Why your home insurance in France is likely to increase
Climate change-related claims cost more than €5 billion last year
Climate change claims are causing premiums to rise “without any improvement in coverage or greater transparency for policyholders”, said UFC-Que Choisir
William Potter/Shutterstock
Home insurance rates in France are expected to continue rising due to the effects of climate change, a consumer association has warned. It comes after rates increased by 7% last year.
The predicted increase is for between 8-11%, consumer association UFC-Que Choisir has said, as it publishes a warning of “a system under strain”.
It has called for “an urgent reform of the insurance model” faced with rising tension from climate change.
Climate hazards
Increases in premiums are largely due to an increase in claims due to climate hazards, UFC-Que Choisir has stated, including flooding, drought, storms, and wildfires.
Overall, more than 4.6 million insurance claims were settled in 2024 (totalling €8 billion), and of this, more than €5 billion was for claims related to climate change.
This included damage from storms, hail, floods, and droughts, with 2024 the “ninth most expensive year since the CatNat scheme was created in 1982”, said UFC-Que Choisir.
‘CatNat’ refers to ‘catastrophe naturelle’, which is the natural disaster clause under which most climate change damage claims are filed.
Almost 98% of home insurance policies in France have the CatNat clause, which comes into force if and when (and only then) the government officially declares an event to be a catastrophe naturelle.
Significant climate change events over the past year include:
Increased claims have caused a rise on average from €25 to €42 for the natural disaster coverage part of home insurance policies, with policyholders being required to pay more for less coverage. On January 1, 2025, the CatNat surcharge increased from 12% to 20%.
Overall, premiums rose by 7.2% in 2024, rising from €279 on average to €299 excluding TVA. Price increases for 2025 are expected to reach 8-11%, “without any improvement in coverage or greater transparency for policyholders”, said UFC-Que Choisir.
“[Climate] claims are becoming increasingly frequent [and] are putting a strain on the insurance system and weakening consumers,” said UFC-Que Choisir.
Uninsurable areas?
“More and more, you will need to be very well covered,” said Gregory Caret, director of the association’s Consumer Observatory, to BFMTV. “An insurer can refuse to insure you if you are in an at-risk zone, and then it is harder to find a [good] contract.”
Premiums can rise more for claims for climate-related damage that is not recognised as a CatNat, UFC-Que Choisir warned, and there has also been a rise in policy claims that include “exclusion clauses [that are] often vague and invoked for ‘lack of maintenance’”.
Similarly, many policies now say that “outbuildings are not covered…depriving policyholders of compensation despite obvious damage”, it adds.
Insurance premiums can vary considerably depending on the area, with many homeowners in some at-risk regions struggling to find affordable policies, the association said. “UFC-Que Choisir is therefore alerting people to the emergence of potentially uninsurable areas,” it warned.
Ambitious reform needed
Overall, the association is calling for an ‘ambitious reform’ of the insurance system to protect the public, including:
A requirement for insurers operating nationally to offer home insurance to all households, regardless of where they live
A standardised information sheet to make it easy to compare home insurance offers
The publication by insurers of how often they pay out for home insurance
A reduction in compensation times and standardisation of post-claim assessments
Systematic information on climate and natural risks provided to all buyers as well as all tenants.
