Home insurance increases expected in France after floods
Compensation costs for the recent storms and flooding across the west and south-west is estimated to be in the billions of euros
A series of heavy storms have struck in swift succession since December, bringing major flooding to the west of France (photographed in Redon in 2025)
sebastien Baussais / Alamy Stock Photo
Home insurance premiums in France are expected to rise significantly in coming years as the ongoing floods across the west and south-west push compensation costs into the billions of euros.
Several departments remain on high alert for flooding on February 22 with the state forecaster Météo France and the government flood monitoring service Vigicrues.
Parts of Charente-Maritime, Gironde, Lot-et-Garonne and Maine-et-Loire have faced major river overflows, while coastal areas were also placed under wave-submersion warnings.
It follows a series of heavy storms that have struck in swift succession since December, bringing major flooding to the west of France.
The full cost of damage from the recent storms and floods is not yet known but early estimates suggest insured losses could reach between €2.5bn and €3bn.
For Storm Nils alone, which affected around 250,000 households, the bill has already reached €1bn, according to the Caisse centrale de réassurance, the state-backed reinsurer that underpins France’s natural disaster system.
Flooding is among the most expensive climate risks for insurers.
Industry body France Assureurs estimates average compensation of between €10,000 and €14,000 per affected household, reflecting damage to buildings, fixtures and contents.
8-11% forecast may be overtaken
In December 2025, consumer group UFC-Que Choisir forecast average home insurance premium increases of 8% to 11% in 2026.
Insurers maintain that they do not pass on the full cost of claims to policyholders. Nevertheless, pricing remains the principal adjustment lever in a system under growing strain.
France’s regime for natural disasters, known as CatNat, is based on national solidarity: 98% of policyholders pay a fixed additional premium to fund compensation for officially recognised natural disasters, regardless of their own home’s exposure.
That surcharge was increased from 12% to 20% on home insurance contracts from January 1, 2025, raising annual bills by an average of around €16 per household. The aim was to restore the finances of the reinsurance system after successive years of heavy losses.
Since 1982, the CatNat regime has paid out more than €53bn in compensation, with floods and drought accounting for the vast majority of claims. Recent winters, including severe flooding in Pas-de-Calais in 2023-2024, have underscored the upward trend in climate-related losses.
Nearly half of communes at risk
France is particularly vulnerable to flooding, with around 47% of communes containing designated flood-risk zones, affecting close to 17 million residents.
Regulators have warned that insurance premiums could double by 2050 if current climate trajectories continue.
There are also concerns about “insurance deserts” emerging in the most exposed areas, where homes could be turned down for insurance - as recently happened to a British couple.
While home insurance is compulsory for tenants and strongly recommended for owners, some households in high-risk zones already face far higher deductibles or difficulties securing cover.
In extreme cases, state insurance regulator Le Bureau central de tarification, can require an insurer to provide basic cover, although at a potentially higher cost.
