In Belgium, each tenant has the obligation to take out home insurance to cover the occupied property. The waiver of recourse clause allows the owner to manage the protection of the home he owns himself.

What does "waiver of recourse clause" mean?

Most of the time, a rental property is doubly insured:

● by the tenant, who has the duty to return the property in the state in which he took possession of it and who covers himself against damage that he could be responsible (fire, water damage, etc.);

● by the owner, who insures what is not the responsibility of the tenant (flood, fire following lightning, etc.).

The waiver of recourse clause consists in relieving the tenant of the obligation to take out his own home insurance. The owner takes care of this and passes it on to the surplus of the premium he pays on the monthly charges.

What are the advantages and disadvantages of the clause of waiver of recourse against the tenant?

For the owner: the main advantage lies in the good knowledge (normally) of the coverage he benefits. When home insurance is taken out by the tenant, the landlord does not necessarily know the level of protection that the insurance offers. And if the tenant doesn't pay their insurance premium, the coverage is potentially zero.

This opt-out clause of course represents an additional cost for the owner, but it can (at least in part) pass it on to the tenant.

For the tenant: the interest of the waiver of recourse clause for the tenant, it is the certainty of not having to intervene in case of damage covered by the home insurance of the owner.

In addition, the increase in the amount of charges relating to this waiver of recourse clause is generally lower than the insurance premium he would have to pay.

However, the tenant must ensure that he insures his property and takes out civil liability insurance against third parties, for example neighbors. This is also often accompanied by legal expenses insurance.

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