Home Insurance Legislation in Morocco

The Moroccan Insurance Code

The insurance sector in Morocco is mainly governed by Law 17-99 establishing the Insurance Code, promulgated by the dahir of 3 October 2002. This fundamental text frames all insurance operations in the country.

Fundamental principles

The Insurance Code rests on several principles:

• Good faith: the policyholder must declare the risk accurately
• Insurable interest: only what has economic interest to oneself can be insured
• Indemnification: the goal is to restore the policyholder to their pre-claim situation, not to enrich them
• Subrogation: the insurer who has indemnified can turn against the party responsible for the claim

ACAPS: the supervisory authority

The Insurance and Social Welfare Supervisory Authority (ACAPS) is the independent body that regulates the sector. Its missions:

• Issue approvals to insurance companies
• Monitor the solvency of insurers
• Protect policyholders' rights
• Sanction breaches
• Propose regulatory reforms

Recourse to ACAPS

In case of dispute with your insurer, you can refer the matter to ACAPS. The procedure is free and can be initiated by mail or online.

Policyholder obligations

At subscription

• Accurate risk declaration: surface area, location, use of the property, security measures. Any false declaration may render the contract void.
• Premium payment: on the dates and according to the agreed terms.

During the contract

• Declaration of changes: extension work, swimming pool installation, change of use, etc.
• Maintenance of preventive measures: if your contract provides obligations (functional alarm, certified lock), you must respect them.

In case of a claim

• Declaration deadline: 5 working days from the claim date (2 days for theft)
• Preservation of evidence: do not throw away damaged goods before the expert's visit
• Provision of supporting documents: photos, invoices, repair estimates

Policyholder rights

Right to information

Before subscription, the insurer must provide you with:

• An information sheet on the contract
• The general and specific conditions
• The premium amount and payment terms

Right to cancellation

The Insurance Code provides for several cancellation cases:

• At annual maturity: respecting the notice period (usually 2 months before the anniversary date)
• In case of change of situation: moving, sale of the property, divorce
• In case of contract modification by the insurer: premium increase not justified by a claim

Right to indemnification

• The insurer must compensate you within the deadlines provided in the contract
• Indemnification is based on the value of the property on the day of the claim (depreciation deducted), unless there is a replacement-value clause
• You can contest the amount proposed by the expert

Is home insurance mandatory?

For tenants

Yes, partially. The Code of Obligations and Contracts (DOC, articles 692 onwards) requires the tenant to return the property in good condition. Third-party liability insurance (rental risks) is in fact mandatory.

For owner-occupiers

No. No legal obligation requires an owner to insure their home. However, it is strongly recommended.

For co-ownerships

Yes, for common areas. Law 18-00 relating to the status of co-ownership requires insurance of common areas. Each co-owner must insure their private areas individually.

Recent developments and outlook

After the Al Haouz earthquake (2023)

The September 2023 earthquake highlighted the low penetration rate of home insurance in Morocco (estimated at around 5% of households). Reflections are underway to:

• Make natural disaster insurance more accessible
• Create a solidarity fund for the uninsured
• Strengthen public awareness

The natural disaster compensation scheme

A draft law is under discussion to set up a compensation scheme for natural disaster victims, inspired by the French model (Cat Nat scheme). This system would allow better population coverage.

Practical tips

1. Read your contract: the general and specific conditions contain all essential information
2. Respect deadlines: 5 days to declare a claim is short
3. Keep a copy: keep a copy of your contract and your certificates
4. Know your rights: in case of dispute, ACAPS is your recourse
5. Stay informed: regulations evolve, particularly on natural disasters