French citizens can no longer remain blind to climate change. The effects are thus being felt more and more, especially during this summer period when temperatures reach record levels. Other consequences are also to be expected on less expected points, particularly with regard to home insurance. Premiums should experience significant increases with increasing risk factors. So you have to prepare for it.
A bleak outlook for policyholders
The measures that are currently being taken to protect the planet seem to be quite encouraging, but not yet sufficient. Earth’s temperatures and the frequency of natural disasters are expected to continue to rise critically over the coming decades.
The main effect of this will be to increase the risk of disasters that households may encounter. Insurance companies must obviously adapt to the situation and consider gradually modulating their rates.
Thus, by 2050, the cost of insuring your home should be multiplied by six according to studies carried out by the ACPR or Prudential Control and Resolution Authorities. Fires, floods or even drought and the shrinkage-swelling of clay soils are scourges that are expensive. The foundations are weakening, the houses are more vulnerable to fires, etc. However, protecting against them becomes more and more imperative with the frequency of these events which continue to increase. It is therefore normal that the premiums also go up.
What could be the bill for the owners?
Today, the victims are already quite numerous. The repairs to be made on cracks or the consolidation of the foundations involve expenses ranging from several hundred thousand euros (the price of a house). To offset its costs, insurers absolutely need more resources.
The forecasts thus speak of 2.8% to 3.7% annual increase in the amount of premiums on each contract, for the next 30 years. This represents a total increase of 130 to 200% by 2050. A contribution of €216 would then increase to €927.
Measures must obviously be taken to avoid such a situation. The States of the world, especially the most polluting ones, must agree on a more relevant global climate policy. Better protecting the environment remains the main solution so that home insurance contracts do not become unaffordable when they are currently compulsory.