Title II: Rules relating to non-life insurance

Property insurance is an indemnity contract; the indemnity payable by the insurer to the insured may not exceed the value of the insured item at the time of the loss. It may be stipulated that the insured must remain his or her own insurer for a specific sum or proportion, or that he or she must pay a deduction fixed in advance from the claim settlement.

The insurer is liable for loss or damage caused by persons for whom the insured is civilly liable under article 1242 of the Civil Code, regardless of the nature and seriousness of the fault of those persons.

Where an insurance contract has been concluded for a sum in excess of the value of the insured items, if there has been fraud or deceit on the part of one of the parties, the other party may request that the contract be declared null and void and may also claim damages. If there has been no fraud or deceit, the contract is valid, but only up to the actual…

Any person who is insured with several insurers under several policies, for the same interest, against the same risk, must immediately inform each insurer of the other insurers. At the time of such notification, the insured must indicate the name of the insurer with whom another insurance policy has been taken out and the sum insured. Where several insurances against the same risk are taken out fraudulently or deceitfully, the…

If the estimates show that the value of the insured item on the date of the loss exceeds the sum insured, the insured shall be deemed to remain his own insurer for the excess, and shall consequently bear a proportionate share of the loss, unless otherwise agreed.

Any person with an interest in the preservation of a thing may insure it. Any direct or indirect interest in the non-occurrence of a risk may be insured.

The Insurer shall not be liable for any waste, diminution or loss suffered by the insured item as a result of its own defect, unless otherwise agreed.

Unless otherwise agreed, the insurer is not liable for loss or damage caused by foreign war, civil war, riots or civil commotion. Where these risks are not covered by the contract, the insured must prove that the loss resulted from an event other than foreign war; it is up to the insurer to prove that the loss resulted from civil war, riots or civil commotion.

In the event of total loss of the insured item resulting from an event not provided for in the policy, the insurance terminates ipso jure and the insurer must return to the insured the portion of the premium paid in advance and relating to the time for which the risk is no longer incurred.

In the event of the death of the insured or the alienation of the insured object, the insurance shall continue ipso jure in favour of the heir or purchaser, on condition that the latter fulfils all the obligations which the insured had towards the insurer under the contract. However, either the insurer or the heir or purchaser may cancel the contract. The Insurer may terminate the contract within three months…