Home insurance rises depend your area of France: Where is most affected?

Home insurance costs in France are set to rise by almost 10% this year, but not all areas will be affected to the same extent, a new report has found.

The study by ‘alternative’ insurer Leocare found that the sharpest rises are expected in Nice (for flats), and in Marseille (for houses), reported BFM Business and BFMTV.

The study also found that home insurance rates in France's 10 biggest cities will rise by an average of 9.5% for houses, and 10% for flats.

Which cities are seeing the highest insurance rises?

Flats

The report found that insurance prices for flats are rising most in: 

• Nice: 12% rise compared to 2024

• Toulouse and Bordeaux: 11% rise

• Lille and Rennes: 10%

• Lyon and Marseille: 9.5%

• Montpellier: 9%

• Strasbourg and Paris: 8.5%

For those who pay insurance premiums monthly, the report found that policyholders can expect to pay €26 a month in Nice, €25 in Marseille, €24 in Montpellier and Paris, compared to just €16 in Rennes.

Houses

The report found similar trends for house insurance.

• Marseille: 11.5% rise compared to 2024

• Strasbourg: 10.5% rise

• Lille and Paris: 10%

• Nice, Rennes and Montpellier: 9.5%,

• Lyon, Bordeaux and Toulouse: Up by 8.5%

Again, when paying monthly, rates are €58 on average in Paris, €57 in Marseille, €55 in Nice and Montpellier, in contrast to €35 in Rennes.

Even sharper rise over the past three years

When considered over the past three years, the increases are even steeper, the report said, with rates having increased by 20.5% for houses and 21% for flats between 2022 and 2025.

For this time period, the highest increases were seen in:

• Nice and Toulouse (for flats): Up 23%

• Bordeaux (for flats): Up 22.5%

• Marseille (for houses): 22.5%

• Strasbourg, Lille and Nice (for houses): 21.5%.

Why have prices risen so much?

Leocare said that several factors are to blame, including: 

• The increase in bad weather and natural disasters linked to global warming

• Increased burglaries in some regions 

• The rising cost of building work, increased by the cost of raw materials

• The age and deterioration of building stock.

Are prices set to stabilise or fall? 

Leocare does not believe prices will improve any time soon, saying it believes that rates will continue to rise every year, due to increased climate change disasters and increasingly intense weather events.

How can I reduce costs?

The company said that the ‘mutualisation’ of insurance costs, particularly for multi-home buildings and flats, can help.

It warned that too much ‘individualism’ in insurance can lead to higher prices, citing the example of the US where home insurance typically costs around €2,000 a year and in some cases much more in higher-risk areas. 

In France, those who live in areas considered to be high-risk can often pool their home insurance policies in a bid to reduce the cost burden on individual households.

Similarly, many insurance companies tend to use funds collected from high-risk, high-value or high-population areas (such as Paris) to subsidise the cost of policies in other areas, which can lead to overall lower costs in some zones, said Leocare.