The Minister Delegate in charge of local authorities affirms that the majority of local authorities have insurance companies. Although there are no precise figures on this subject, it is true that local authorities are not obliged to insure their property. Explanations.
The degradations of the last days could cost “between 300 and 400 million euros“says Philippe Laurent, vice-president of the Association of Mayors of France. But who will pay this heavy bill, in particular for the damage to public buildings? The question was put to Dominique Faure, Tuesday, July 4, on Public Senate .
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According to the Delegate Minister of Territorial Communities, the town halls “will have to turn to their insurance companies“. But when the journalist reminds her of the fact that not all communities are insured, the minister replies that, to her knowledge, “the majority of them have an insurance contract“.
However, there are no precise figures that exist: “Local authorities are not required to declare to the State whether or not they have taken out insurance, this is a matter of their contractual freedom.“, explains the Ministry of Ecological Transition and Territorial Cohesion. The office of the Minister Delegate estimates, according to feedback from the field, that at least a little more than half of local authorities are fully insured, which means say that the rest is therefore not completely.
The law does not oblige communities to insure their property
Local authorities, like the State, are by default their own insurer. No law obliges town halls and local authorities in general to insure their property. The Ministry of Territorial Cohesion tells us that local authorities “may nevertheless take out insurance for their property without this constituting an obligation.“
Each local authority will decide whether or not to insure its property, it is the local authority that will assess whether it is worth it, in other words whether the insurance is not too costly in relation to the risks that the buildings incur. The Ministry of Territorial Cohesion adds that “the choice of insurance is left to the freedom of local authorities and a risk/cost calculation.“
Other insurance, they are compulsory for communities
Apart from this general principle, there are some specific legal insurance obligations for local authorities, which do not concern their buildings: insurance known as “motor civil liability” or civil liability for childminders, establishments receiving unsuitable or disabled children or still holiday centres, leisure centers and youth groups.
But apart from these cases, it should be remembered, there is no general insurance obligation for local authorities, in other words, in the event of deterioration of the property, the repairs will be borne by the local authority.