Why home insurance costs are expected to rise in France next year

An increase in the number of natural disasters and weather-related damage claims is contributing to a hike in home insurance costs in France, which are expected to continue rising in the coming years. 

Insurance costs related to natural disasters – storms, floods, droughts, etc – amounted to €6.5 billion in 2023, following a cataclysmic 2022 where payouts reached €10.6 billion. 

This was partly due to the widespread droughts in 2022 and heavy flooding in 2023, especially in the north of France near Calais.

Next year will see an increase in the surcharge of the fonds d’indemnisation des catastrophes naturelles (a natural disaster compensation fund) from 12% to 20% on insurance contracts.

This will likely increase fees by around €20 per year on average, however insurers may choose to increase premiums further in light of the level of natural disasters France is facing.

Natural disasters are not the only thing to cause premiums to rise however; as inflation has increased the cost of labour and materials for repairs.

Costs differ between regions

Home insurance premiums increased by an average of 7.2% between the start of 2024 and September, reported insurance comparison site Assurland.

It means the average home insurance policy in France is now €243. However, average insurance costs for a house are even higher, at €297 (with policies for flats being cheaper). 

At a regional level, areas in the south face higher averages, as they are more often hit by storms, flooding and increasingly, droughts. 

In Provence-Alpes-Côte-d'Azur, insurance averages are €280, nearly €40 higher than national levels. 

Brittany, despite facing increasing levels of flooding, has the lowest average costs, a €198. 

Read more: Insurers refuse to cover properties in ‘flood risk’ Brittany town

€143 billion on insurance claims

Up to €143 billion will be spent on insurance claims for natural disasters between 2020 and 2050 in France, reports insurance association FranceAssureurs.

Payouts across this time would be principally due to river and coastal flooding – at a cost of €54 billion – up 87% from levels observed between 1989 and 2019.

Claims related to storm damage are also set to increase to €46 billion (up 46% from levels observed between 1989 and 2019). 

Damage claims from droughts, an increasingly common problem in areas where homes are built on clay soil, are expected to skyrocket by 215%, costing €43 billion. 

Nearly 50% of all properties in France are threatened by damage from droughts, with shrinking and swelling soils causing cracks to appear in properties (both on surfaces and foundational structures). 

In the south, the risk increases significantly – 90% of properties in the Gers department are threatened by such damage during drought season.

Read more: Official maps to show where homes are most at risk of climate damage in France