Course on the IRSI convention: Everything You Need to Know for the BTS Insurance

Summary

Since 2018, the IRSI convention (Indemnification and Recourse for Building Claims) streamlines the management of claims in co-ownership, particularly water damages and fires. It aims to clarify insurer responsibilities and accelerate procedures for victims.

🏢 What is the IRSI Convention?

The IRSI convention (Indemnification and Recourse for Building Claims) is an agreement established by the French Insurance Federation. It aims to simplify and improve the handling of routine claims, such as water damages and fires, in co-owned buildings or certain individual homes.

A response to the limitations of the CIDRE convention

Before June 2018, the CIDRE convention managed claims related to water damages. However, it was deemed unsuitable for new issues, especially in co-ownership. Its compensation ceilings were too low and it did not include key elements like leak detection. Therefore, the IRSI convention was designed to modernize these rules, considering the current needs of owners, tenants, and insurers.

Precise rules for residential claims

The IRSI convention sets a clear framework for handling claims in buildings. Its main features include:

Practical example: If a water leak causes damage in multiple apartments of a building, the IRSI convention determines which insurer will cover the compensation, avoiding disputes between insurance companies.

Introduction of the managing insurer

A major innovation of the IRSI convention is the designation of a managing insurer, who becomes the main coordinator of steps related to the claim. This insurer’s role includes:

• Organizing leak detection to identify the cause of the claim.
• Assessing damages through an appraisal if necessary.
• Compensating the involved parties, within the defined ceilings.

This system simplifies the process by appointing a single point of contact, enabling time savings and avoiding costly disputes between insurers.

Objective of the IRSI convention

In summary, the IRSI convention aims to:

1. Accelerate damage compensation.
2. Fairly distribute responsibilities among insurers.
3. Reduce disputes and enhance the customer experience for claimants.

🎯 When does the IRSI Convention apply?

The IRSI convention applies in specific situations, with clear criteria to determine claim eligibility. This framework simplifies the management of routine claims in buildings and ensures prompt and fair handling.

Application criteria

For a claim to be covered by the IRSI convention, it must meet the following conditions:

1. Type of claim: The claim must involve water damage or a fire.
2. Damage amount: Damages must be less than or equal to €5,000 excluding tax per damaged unit.
3. Origin of the claim: The claim must originate from a building or neighboring building.
4. Number of involved insurers: At least two insurers adhering to the convention must be involved.

Concrete example:

A water leak in an apartment causes damage in the neighboring unit. If the repair costs are estimated at €3,500 excluding tax, the IRSI convention applies to designate the managing insurer and organize compensation for both parties.

Main exclusions

Despite its broad application, the IRSI convention excludes certain types of claims, notably those related to non-covered causes or external phenomena. The main exclusions include:

• Facade or buried wall infiltrations.
• Damages caused by natural phenomena (storms, hail, lightning).
• Damages due to sewer backups or floods.
• Humidity or condensation without direct link to water damage.

Illustration of exclusions:

A water infiltration from the exterior facade caused by heavy rain will not be covered by the IRSI convention. In this case, the claim will be handled according to common law or other applicable conventions, such as CIDE-COP.

⚙️ How does the IRSI convention work?

The IRSI convention establishes a clear process for effectively managing routine claims in buildings, such as water damages or fires. Its operation relies on the appointment of a managing insurer, who plays a key role in coordination and compensation.

Main steps

The management of a claim under the IRSI convention includes several essential phases:

1. Coordination of leak detection: The managing insurer is responsible for identifying the cause of the claim to assign responsibilities.
2. Damage assessment: An appraisal may be commissioned to estimate repair costs.
3. Compensation of involved parties: The managing insurer covers compensation according to established rules.

Example: A water leak damages the ceiling of a neighbor’s apartment. The managing insurer organizes leak detection to determine the origin, assesses necessary repairs, and compensates both parties.

Compensation tiers

The IRSI convention divides claims into two tiers, based on the damage amount. This classification allows adapting support to each case’s specific needs.

Tier 1:

• For small claims, expertise is not necessary.
• The managing insurer directly compensates involved parties without recourse to other insurers.

Tier 2:

• An expertise is mandatory to evaluate damages.
• The managing insurer may seek reimbursement from other insurers based on responsibilities.

Role of the managing insurer

The managing insurer is appointed based on the origin of the claim. It becomes the primary contact and coordinates all steps.

Responsibility illustration:

1. Leak in a rented property: If a non-destructive leak comes from a tenant’s apartment, their home insurance handles the claim.
2. Destructive leak: If walls or partitions need to be destroyed to locate the leak, the owner’s insurer covers the search and repairs.
3. In common areas: When the leak originates from shared spaces (hallways, technical corridors, etc.), the co-ownership’s insurance handles costs related to detection and repairs.

🔍 Leak detection and support

The leak detection plays a crucial role in managing water damages. It helps identify the leak’s origin, limit material damage, and assign responsibilities. Depending on the situation, leak detection can be non-destructive or require temporary demolitions.

Types of leak detection

1. Non-destructive detection:

   • Involves non-invasive methods like thermal cameras, moisture sensors, or ultrasound tools.
   • These techniques locate leaks without damaging building structures.

2. Destructive detection:

   • Necessary when work is required to access the leak area, which may include demolishing partitions, perforating walls, or removing coverings.
   • This type of detection incurs additional costs for restoration.

Responsibility sharing and support

The IRSI convention determines which insurer is responsible for leak detection, based on the origin and nature of the claim:

Responsibility illustration

• Case of a rented property:
  If a leak occurs in a rented apartment and does not require destruction, the tenant’s home insurance handles the detection.

• Destructive leak case:
  If walls or partitions need to be opened to locate the leak, the owner’s insurer covers search and repair costs.

• Common areas case:
  When the leak comes from shared spaces (hallways, technical ducts, etc.), the co-ownership’s insurance covers detection and restoration costs.

Why is leak detection crucial?

A quick and effective search helps to:

• Limit repair costs.
• Prevent damage escalation, such as mold growth.
• Reduce disputes between parties by clearly identifying the leak’s origin.

🔄 Differences with previous conventions

The implementation of the IRSI convention in June 2018 marked a turning point in managing claims related to water damages and fires. It replaced two main conventions: CIDRE and CIDE-COP, modernizing rules and extending the scope. Here is an overview of the main differences.

The CIDRE convention: a limited framework

The CIDRE (Direct Indemnification and Waiver of Recourse) convention was exclusively dedicated to water damages. It had several limitations:

• Low compensation ceilings: €1,600 excluding tax for material damages and €800 excluding tax for immaterial damages.
• Exclusion of leak detection, leading to unclaimed costs.
• Limited to minor claims, with little flexibility for complex cases.

The CIDE-COP convention: specific to co-ownerships

The CIDE-COP, signed in 1983, complemented CIDRE for claims in co-ownerships. It applied to water damages exceeding CIDRE limits but did not cover fires or more complex claims.

Improvements brought by the IRSI convention

The IRSI convention unified and replaced these two old conventions, with more comprehensive rules adapted to current needs:

The main advantages of the IRSI convention

1. Broader scope: The IRSI convention covers both water damages and fires, unlike CIDRE and CIDE-COP.
2. Increased compensation ceilings: With up to €5,000 excluding tax, it supports larger claims.
3. Integration of leak detection: IRSI includes leak detection costs, whether destructive or not, reducing disputes between insurers and policyholders.
4. Designation of a managing insurer: This improves coordination and speeds up reimbursement times.

Practical example

• Under the CIDRE convention: If a water leak causes damages of €2,000 excluding tax in an apartment and requires leak detection, the costs are not covered, and support is limited to €1,600 excluding tax.
• Under the IRSI convention: For the same claim, leak detection is included, and the €5,000 excluding tax ceiling allows full compensation.

🛠️ Prevention of claims: Good practices

Claim prevention, especially for water damages, relies on simple actions and innovative technologies. Following these good practices reduces the risk of leaks and potential damages.

Simple actions to avoid damages

Adopting daily habits can effectively prevent water leaks and their consequences. Here are essential habits:

1. Properly closing faucets: A simple oversight can lead to a constant drip, causing overuse of water and potential infiltrations.
2. Regularly check joints: Faucet and pipe joints wear over time. Monitoring and replacing them at the first signs of wear can prevent unexpected leaks.
3. Monitor your water consumption: A sudden increase in your bill may indicate a leak. Paying attention to anomalies helps quickly detect issues.

Innovations for detection

Technological advances now offer effective tools for preventing major damages by detecting leaks early:

1. Wireless water detectors:

   • Placed near risky installations like water heaters, washing machines, or pipes.
   • In case of a leak, they emit an alert, enabling quick intervention.

2. Real-time monitoring systems:

   • Continuously measure your water consumption.
   • An alert is sent in case of abnormal variation, helping identify invisible problems before they cause significant damage.

Why adopt these practices?

• Preventing water damage limits material damages and protects your installations.
• Increased vigilance avoids health risks, such as mold growth.
• Modern tools help reduce water loss, resulting in savings on your bills.

📘 Additional documentation

To better understand the specifics of the IRSI convention, several resources are available. Here are some suggestions to deepen your knowledge:

1. Official IRSI text:

   • You can access the full document on the website of the French Federation of Insurance (FFA). This text details insurer obligations, application criteria, and procedures for each claim.
   • It also includes concrete examples and explanatory diagrams for clearer understanding of the rules.

2. Practical guides from insurers:

   • Many insurance companies publish simplified guides explaining how the IRSI convention works for their clients. These documents focus on declaration steps, leak detection, and claim types covered.
   • These guides are often supplemented with video tutorials or infographics for easier understanding.

3. Experience feedback:

   • Specialized blogs or forums share testimonies from insured persons who have used the IRSI convention. These stories offer practical insights into its advantages and limitations.

🔑 Key points to remember

In summary, the IRSI convention relies on three fundamental axes that simplify claims management:

1. Adopt good practices:

   • An effective prevention limits risks of claims. Simple gestures, like checking joints or monitoring water consumption, can prevent major damages.
   • The use of modern technologies, such as leak detectors, also helps identify anomalies quickly.

2. Understand your responsibilities:

   • Each involved party (tenant, owner, co-ownership) has a role. Knowing responsibilities helps avoid conflicts and facilitates procedures with insurers.
   • For example, a tenant must quickly report a claim to their insurer, while a non-occupant owner must organize leak detection in case of destructive damage.

3. Collaborate with your insurer:

   • Prompt and transparent communication with your insurer is vital to ensure timely compensation. Providing clear and precise information speeds up the process.

💬 Frequently asked questions about the IRSI convention

1. Who pays for repairs in the event of water damage?
The management of repair costs depends on the cause of the claim:

• If the claim originates from a rented property, the tenant’s home insurance manages the process.
• For a destructive leak, the non-occupant owner’s insurer covers the costs.
• In case of damages in shared spaces, the co-ownership’s insurance intervenes.

2. Can I refuse the application of the IRSI convention?
Yes, an insured person can refuse the application. To do so:

• Notify your insurer that you do not wish for the claim to be handled under this convention.
• Your case will then be managed according to general law, where you may need to pursue direct recourse against the responsible insurer.

3. Which claims are never covered by the IRSI convention?
Some situations are outside the scope of the IRSI convention, such as:

• Infiltrations through facades or buried walls.
• Natural phenomena, like storms, hail, or floods.
• Claims related to humidity or condensation without direct link to water damage.

🏢 Need personalized assistance?

If you encounter difficulties or have specific questions regarding a claim, here are some ways to get help:

1. Contact your insurer:

   • Explain your situation and ask all necessary questions. Most companies offer personalized advice to guide insured persons.

2. Consult an insurance expert:

   • In case of dispute or disagreement, an independent expert can analyze your case and assist in obtaining fair compensation.

3. Co-ownership’s syndic:

   • If the claim involves shared areas, your syndic can intervene as a mediator between involved insurers.

📄 Download the IRSI Convention

You can view and download the IRSI convention in PDF format for more details on its rules and procedures. Click here to access the document