Insurance of household appliances

When buying home appliances, it is often proposed an extended warranty parts and labor. But what is it?

Legal guarantees

For the purchase of a product, the law provides two types of guarantees:

·         The legal conformity warranty, provided for in articles L-211-1 and following of the Code of consumption, is to ensure that the property purchased corresponds to the use that can be expected or corresponds to the description that you have been given. It can be implemented within 2 years after the delivery of the good.

·         The warranty against latent defects, provided for in article 1641 and seq. of the Civil Code, assure you that the item purchased is not a defect that makes it impossible or significantly reduces the use for which it is intended. It can be implemented within a period of 2 years from the discovery of the defect.

The commercial guarantee

When you buy a household or electronic device, vendor offers, often free of charge, a commercial guarantee of one or two years and you subscribe to an extension of this commercial guarantee, pay this time, one or more additional years. The cost of this warranty extension is often proportional to the price of the device and can represent a significant percentage of the purchase price.

The commercial warranty does not replace the guarantees provided by the law. It is an additional guarantee, optional and which may be easier to implement because it does not require to provide specific evidence related to the outage.

And warranty manufacturer?

Warranty manufacturer or manufacturer's warranty is also an optional coverage. However, it may be of interest when no commercial guarantee is offered by the seller or when it is limited. Like the latter, it does not prevent the implementation of legal guarantees.

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Insurance of the means of payment

Payment on the Internet, firing or simple carelessness, falsifying... Nobody is immune from fraud on means of payment. Thus, according to the payment card security Observatory, the savings rate of fraud for cards say 'interbank' (payment and withdrawal) amounted to 0,08% of transactions for the year 2012, rising for the fifth consecutive year. The average value of a fraudulent transaction is 125 euros, down slightly from 2011. Faced with these figures, what means are made available to consumers to deal with the consequences?

The legal provisions

The order of 15 July 2009 relating to means of payment, transposing the European directive on payment services adopted on 13 November 2007, offers the holder of payment means a number of legal guarantees. Thus, in the event of fraudulent use of the card without typing the code, the Bank must compensate the owner of the full amount of the fraud. However, if the fraud was carried out with the secret code entry (the pensioner was unwise, and the fraudster was able to recover the code), a franchise of EUR 150 remains his responsibility. Only exception to this principle, the consumer must support all of the fraud in the event of fraudulent actions on his part or gross negligence (PIN noted on the back of the card or on a paper kept with the card for example). Remains that it is for the Bank to prove these breaches.

Contractual solutions

Proposed by banks, an average insurance payment is intended to reimburse policyholders for theft or fraudulent use of the cards or checks. As mentioned above, this service can be considered as duplicate with the legal provisions in force. Some banks offer more, but conditional, the reimbursement of the excess of 150 euros. Furthermore, the proposed insurance generally contractually limit the amount reimbursed per claim and per year.

To convince customers of the utility of these contracts, they often include additional guarantees in the event of loss or theft: official papers (identity, passport, and driver’s license card), cash withdrawn within 48 hours prior to their flight or their loss. They also include a helpline in the event of lost keys or even legal assistance.

Rates are variable according to the institutions, of the order of EUR 20 per year on average.

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Sports insurance

Sport is one of the main causes of accidents of everyday life. In principle, and without exception, nothing obliges to take specific insurance for the practice of physical and sporting activities. Indeed, in most situations, the guarantee of civil liability, it is incorporated in the contract of insurance or underwritten by the structure in which the sport is practiced, cover damages caused to a third party. Insurance may be needed to cover the damage that the sporting cause itself.

Sports accident liability

Liability, these are the principles of the Civil Code that apply to sporting accidents: thus, to receive compensation, the athlete injured by a third party must prove the fault of the latter, unless the damage is caused by an object or an animal (the responsibility is then presumed).

If the responsibility is engaged, it is liability insurance that supports compensation of the victim. This warranty may be either subscribed individually linked to membership of a sports group.

Damage caused to another

Insurance vary depending on whether the sport is practiced within a structure or as an individual.

Framed sport

Any organizer of physical and sporting activity has to conclude collective contracts of insurance covering the liability of all participants.

Thus, regardless of the sport (skiing, horse riding, diving, sailing, hiking...), if it is practiced within an association, an establishment of physical and sporting activities or structure of animation, athlete liability insurance is covered by the insurance of the structure.

Even if the athlete is licensed to a sports federation, it benefits from the insurance of liability must be signed by the federation.

For damage caused during class hours, it is the State that covers the damage.

There are two exceptions to this principle obliging the personal purchase of insurance guarantees. It comes to the practice of underwater fishing for recreation and outputs optional school for which a special insurance must be purchased.

Practice on an individual basis

When an athlete is responsible for injury caused to another person, it is civil liability that supports compensation of the victim. This warranty is included in insurance contracts. However make sure that the sport is not excluded from the contract. Where appropriate, it is necessary to purchase an extended warranty.

Damage to oneself

For damage caused to oneself (and they are many because often, the victim is injured every single one), it is advisable to take a specific insurance, particularly for deemed dangerous sports and activities at sea or in the mountains that might require pay relief.

The clubs have the obligation to inform their members of their interest to take a contract of insurance to cover bodily injury which may occur during the practice of sporting activities.

Several contracts can support the damage: the guarantee of the accidents of life, insurance personal accident, and extra - school insurance for children.

As well; the 'Accidents of life guarantee' contract (GAV) is a contract of foresight with a core of minimum guarantees. It guarantees compensation, apart from any search for liability in case of death, permanent functional deficit, and permanent disfigurement following an injury accident. Beyond the common minimal base, each insurer can expand the coverage of the base contract by proposing some additional guarantees, for example, compensation for bodily injury resulting in a disability of less than 30% (minimum rate foreseen by the basic contract). Where the interests of good study contracts before subscribing.

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Insurance in Winter Sports

Here comes the time of the winter holidays. Each year 8 million French go on winter sports. But be careful! The pleasure of winter sports sometimes pays dearly: about 150,000 vacationers have every winter a gliding accident. Before putting on skis, it is useful to take stock of its insurance.

The coverage provided by the 'classic' insurance contracts

You have no doubt already, may be unknowingly several insurance that can cover you for costs incurred. Insurance which can guarantee the risks associated with winter sports are in fact numerous: health, multi-risk, guarantee of the accidents of life, contract of assistance. It is important to make a point on its contracts before leaving and to subscribe a specific if necessary.

In case of accident, it is imperative to prevent the assistance company before incurring any expenses. The insured also has 5 days to declare his accident with its insurer by registered letter.

Support for medical expenses

If you go on vacation in Europe, in a State of the Union European/European economic area (EU/EEA) or Switzerland, don't forget to ask your sickness insurance fund insurance (EHIC) European card. This card, valid for one year, is personal and individual: each Member of your family should have its own. No document is to be provided at your request. You will benefit from support for your medical care according to the legislation and procedures in force in the country of stay: you do not have to do the advance of medical expenses; either you must advance and you pay on the spot by the institution for social security of your place of stay. The rest of the coverage will be in supported by your supplementary health insurance: check with its mutual, the level of reimbursement of these costs.

Insurance 'more'

Your credit card may also include a specific guarantee for stays to snow and the mountain: ski stolen or damaged, costs of research or rescue, or package equipment hire and ski lessons. Attention must be paid to its contract, because all the cards do not offer the same covers: more map is high-end, most offering guarantee. If you are holding multiple cards, insurance depends on the card used to make the payment. Insurance card covers in general the card holder, his spouse but also children and small children less than 25 years. It is your bank which will provide even better information on insurance linked to your card.

Apart from these specific insurance covers are often proposed, i.e sports winter or when you book your trip: interruption of stay, ski breaks, or even lack of snow during winter. The average cost is $ 3 per person and per day.

Finally, it must not forget that these various insurances are cumulative so that if one of them is capped you can use a second insurance to complement: the housing guarantee may thus be completed by credit card insurance. In all cases, it is necessary to pay attention to deductibles and reimbursement ceilings provided for in the contract.

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Insurance Civil liability

Civil liability, defined by law in articles 1382 and seq. of the civil code, established the obligation to repair the damage inadvertently caused to another. Civil liability can ensure and it then the insurer to compensate the victim.

What are the damage covered by liability?

Situations where the liability of a person may be held liable are listed in articles 1382 and seq. of the Civil Code.

It is:

• damage caused by a person to another person by his fault, imprudence or negligence;
• acts committed by minors of this person;
• the acts committed by the employees of House of this person (woman's household, custody of child...);
• damage caused by objects that the person holds;
• damage caused by animals of this person or those she keeps;
• damage due to aging or the lack of maintenance of the apartment or the House of the person.

What does liability insurance cover?

Liability insurance allows to not compensate yourself the victim. The insurer so overrides the responsible and compensate the third party.

This warranty can be purchased individually or home insurance. It can also be contracted for certain activities only in the context of school insurance, ski insurance or a membership in a sports club.

Civil liability covers the Subscriber and persons residing permanently in the home of it. Some contracts also cover unmarried children who do not live under the roof of the insured, if they do studies for example.

Civil liability thus covers the financial consequences resulting from damage caused to others by his own act and by the fact of people, animals and movable and immovable property which it is responsible.

What are the limits of civil liability?

Liability covers cases where a person cause unintentional damage to others.

Thus, is not covered:

• voluntarily damage to others;
• the damage that a person causes to itself or its close living usually with her;
• damage caused in a professional activity;
• damage caused by vehicles (insurance required specific);
• the damage caused by dangerous dogs (excluded from certain contracts).

The elements to be considered when:

• check that all persons of the fireplace are well covered.
• check sports, hobbies or volunteer activities are covered (the appropriate subscribe extension);
• pay attention to the existence of a possible franchise requiring the Subscriber to pay part of the compensation itself.

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How to write the beneficiary clause of a contract of life insurance

All contracts of life insurance, death or retirement savings have a beneficiary clause. It allows to designate persons who as the case will receive the capital or annuity after your death. It is therefore very important.

This clause may be drafted at the signing of the contract or filed with a notary.

A 'standard' clause contained in the contracts

This clause can be written about just when you complete the subscription of the contract and answers to the most common objectives of transmission. It usually involves that available funds will be forwarded to the death of the Subscriber:

·       spouse or partner from PACS;

·       failing that, his children born or unborn, alive or represented by equal shares;

·       or finally to the other heirs.

Customize the clause...

If the standard clause does not suit you, you can change to denote that you see fit. It is possible to customize this clause according to your wishes: it can be to give priority to a child or a third party, for example, or an association. It is also possible to provide for a different apportionment according to the beneficiaries (50% for my son Paul, 25% to my wife Marie, 25% to my grandson Arthur...), or even to "dismember" the rights of this clause (the usufructuary enjoys the right to enjoyment and revenues of the property and the bare owner covers the full ownership to the extinction of usufruct). In short, one can almost all be! However, some precautions are necessary, including if the beneficiaries are not reserving heirs could ask the judge to return the value of the contract in succession, by invoking the notion of "manifestly exaggerated bonuses.

... The change

Of course, is not the point every year on these issues? And yet, life events (marriage, divorce, breakdown of PACS, births...) make it essential to sometimes ask the question so that this clause is adapted to your situation. If this clause is no longer in line with your wishes of transmission, if you want to add or remove a beneficiary or refine the existing entries, you can do so by sending an email is:

·       Your insurer; the letter must be written, dated and signed by your hand, and include references to your contract as well as a designation very specifies the recipient (s). BYOW notifying these changes will be sent to you by the insurer (if the clause has been drafted by the insurer)

·       To your notary to record your wishes in a will. So the beneficiary rapidly collect funds, don't forget however to mention the references of the contract (name of the insurer, number...). At the same time, don't forget to contact your insurer of the notary responsible for your estate.

The pitfalls to avoid

Designate a single beneficiary is to take the risk, if it disappears prematurely, that capital be reintegrated to the estate and taxed at the scale of human mutation.

·       You can designate multiple beneficiaries jointly (' my spouse and my children born or unborn ' or 'my father and mother') or successively ("my spouse, failing that, my children born or unborn, alive or represented, unless my heirs").Only the mention 'live or represented' helps the children of a deceased beneficiary to be not excluded from sharing.

·       Be specific in the designation of beneficiaries... Avoid formulations little explicit ("my friend Jean") specifying the names, date and place of birth of the beneficiary. Finally, you should be aware that if you specify the recipient by its quality, it is assessed on the date of transmission of the capital: "to my wife" will be one that will have this quality to your death.

·       But do not be too! for example, if you specify 'my children Julie and Sophie', this can problematic with the arrival of a third child, while "my children, living or represented" would have sufficed.

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What are the collected fees?

Insurers are growing savings on behalf of their clients. They compensate by deducting various expenses. The main are the fees on payments, deducted from each investment. They reach up to 5% of the placed amount. Each year, companies also levy capital management fees, which range from 0.4 to more than 1%. They are in addition to the internal costs of the selected media.
These costs impact the actual financial performance.

How to see clear on costs?

All fees collected in a life insurance contract must be clearly stated and gathered in its general conditions. They appear in a present box as soon as the first or second page of this document, gathered together in a single entry. No other fees than those listed here may then be requested, for the duration of the contract.

On the other hand, the UCITS used for support by the units of account management fees do not appear in this regulatory text box. To know, please read the information leaflet of the Fund which is supplied on request by the Distributor, or you can get on the website of the financial markets authority. Their importance is secondary for the policyholder insofar as these costs are directly deducted from the performance announced by such UCITS.

In all cases, it should be good to measure all the costs of a contract before purchasing it. Long term, the more forgiving are the annual management charge of life insurance it even, which are collected annually on constituted capital.

However, fees vary greatly depending on the nature of the contract and its mode of distribution. The products sold on Internet, personalized advice, and very simple products in general have low charges. Very complete contracts, incorporating many funds and sold by advisers, are more heavily loaded.

How to retrieve my money?

Life insurance is a long-term investment, but saving is generally still available.
There are three ways to retrieve the capital: only once in many, or transforming those into annuity, i.e. an income paid until death.

The insured automatically receives the accumulated capital is alive to the expected term of the contract, the insurer paying a check representing the entirety of his savings. If there no need of this money at this time, the insurance company suggested generally postpone the exit by renewing the contract by tacit agreement.
This contract period is indicative: If you need your money sooner than expected, it is not blocked. Each contract includes in fact a 'redemption value' permanent, corresponding to the net amounts paid and financial upgrading’s. Rare life insurance levy penalties of output if it is early, but may not exceed 5% of the amounts paid.
When the insured dies before the end of his contract, capital shall be paid to the 'beneficiaries in case of death' that it has appointed.

Three exit doors

Three exit doors exist in most life insurance contracts:

·      The «redemption» total corresponds to a definitive closure of the contract. You remove at once all your capital. It is a decision without return and if you again want to save in the context of life insurance, you will need to open a new contract then wait eight years to optimize taxation. The closure of a contract by total redemption may also lose inheritance, acquired benefits through the age of your payments.

·       The partial redemption to remove part of the constituted capital, while leaving the balance grow. It is a very practical solution to supplement income during retirement, or to deal with an unexpected expense. Money that remains on the contract retains all the tax benefits acquired from the origin.

·       The transformation into a life annuity is to exchange its savings - or part - against a regular pension, paid by the insurer to the insured's death. It's a radical solution, because savings is not yours. In return, you can be sure to receive this income as long as you are alive, even if you beat longevity records.

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How subscribe to life insurance?

Life insurance is sold by insurance companies, banks, mutual, on the Internet and even in the financial areas of stores. There are hundreds of different products.
At the opening of a contract, you make a first payment of money and the insurer issuing you legal documents, such as the General conditions or information leaflet, as well as subscription bulletin.
In general, contracts leave the freedom to invest when you want, but we must respect a minimum amount that varies from a few dozen to several thousand euros.

A few tips...

·       There are contracts requiring the insured to make regular payments, typically every month. These products are deprecated, because they are almost always accompanied by penalties in the event of interruption of the payment of contributions.
It is better to choose a contract "to free payments', you will feed to your own liking. Including by regular payments directly debited from your bank account, if you wish to save each month. You can change or stop these samples when you want to, without any consequences.

·       Some life insurance combine both a protection in the event of death and a guarantee in the event of life. They are usually punitive. Better subscribe two distinct products: one for saving, one for death insurance to protect your family if your wealth is not sufficient in the case of premature death.
In all cases, you can hold as many contracts as you want: the detention of life insurance is bounded neither in number nor in amount.

Designate beneficiaries

At the opening of a contract, the intermediary invites you to designate the beneficiary in case of life (you in general) and to indicate recipients who would receive capital if you were to disappear prematurely.

The designation of these beneficiaries in case of death is free: you can indicate the person of your choice, without any limitation. This designation can be changed as often as necessary. Similarly you can stipulate a non-egalitarian between beneficiaries distribution if desired.

It is preferable to designate several rows of beneficiaries in case of death. Thus, if the first on the list are deceased, are returning beneficiaries indicated in the second row, and so on. All contracts provide a beneficiary clause type suitable for the majority of the subscribers, which provides that the funds are paid in case of death "to the spouse, failing children born or unborn, alive or represented, failing to the heirs.

If these provisions are not suitable for you, change them to reflect your priorities.

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Why take out insurance?

Without insurance, person travels by car, person would start skiing, nobody would repair his roof... without insurance, and nobody would take a risk! Or cannot do otherwise than to take risks in the life of every day, even if the accident is not a fatality.

A bit of history!

The appearance of insurance is a recent phenomenon, in France it dates only from the end of the old regime (1686: founding of the General company of big adventures and insurance); Although as early as the 14th century Italian merchants had found a way to protect their ships against losses suffered during a shipwreck or due to the ravages of the pirates. They created associations to establish funds to compensate them (code of Amalfi). The development of the insurance is linked to economic and social transformations: the transition from an agricultural economy to a diversified economy has multiplied the causes of damage (industry, trade), and the concentration of populations in cities with the appearance of new housing and new ways of life spawned new scourges.

Danger, risk, accident... negative gearing to be anticipate

The principle of insurance is based on the concept of risk, i.e. the exposure to a hazard potential, inherent in a situation or an activity, and could not face the financial consequences, whether related to property or persons. The danger is the prelude to the risk which is the prelude to the accident. Thus the danger having been identified, risk becomes perfectly describable, it is likely to occur but it is not known whether it will be carried out and when it materializes. Insurance is a contract: in consideration of the payment of a fee, also called premium, the insurer guarantees specific benefits to an individual, an association or a company in case of a risk clearly identified in the contract. The notion of risk is a key insurance, it is a random event dreaded by an insured for its financial consequences. The hazard is based on three criteria:

The future: we cannot ensure a car accident that has already occurred;

The uncertain: we cannot ensure a certain risk that materializes at a date known;

The involuntary: cannot ensure the damage that the insured causes or causes on a voluntary basis.

Make sure to protect property and persons

Damage insurance

The traditional vocation of insurance is to allow replacement of goods destroyed or cannot stolen. In addition, today the liability in the field of life insurance domestic, professional activity, traffic and recreation has grown considerably. In this case, to ensure against damage and the potential damages involuntarily caused to third parties.

Property insurance and liability insurance are designed to protect the heritage of the insured. They are, for some grouped in "casualty" contracts (multi-risk housing, property & casualty company...). The most common property insurance are fire insurance, theft insurance, water damage or breakage of ice but other types of events are automatically included (natural disasters, attacks,...) or optional.

Insurance of persons

Insurance covers the risks that affect the person, either in his physical integrity (insurance bodily injury, health...), and either in its existence (life assurance). They offer a complete set of solutions adapted to each situation.

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What should I expect from a rental liability insurance?

As there is standard no. are in the field of the rental risk, you would be wise to consider what insurers offer before you buy. Ask what are the situations provided for by the police that we offer. For example, some policies exclude the vandalism or damage caused by a flood. Insurance all risks covers an extensive list of claims, while specific risks (perils) insurance covers only claims listed in the police. Ask the insurer to clarify if the proposed policy covers the total cost of moveable assets (value on the day of the accident) or the cost of their replacement (replacement value). Some fonts take account of depreciation of assets (the decrease of their value due to normal wear and tear), so that the holding will have to pay the full price to replace. Make sure, also, to cover not only the price of your goods, but also, if necessary, expenses to clean or repair (for example, in the event of fire or damage caused by water).

It is of the utmost importance that you asked the insurer to explain exactly what the proposed policy covers and does not cover. If you do not understand the meaning of a term in particular, ask for a detailed explanation. You might want to learn more about:

> liability

> warranty

> additional living expenses

> the replacement value

> Flight

> franchises

> discounts

> expressly insured items

Where can tenants buy rental liability insurance?

Rental liability insurance is sold by most independent brokers and insurance companies. As prices vary, tour suppliers and compare the price and content of the various fonts. Owners are responsible for the maintenance of all equipment heating and cleaning and maintenance of the fireplace chimneys. However, they are not responsible for cleaning the ductwork or ventilation hatches, unless they are blocked and do not allow air to enter a room.

As a general rule, owners are not required to clean the pipes for tenants who have allergies or respiratory problems. An owner may need to clean the pipes if the regional health authority issues an order for that purpose, or if the assurances given by the landlord concerning the ducts are erroneous. Take for example taking a who informed the owner of his allergy to cat hair before agreeing to rent housing. If the owner gives him the assurance that there has been cat no in housing and taking into view, once moved, of cat hair in the ducts, the onus then the owner to clean the pipes. Owners must always ensure that the temperature in their homes meets the minimum standards of the province. Although there's no fixed date for switching on the heater, the temperature in a building or shelter can never be below 18.3 ° c (65 ° f) and at any time during the year. During the day, between 7:00 AM and 11:00 PM the owner must ensure that the temperature never drops under the 21 c (70 f). A tenant who believes that the owner does not comply with minimum standards for heating should contact their local environmental health office.

Rental tenancies branch usually considers the situation as urgent when a heating installation is not functioning properly during the winter months and reminded the owners their obligation to see to the inspection and regular maintenance of their heating equipment to ensure that it does not fall down during cold days. The holding is responsible for cleaning the home and hatches for ventilation (floor and ceiling) installed in its housing. If the boiler is located in the housing, the owner can ask the holding to replace the filter in it and inform him of the frequency of this replacement and the required filter type. Tenants and owners who have questions about repair and maintenance of their building work can obtain information from the rental residential tenancies branch.

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