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If my house is destroyed, how do I get compensation?
If my house is destroyed, how do I get compensation?
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Written by Ryma
Updated over a week ago

With Luko, your house is guaranteed to be as good as new

What does this mean in practice?

If your house is destroyed and the conditions of your contract are met, an expert will calculate the cost of reconstruction.

This is the amount needed to rebuild an identical house on the same land.

The expert will also determine the rate of depreciation applied to your house.

The compensation will then be paid in two stages:

  • Before the works: a first payment corresponding to the cost of reconstruction with deducted depreciation (this payment cannot be higher than the market value*, if this one is lower)

  • After the work (which must be done within 2 years): a second payment corresponding to the purchase of the depreciation is made on presentation of the reconstruction invoices

*The market value is the price at which you could have sold your property on the day of the damage. In short, you cannot be reimbursed for the reconstruction of your property for a sum higher than what it was worth on the market at the time of the loss.

Let's take a concrete example:

After a disaster, the cost of rebuilding your house is estimated at €200,000

The depreciation is set at 15%.

The first payment will be : 200,000 - (15% of 200,000) = 200,000 - 30,000 = €170,000

The second instalment will be the buy-back of the 10% depreciation, i.e. €30,000


If the reconstruction is carried out elsewhere than on the site of the destroyed dwelling, when it is not absolutely impossible to rebuild on this very site (this impossibility having to result from legal and regulatory provisions), the compensation will not be made at replacement value but with depreciation deducted. There will therefore only be the first payment.

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