Chapter V: Insurance against natural disasters.

Insurance undertakings must include in the contracts referred to in article L. 125-1 a clause extending their cover to the losses referred to in the third paragraph of the said article.

The cover provided in this way may not exclude any of the property mentioned in the contract or make any deductions other than those set out in the standard clauses provided for in article L. 125-3.

It is covered by an additional premium or contribution, identified individually in the notice of maturity of the contract referred to in article L. 125-1 and calculated on the basis of a single rate defined by decree for each category of contract. This rate is applied to the amount of the main premium or contribution or to the amount of capital insured, depending on the category of contract.

From the date of receipt of the claim declaration or the date of publication, if later, of the administrative decision declaring the state of natural disaster, the insurer has a period of one month to inform the policyholder of the procedures for invoking the cover provided under the contract and to order an expert assessment if the insurer deems this necessary. It will make a proposal for compensation or reparation in kind under this cover, within one month of either receipt of the estimate sent by the insured in the absence of an expert report, or receipt of the final expert report. From receipt of the policyholder's agreement to the proposed compensation, the insurer has a period of one month to appoint the repair company or a period of twenty-one days to pay the compensation due. Failing this, and except in the case of fortuitous events or force majeure, the compensation due by the insurer shall bear interest at the legal rate from the expiry of the latter period. All the time limits to which insurers are subject apply without prejudice to more favourable contractual stipulations. Compensation under this cover is subject to an excess, the characteristics of which are defined by decree. These characteristics, in particular the amount of this excess, take account of the hazard; for professionals and for legal entities under private or public law, they take account of the size of the capital insured and the use and size of the goods insured. In the case of land motor vehicles and property not intended for professional use, they may take account of the excesses applicable to other cover against natural hazards provided in the contracts mentioned in article L. 125-1. Deductibles must also be mentioned in each document provided by the insurer describing the conditions of compensation. The insured must be reminded of these conditions each year. Up to the value of the insured property at the time of the loss, the compensation due to the insured in respect of losses caused by differential ground movements resulting from drought and soil dehydration covers the work required to remedy the existing damage caused by the event if the expert assessment reveals that the solidity of the building has been compromised or that the property is in a condition that makes it unfit for its intended use. Notwithstanding any stipulation to the contrary, the contracts referred to in article L. 125-1 are deemed to include a clause requiring the insured to notify the insurer of any claim likely to give rise to the cover referred to in the same article L. 125-1, as soon as he becomes aware of it, and at the latest thirty days after publication of the decree recognising the state of natural disaster. The insurer provides the insured with the final expert report relating to the declared loss. In the case of claims caused by drought and soil dehydration, the insurer will also provide the policyholder with a report of the observations made during each visit. In the case of contracts taken out by natural persons and covering damage to property used as a dwelling or to non-professional land-based motor vehicles, the insurance policy indicates the possibility of having recourse to a second expert opinion in the event of a dispute relating to the application of natural disaster cover. If the policyholder disputes the conclusions of the expert's report with the insurer, the insurer informs the policyholder of his right to have a second expert's report carried out under the conditions set out in the contract and to be assisted by an expert of his choice.

In any event, an advance on the compensation due under this cover must be paid to the insured within two months of the date of submission of the estimate of the damaged property or the losses suffered, or the date of publication of the administrative decision declaring the state of natural disaster, if this is later.

With the exception of property insured by local authorities or their groupings for which a plan for the prevention of foreseeable natural risks has been prescribed but not approved within the regulatory timeframe, no adjustment to the excess payable by the insured may be applied due to the absence, in these local authorities or these groupings, of a plan for the prevention of foreseeable natural risks as provided for in article L. 562-1 of the Environment Code.