The City of Montargis itself insures the risk linked to urban riots

The City of Montargis itself insures the risk linked to urban riots
The City of Montargis itself insures the risk linked to urban riots

For a municipality, getting insurance has become a real financial headache. Faced with the multiplication of climatic events, relations between local authorities and the insurance world have deteriorated. Between the risks of bad weather, floods, heat waves, the social risk which was illustrated with the yellow vests and more recently urban violencesome municipalities are “failing” and therefore giving up insurance, such as Denain (North) since January 1, 2024.

This is not the case of Montargis the commune which was the most affected by the wave of violence last summer. But the City had to review its insurance contract. A fortnight ago, Benoît Digeon addressed the issue with Gabriel Attal . The Les Républicains (LR) mayor of Montargis was invited to Matignon, with other elected officials from towns which also experienced significant damage last June. The City of Eastern Loiret had to review part of its insurance contract.

Benoît Digeon was received at Matignon

From now on Montargis chose to insure “itself” for the risk linked to these riotsbecause the franchise price really “exploded”, explains Benoît Digeon. “In July 2023, we received a letter from our insurer, SMACL (the mutual society of local authorities) stating that it continued to insure this risk, but the deductible which was 7,500 euros increased to two million “Euros. It was simply not possible. But we kept this insurance because everything else was quite interesting, we would have lost a lot of money to change companies.”

“If tomorrow there is a riot, we will take out a loan”

From now on, the city has chosen to ensure “itself” for this risk linked to these riots. “We are doing like large cities in the West, Rennes or Nantes, which have experienced demonstrations in the past around Notre Dame-des-Landes, and where the city centers have been seriously damaged. But after two or three times, the insurance company lets you go, it tells you to look elsewhere and there is no Elsewhere, it’s in your wallet.

Benoît Digeon continues, “If tomorrow we have a new riot and we have a million and a half or even two million euros in damage, well we will pay, we will take out a loan and then the population will pay. There is a moment when it is better to stay poorly insured, than being poorly insured and very expensive too.”

60 municipal buildings remain insured

The City still remains insured for all other damages., fires, water damage, civil liability. And then there is all schools, nurseries, gymnasiums, town hall and technical buildings which are insured, specifies Benoît Digeon. “And we didn’t have that much damage last year, it was mainly the private domain part that was affected in Montargis. This means that we do not have the same problems in terms of franchises, and insurance depending on the city.

On his side the government aware of the responses expected by local authorities, commissioned a report from the mayor of Vesoul Alain Chrétien and the former CEO of Groupama Jean-Yves Dagès. This mission will soon deliver its conclusions after around forty hearings and 400 communities which were heard between January and March. The Prime Minister promised strong decisions on this subject of municipal access to insurance in the coming weeks.



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