entitled, if the premium is not paid, to send the defaulting subscriber a registered letter to inform him of the applicable sanctions. in the event of non-regularization within forty days of the dispatch of the said letter.
The registered letter must be sent to the subscriber’s last known domicile.
In the event of payment by the subscriber before the end of the deadline, the contract normally continues its effects after this deadline, the contractual situation not being modified. On the other hand, in the event of non-payment, sanctions are of course applicable which lead either to the reduction or to the termination of the contract. Of course, your premium remains due even if the contract has been terminated.
3. If you made an unintentional misrepresentation
In the event of an omission or inaccuracy in the declaration of risk, the insurer can terminate your contract. He must send you, by registered letter, a notification of termination. The termination of your contract will be effective ten days after receipt of this letter. Of course, the insurer is obliged to refund your insurance contributions for the uninsured period.
4. In the event of an aggravation of the risk
If you notice a change in your situation, or in your insured property (moving for example), you must inform the insurer within fifteen days of this change, by registered letter. The insurer has ten days to inform you if he refuses to cover you in view of this new risk. If this is the case, the termination will take effect ten days after this notification. Otherwise, the insurer has ten days to offer you an increase in your premium to cover this new risk. If you refuse it, your contract will be terminated 30 days after this refusal.
Did you know ?
If the insurer continues to collect your premiums after being informed of a possible increase in risk, the contract will be deemed to be the same as before the aggravation of this risk, and the insurer will no longer be able to terminate your contract for this reason.
5. After a home disaster
To be able to terminate your home insurance contract after a disaster must be provided for in your initial contract. This wish to terminate your insurance contract must be notified to you by registered letter only and the termination takes place 30 days after this notification. The insurer is obliged to reimburse you for the part of your premium during which you will no longer be covered following its cancellation.
Canceling your home insurance with the Hamon law is simple and quick if you can justify a one-year contract but also if your personal situation has changed. In all cases, termination will be by registered letter with acknowledgment of receipt.
Non-contractual advertising document updated on 05/12/2022
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