The price of home insurance is soaring, in part because of the increased risk of natural disasters. If insurers recognize that they are increasing their contributions, the so-called “cat nat” contribution is set by the State, which has decided to increase it from January 1, 2025.
Insurance prices will see a historic increase this year. This is what the survey just published by the online insurer Leocare shows. The price of home insurance is expected to increase by 8 to 12% in 2025. Nationally, the average cost will peak between 250 and 260 euros per year.
The reason? Partly due to the increase in the contribution linked to the protection regime against natural disasters, “cat nat”, set by the State. It was 25 euros on average but has increased by 15 euros since January 1, 2025, or 40 euros. “The rate went from 12 to 20%, which leads to an increase in the contribution from 7 to 8%,” explains Laëticia, insurer, at RMC.
“We are increasing insurance because climate disasters are becoming more and more regular,” explains Maël Bernier, spokesperson for Meilleurtaux.com.
“The amount of contributions levied on individual and business contracts (around 2 billion euros in total in 2023), is distributed 50-50 between insurers and the Central Reinsurance Fund (CCR), a company owned by the “State responsible for managing the cat nat regime” explained Libération in December.
Increase in home insurance prices: scandalous? – 01/22
In detail, if we focus on houses, it is in Marseille, Lille, Nice and Strasbourg that home insurance has increased the most, around 10% over one year and more than 20% over 3 years. For apartments, the increase is also impressive. It is Nice which rises to the top of the ranking, ahead of Toulouse, Bordeaux and Lille: 10 to 12% over one year compared to 21 to 23% over 3 years.
There is also the aging of the French housing stock, with cracks causing an increase in the cost of repairs. This phenomenon thus cost the cat nat regime 3.5 billion euros in 2022, then around 700 million last year according to the balance sheet of the CCR (Central Reinsurance Fund). “Home insurance capital is indexed each year according to the FFB index,” recalls Laëticia.
-Those who live in flooded areas pay the highest price
Ruben, RMC auditor, is not upset: while he lives on the Côte d’Opale, an area affected by floods this year, his accommodation is located in “relief, on the heights”, which according to him reduces the flood risks. Despite everything, given the geographical area where he is located, his confidence has increased significantly. “Insurance lacks clarity. We don’t know what we pay. The State should put safeguards in place for insurers, they are not to be pitied,” he denounced on the microphone by Estelle Midi.
The Leocare study also highlights the fact that there is an increase in burglaries and acts of vandalism weigh heavily in the balance. To save money, it is therefore possible to look at your contract in detail and adjust the guarantees, compensation ceilings and deductibles according to your real needs.
Evaluate your real estate capital carefully
“There is no bonus for loyalty, there is every interest in comparing insurance, even if you have been with the same insurer for 10 years. Mom and dad’s insurer is not the right insurer for you when you settle in. You have to compare, adjust. There are differences for equivalent guarantees, insurers define the risks but do not necessarily have the same targets,” explains Maël Bernier, spokesperson for Meilleurtaux.com.
“Some prefer price to guarantees,” warns Laëticia, insurer
Also, when the insurance company offers to insure your real estate capital up to 30,000; 20,000 or 10,000 €, it is useful to estimate it carefully. “If you live in a 3-room apartment with Ikea furniture,” there is no need to choose a deductible that is too high, according to Maël Bernier.
Emmanuel Lechypre and Léo Manson
