Non-occupying landlord insurance (PNO)
Multi-risk home insurance taken out by a non-occupying landlord. It covers damage to the property during vacancy periods, civil liability incidents attributable to the owner, and situations where the tenant lacks insurance. It is mandatory in co-owned buildings since the ALUR law, and its cost is deductible under the real property income regime.
Key points
- Mandatory in co-owned buildings for all non-occupying landlords since the ALUR law.
- Covers damage occurring during periods of vacancy between tenancies.
- Steps in when the tenant has not taken out their own home insurance.
- Premium is deductible from rental income under the real-expense regime.
Frequently asked questions
Why take out PNO insurance if the tenant already has their own policy?
The tenant's policy does not protect the landlord against all events, particularly those occurring during vacancy or where landlord liability is involved. A PNO policy fills those gaps and ensures continuous cover regardless of occupancy status.
What is the difference between PNO insurance and rent-guarantee insurance (GLI)?
PNO covers physical damage and the landlord's civil liability, whereas GLI compensates the landlord for unpaid rent. They are complementary covers that many landlords take out together for comprehensive protection.
How does PNO insurance factor into the rental yield calculation?
The annual PNO premium is generally modest relative to rental income and is deductible under the real-expense regime, which limits its net impact on yield. The broker includes it in running costs to present an accurate after-tax net return.
In practice
An investor's studio flat sits empty between tenants. A water leak occurs during that vacancy; the PNO policy covers the repairs, since the previous tenant's policy is no longer in force.
Official sources
- Home insurance by the owner · Service-Public.gouv.fr
- Borrower insurance for a mortgage · Service-Public.gouv.fr
- Law of 28 February 2022 (Lemoine Act) · Vie-publique.fr