Home insurance premiums to rise

WEATHER disasters are a key factor behind the rising cost of home insurance policies next year.

The effects of floods, hail and storms on claims were pushing companies to raise their prices, an insurance director told the financial newspaper Les Echos.

“Coming back to back, these events, while not the focus of public attention, are going to cost the market nearly as much as the Xynthia hurricane of 2010,” said the director general of Axa, Jacques de Peretti.

Axa has one of the largest rises next year (4.9%) according to a survey carried out by Les Echos. Elsewhere the rises are Maaf 2,5%, Maif (3%), Macif (3,5%) and Swiss Life (4% - 5%).

The costs of car insurance should stay reasonably stable, with rises between 0-2.8%.

One firm, Maaf, is even offering a 5% reimbursement on payments made last year.

Photo: Nantes flood 2011, by Julien Lozelli