Landlord and tenant: two complementary insurance policies
The landlord takes out building insurance (PNO — non-occupant owner). The tenant takes out tenant liability and contents insurance. The two policies do not replace each other: they cover distinct risks and both are necessary.
The landlord’s insurance (PNO)
Non-occupant owner insurance protects the building: walls, roof, fixed installations (heating, electricity, plumbing). It also covers the landlord’s civil liability as lessor (e.g. a construction defect causing damage to the tenant).
The landlord takes out this policy before letting the property. It remains active throughout the lease, even if the property is temporarily unoccupied between tenants.
The tenant’s insurance
The tenant takes out insurance covering three aspects:
- Tenant liability: damage to the landlord’s property (fire, water damage, explosion)
- Neighbour recourse: damage caused to neighbours by an incident originating from the property
- Personal contents: the tenant’s furniture, clothing and electronic devices
The tenant must subscribe before moving in or at the latest on the lease start date. The obligation is generally included in the lease agreement.
Detailed coverage comparison
| Risk | Landlord insurance (PNO) | Tenant insurance |
|---|---|---|
| Building fire | Yes (structure) | Yes (tenant liability) |
| Water damage | Yes (embedded pipes) | Yes (damage caused to property) |
| Storm / natural disaster | Yes | Yes (contents) |
| Theft / vandalism | No (unless optional) | Yes (contents, if subscribed) |
| Tenant contents / furniture | No | Yes |
| Construction defect | Yes (landlord liability) | No |
| Neighbour recourse | Depends on policy | Yes (included) |
| Unoccupied property between tenants | Yes | Not applicable |
In the event of a claim, both insurance policies intervene simultaneously: the landlord’s PNO covers structural damage, while the tenant’s insurance covers their share of liability. The absence of either policy creates a dangerous coverage gap.
Practical examples
Kitchen fire: the tenant’s insurance compensates the landlord for damage to the property (tenant liability). The landlord’s PNO covers structural damage not covered by the tenant’s policy.
Water damage to the neighbour below: the “neighbour recourse” component of the tenant’s insurance compensates the neighbour. The PNO only intervenes if the problem originates from a building defect.
Indicative insurance costs
| Type | Apartment | House |
|---|---|---|
| PNO (landlord) | 150 — 300 EUR/year | 250 — 500 EUR/year |
| Tenant insurance | 80 — 150 EUR/year | 120 — 250 EUR/year |
The PNO premium is deductible from rental income if the property is let to a natural person for private purposes — see which expenses are deductible.
How to choose
- Compare at least 3 quotes (online or through a broker)
- Check the excess: too high an amount may negate the benefit of the policy
- For the tenant, favour coverage including tenant liability + neighbour recourse + contents
- For the landlord, include the unoccupied property option if periods of vacancy are likely
Regional specificities
Brussels-Capital Region
The ordinance of 27 July 2017 allows the lease to make the tenant’s insurance mandatory. The landlord may require an annual insurance certificate. The standard Brussels lease includes this clause by default.
Wallonia
The decree of 15 March 2018 provides the same contractual possibility. Regional renovation grants do not cover insurance premiums.
Flanders
The Vlaams Woninghuurdecreet of 9 November 2018 authorises the insurance clause in the lease. In Flanders, landlords almost systematically require a certificate before the tenant moves in.
Civil Code, art. 1733 and 1735 — tenant liability in case of fire. Law of 4 April 2014 on insurance (FSMA supervision).