Non-Occupying Landlord Insurance in Luxembourg: complete guide for 2026

Non-occupying landlord insurance (PNO) protects your property when you are not living there yourself — whether it is let or vacant. In Luxembourg, it is not a legal requirement, but it is essential in practice: banks require it for mortgage lending, condominium rules may impose it, and an uninsured property exposes you to significant financial risk. It covers the building, your liability as a property owner, and applies during void periods between tenancies.

What is non-occupying landlord insurance?

Non-occupying landlord insurance (PNO) is a home insurance product specifically designed for property owners who do not live in their own property. It is aimed at landlords who let their property, as well as owners whose property is temporarily vacant between tenancies.

In Luxembourg, it covers the same risks as a standard comprehensive home insurance policy — fire, water damage, theft, glass breakage, natural disasters — but tailored to the landlord’s situation. It complements the tenant’s home insurance and protects your property assets against claims for which the tenant bears no responsibility.

The fundamental difference from owner-occupier insurance lies in the nature of the risks covered. As a non-occupying landlord, you remain responsible for the condition of the building and its installations, but you are not exposed to claims arising from an occupant’s day-to-day domestic negligence.

Terminology: PNO, landlord, co-owner

Several terms describe closely related situations. A non-occupying landlord (PNO) is any person who owns a property they do not live in themselves, whether it is let or vacant. A landlord actively lets their property and receives rental income. A non-occupying co-owner owns a unit in a condominium (flat, parking space, cellar) that they let to a third party.

In Luxembourg, the four approved insurers — LALUX, Foyer, AXA and Baloise — offer home insurance products that can be adapted to the PNO situation, with optional cover specifically designed for landlords.

Is non-occupying landlord insurance compulsory?

In Luxembourg, no law requires home insurance, whether you are an owner-occupier or a non-occupying landlord. This is a notable difference from France, where the ALUR Act of 2014 obliges co-owners to take out insurance. Here, it is entirely your own decision — though in practice it is almost unavoidable.

The Luxembourg legal framework

The amended law of 21 September 2006 on residential tenancies (revised in August 2024) sets out the landlord’s obligations towards the tenant (delivering the property in good condition, maintaining the premises), but contains no insurance requirement. The absence of a legal obligation does not mean you can manage without cover: the financial consequences of a serious claim can run to tens or even hundreds of thousands of euros.

Situations where PNO insurance becomes essential

With a mortgage, the bank will systematically require home insurance covering at least fire and building liability. Luxembourg banks generally make their lending conditional on the property being insured.

In a condominium, the management rules may require each co-owner to take out insurance. The managing agent may ask for an annual certificate. This requirement is designed to prevent an uninsured co-owner from causing damage to common areas or other units without being able to compensate victims.

During void periods, your property has no insurance cover if you have not taken out PNO insurance. Yet a vacant property remains exposed to numerous risks: electrical faults, undetected water leaks lasting weeks, frozen pipes in winter, burglary. Without PNO insurance, you bear all costs alone, and you may be held liable if a claim spreads to neighbours.

What we see on Switchr: 68% of landlords who consult us have no separate non-owner-occupied coverage at the time of their first enquiry, despite being exposed across all rental vacancy periods.

What does PNO insurance cover?

Luxembourg PNO insurance offers cover similar to a standard comprehensive home insurance policy, but tailored to the non-occupying landlord’s situation. Understanding what is and is not covered helps you choose the most suitable policy.

Building liability: the essential cover

Building liability is the absolutely essential cover in any PNO policy. It protects you as the building owner against claims from third parties (tenants, neighbours, passers-by) arising from the property itself. All four Luxembourg insurers offer this cover, generally with high limits.

In practice, building liability applies if a roof tile falls and damages the tenant’s car, if a branch from a tree in your garden breaks and injures a passer-by, if a leak from poorly maintained pipes causes damage to a downstairs neighbour, or if a deteriorated balcony collapses and injures someone.

Building damage cover

Beyond building liability, PNO insurance covers material damage to the building and, where applicable, to furniture provided in a furnished let. Standard damage cover includes fire, explosions, water damage (leaks, burst pipes, roof infiltration, frozen pipes), burglary, glass breakage, electrical damage, and weather events (storms, hail, snow load, lightning).

Flooding and surface water runoff generally require an optional « Climate Perils » add-on. This distinction is crucial in Luxembourg, where the July 2021 floods caused over €133 million in material damage — the costliest natural disaster in the history of Luxembourg insurance (source: ACA). With Baloise, weather events (including flooding) are included as standard across all policies — a notable advantage.

Source: LALUX, Foyer, AXA, Baloise documentation — June 2026.

PNO-specific optional cover

Loss of rent cover compensates you if your property becomes uninhabitable following a covered claim (fire, serious water damage). The maximum indemnity period varies by policy. This cover generally only applies if the property was actually let at the time of the claim — check the exact terms of your policy.

Legal protection covers legal fees and court costs in the event of a dispute with a tenant (unpaid rent, damage, disputed inventory reports), the property management company, or tradespeople. LALUX and AXA offer this as an option. Foyer offers a dedicated rent guarantee (loyer garanti) add-on specifically for non-occupying landlords.

For furnished lets, a specific add-on covers the furniture and equipment provided (furnishings, appliances, bedding, fixtures). Inform your insurer at the time of taking out the policy that it is a furnished let, so that they can adjust the contents cover accordingly.

When should you take out PNO insurance?

PNO insurance is needed in several distinct situations, each presenting specific risks. Identifying your exact circumstances allows you to tailor your cover to the real risks your property faces.

During void periods

A void period is the riskiest situation for an uninsured landlord. When your property is empty between tenants, it has no insurance cover unless you have a PNO policy. Yet a vacant property remains exposed to many risks: an electrical fault can trigger a fire with no one on hand to intervene, a water leak can go undetected for weeks, and frozen pipes in winter can cause significant damage.

Property occupied by a tenant

Even with a tenant in place who has their own insurance, PNO insurance remains relevant. It covers claims where responsibility lies with the landlord rather than the tenant: aged pipework causing a leak, water infiltration through a deteriorating roof, glass broken by a storm. The tenant’s insurance does not cover these situations — your PNO insurance steps in.

PNO insurance also protects you if your tenant is uninsured despite their contractual obligations. Some tenants forget to renew their policy or let premiums lapse. If a claim arises in these circumstances, your PNO insurance can step in and then seek recovery from the defaulting tenant.

Special situations

For a furnished let, you must insure the furniture you provide. The tenant’s insurance covers only their personal belongings, not your furniture and equipment. PNO insurance with the contents add-on protects you against theft, damage, fire, and water damage.

Properties undergoing renovation present heightened risks: the property is unoccupied and flammable materials are stored on site. Always inform your insurer before undertaking major works — some insurers offer specific policy extensions to cover this period.

For short-term lettings (e.g. Airbnb), check carefully that your PNO policy covers this type of use. Some insurers exclude or restrict cover for lettings of fewer than 30 consecutive days. Ask your insurer directly about this before proceeding.

PNO vs tenant’s insurance: complementary cover

PNO insurance does not duplicate the tenant’s home insurance: the two policies cover different risks and work together to provide complete protection for the property and its occupants.

Source: Luxembourg civil law principles — June 2026.

When the tenant’s insurance falls short

Several scenarios illustrate why PNO insurance remains essential even with a well-insured tenant. If the tenant has taken out minimal cover (rental liability only), their property damage cover may be non-existent or insufficient for a major claim. When damage is caused to the building itself (rather than the tenant’s personal belongings), your PNO insurance is the only policy that applies.

Some tenants find themselves without valid insurance despite their commitments: expired policy, unpaid premiums, or failure to take out cover despite a contractual clause. If a claim arises in these circumstances, your PNO insurance steps in and can then seek recovery from the defaulting tenant.

How much does PNO insurance cost in Luxembourg?

The price of PNO insurance in Luxembourg varies according to many factors. It is generally less expensive than owner-occupier home insurance, as some of the risks associated with daily occupation are lower. It is not possible to give a single rate: each insurer calculates premiums based on a personalised risk assessment.

Indicative price ranges for 2026

As a guide, home insurance premiums in Luxembourg typically vary by property type and size. For a condominium flat, the building benefits from collective insurance for the common areas, which reduces the scope of cover needed for the individual owner. For a detached house, the cover is broader (roof, facades, garden, outbuildings) and the premium is correspondingly higher.

Indicative estimates based on average Luxembourg market rates — June 2026. These ranges vary depending on the level of cover, location and risk profile. Request a personalised quote from each insurer.

Factors influencing the premium

Location plays an important role. A flat in Luxembourg City will generally cost more to insure than an equivalent property in a rural area. Properties in flood-risk zones (Moselle, Sûre, Alzette river catchments) may attract a loading for Climate Perils cover.

The property type has a strong influence on the premium. A condominium flat benefits from collective insurance for the common areas. A detached house requires broader cover and therefore a higher premium.

The level of cover chosen makes a significant difference to price. A basic policy (building liability and essential damage cover) costs considerably less than a comprehensive policy with add-ons (loss of rent, legal protection, contents cover, climate perils). In the Luxembourg market, home insurance policies apply varying excess levels by insurer and cover type — check this point in the contractual terms when comparing.

Tax deduction on PNO premiums

One of the major advantages of PNO insurance is its tax deductibility. Unlike owner-occupier home insurance (which is not deductible), PNO premiums are a deductible expense against your rental income when you let the property.

The deduction regime in Luxembourg

If you let your property in Luxembourg and declare your rental income under the actual expenses regime with the Administration des contributions directes (ACD), all PNO insurance premiums paid during the year are 100% deductible from your taxable rental income. This deduction applies to the base premium and any add-ons (loss of rent, legal protection, contents cover).

Keep your insurance receipts and payment records carefully: the ACD may ask for supporting documents in the event of a tax audit. Include the total amount of PNO premiums in the deductible expenses section relating to your rental income in your annual tax return.

Real impact on your budget

Take a practical example. You own a flat that you let for €1,500 per month (€18,000 per year). You pay an annual PNO premium of €400. Your marginal tax rate is 30% (typical for a median-bracket taxpayer in Luxembourg).

With the tax deduction, you save €400 × 30% = €120 in tax. The actual cost of your PNO insurance is therefore only €400 − €120 = €280 per year, or roughly €23 per month. This net cost is negligible compared to the protection it provides. For a taxpayer on a higher marginal rate, the tax saving is even greater.

Insurer comparison for PNO cover in Luxembourg

All four approved insurers offer policies that can be adapted to the non-occupying landlord’s situation. Here is an overview of each offer, based on information available in June 2026. As prices are personalised, request a quote from each insurer for an accurate comparison.

LALUX — easyPROTECT Habitation

LALUX offers its easyPROTECT Habitation insurance in three tiers: Sécurité, Confort, and Performance. These can be taken out as a non-occupying landlord, with the option to add Building Liability cover. A specific « Co-owner occupying and non-occupying » package covers your share in the event of a claim affecting common areas.

Building Liability is available as an option across all tiers. The « Co-owner occupying and non-occupying » package covers your share where there are differences between your individual policy and the condominium’s collective insurance. Legal Protection is available as an option and covers tenancy disputes in particular. Home Assistance (electrician, plumber, locksmith, heating engineer) is available as an option around the clock. The Climate Perils cover is an option for the Confort tier and included as standard in the Performance tier.

Foyer — mozaïk Habitation

Foyer offers its mozaïk insurance, a modular system allowing you to build a bespoke policy. You combine essential cover (fire, water damage, storm, liability) with useful additions and modules tailored to your needs as a landlord.

Foyer offers optional cover specifically designed for non-occupying landlords: non-occupying landlord liability (essential), building legal protection covering tenancy disputes, and rent guarantee (unpaid rent insurance). Loss of rent following a covered claim is included in the basic cover. A leak detection service is included. You can choose your indemnity basis (new-for-old or actual value). Customer service is available 24/7.

AXA — OptiHome

AXA Luxembourg offers OptiHome in two tiers: Active and Privilège. The Active tier is designed for flats and already includes building liability for property owners. The Privilège tier offers broader cover with options to add according to your specific needs as a landlord.

A notable feature of AXA: building liability and building legal protection are included in the base cover at no extra charge. Theft is also included in the base cover. Rain and flood cover is available as an option. AXA includes emergency assistance Emergency@home (24/7) as standard, plus an optional Handyman service with preferential rates from approved professionals. An online price simulator is available at axa.lu.

Baloise — Home

Baloise offers its Home insurance, a comprehensive home policy adaptable for both owner-occupiers and non-occupying landlords. Non-occupying landlords can add optional cover for unpaid rent and property damage caused by tenants.

A distinctive advantage of Baloise in Luxembourg: weather events (flooding, storm, hail, snow) are included as standard across all tiers, with no extra add-on required — which is unusual in the Luxembourg market. Non-occupying landlords can add optional cover for unpaid rent and damage caused by tenants. Baloise offers GoodStart, a fully online application process. Claims can be reported 24/7 via the MyBaloise portal.

How to take out PNO insurance

Taking out PNO insurance in Luxembourg is straightforward and can generally be done within a few days. Here are the steps to follow and the documents to have ready.

Documents typically required

Insurers generally require few documents for a PNO application. Prepare your full contact details (identity, address, contact information), the exact address of the property with a description (type, size, number of rooms, approximate year of construction), and the occupancy status (let, with details of the current tenancy, or vacant). For a condominium property, the management rules may be requested. If you have a mortgage, your bank may require the policy to include a beneficiary clause in its favour.

Steps to take out a policy

When to take out a policy

Ideally, take out your PNO insurance as soon as you acquire the property, even before letting it. A claim can arise at any time, including during renovation work before the first tenancy.

If you are moving from owner-occupier to landlord status, notify your insurer immediately. Your current home insurance no longer covers the letting situation once you have vacated the property. Your insurer will adapt your policy or point you towards an appropriate PNO solution.

Frequently asked questions