Like most of the French, you have a home insurance policy for your home, but you worry that you still receive your timeline and see your contribution increase. We explain to you in this article what are the factors involved in this increase in tariff.
The increase due to claims
The first cause of the increase in insurance premiums is often due to the number of claims that have been compensated by the insurance over the course of the year. In fact, if your insurer has seen an increase in the number of claims, he passed these costs on the contribution of the insured in the following year.
For example, if in the course of the year 2022 there are a lot of fires or floods in France, then it may be that your home insurance increases next year. It should be noted that there is an increase in the price of home insurance for about 10 years, an increase that is located between 16% and 40%.
These rates should be compared with the annual inflation rate.
The increase of the mandatory charges
Home insurance does not include VAT (value added tax) in its contributions, but it comes in taxes and mandatory contributions owed to the State.
These taxes include :
- 5,90€ per contract, taken for the guarantee Fund for victims of acts of terrorism
- 30% tax
- 11.6 per cent for the legal Protection
- Between 7% and 30% for the fire
Sources : economie.gouv.fr
The increase in the cost of construction
Insurance companies rely on the index FFB (Fédération Française du Bâtiment), which takes into account changes in the cost of construction materials, as well as changes in the cost of the labor of the building trades.
Indeed, these costs are passed on to the invoices of the different repairs after a loss, what causes costs too heavy for the insurance. That is why, they can also affect the contribution of the insured.
The annual increase of Companies
The rules allow the insurance companies to increase their fees in January of each year. However, the law of Châtel requires them to inform the insured at least 15 days before the date of termination of their contract. This information is sent by mail via your notice of maturity.
Changes in your personal situation
If your personal circumstances change, then it may be a factor to increase your home insurance.
A change of domicile is a cause of the increase or decrease in the cost of your home insurance. For example, if you finish your studies and leave the studio for a 3-room apartment or a house, then your contribution will increase. In fact, the surface of your accommodation is a crucial factor in calculating your rate, the more your accommodation will be great addition your contribution will be high.
The new location of your home will also influence your premium. If you live in a ” risk area “, which would be, for example, is more conducive to suffer natural disasters, then your insurer may apply to an increase in your insurance, since the risk will be higher than if you live in a more secure area.
You change of warranties
Your profile insured may also change during the course of your life. If you want to change your level of coverage, so the price of your insurance will vary in the same way as for Auto insurance. If you want to add safeguards to your contract to be better covered, you’ll see your membership fee increase.
If you are experiencing regular losses in your home, your insurer may also increase your insurance premium
How to reduce the cost of their home insurance
You can lower the cost of your home insurance starting from compare offers from different companies on the site’s comparison online. Pay, however, attention to the coverage you receive and the guarantees included in your insurance contract.
If you have a limited budget, then choose basic coverage at a small price. If on the other hand, you are looking to be well covered, so choose more safeguards when setting up your quote. In effect, the price will be higher but you will be better compensated in the event of a disaster.