Home Liability Insurance: Tenant vs Owner

What is home liability insurance?

Home third-party liability insurance is a guarantee that financially protects you when you unintentionally cause damage to third parties from your home.

Concrete examples

Your washing machine leaks and causes damage to the neighbour below
A flowerpot falls from your balcony and injures a passer-by
Your child breaks a neighbour's window while playing
A short circuit in your apartment causes a fire that spreads

In all these cases, your home liability covers the indemnification of the injured third party.

Tenant: liability is mandatory

In Morocco, the tenant is required by the Code of Obligations and Contracts (DOC) to return the rented property in the condition in which it was received. In case of a claim (fire, water damage), they are presumed liable unless they prove force majeure.

What the tenant's insurance must cover

Rental risks: damage caused to the rented property (fire, explosion, water damage)
Liability towards third parties: damage caused to neighbours and other third parties
Recourse from neighbours: if a claim at your premises damages neighbouring homes

Liability only or comprehensive?

Criterion	Liability only	Comprehensive
Third-party protection	Yes	Yes
Protection of your belongings	No	Yes
Theft / burglary	No	Yes
Assistance / rehousing	No	Depending on plan
Average price	200-500 MAD/year	800-2,000 MAD/year

Our advice: even if only liability is mandatory, comprehensive is a much better choice. For a few hundred dirhams more per year, you also protect your own belongings.

Owner-occupier: recommended but not mandatory

The owner-occupier has no legal obligation to subscribe to home insurance. However, it is strongly recommended because:

Your home is often your most important investment
An uncovered claim (fire, water damage) can be financially devastating
Liability protects you against your neighbours' claims

Co-ownership: a special case

In co-ownership, insurance of common areas is mandatory (decided in general assembly). However, each co-owner must insure their private areas individually.

Owner-landlord (PNO)

If you rent out your property, PNO insurance is strongly recommended:

It covers the building structure
It complements your tenant's insurance
It protects you in case of rental vacancy (period without a tenant)
It covers your liability as a landlord

What if your tenant is not insured?

If your tenant causes a claim while uninsured, you could be held liable as the owner. PNO insurance protects you in this scenario.

What home liability covers

Covered damages

Bodily injury: medical fees, hospitalisation, third-party disability
Material damage: repair or replacement of damaged property
Intangible damage: loss of enjoyment, moral prejudice
Defence fees: lawyer fees in case of proceedings

Common exclusions

Damage caused intentionally
Damage to your own property (covered by comprehensive insurance)
Professional activities carried out at home
Damage caused by dangerous-category animals (specific insurance)

Practical tips

Tenants: do not limit yourself to liability, subscribe to comprehensive insurance to protect your belongings
Owners: insure your property even without a legal obligation
Co-owners: check the co-ownership insurance AND subscribe to your individual insurance
Landlords: subscribe to a PNO and require an insurance certificate from your tenants
Everyone: keep your insurance certificate and inform your insurer of any changes