+2% on average in 2021. This is the verdict of our comparator on the prices of multi-risk home insurance (MRH). Be careful, the price differences go from simple to double according to the contracts and cities of the territory. Explanations and solutions.
2021 marks a new turn of the screw on the prices of multi-risk home insurance (MRH). However, we could have expected price stability after a year 2020 which will have seen the number of claims (in particular burglaries and fires) fall by 4%, according to the French Insurance Federation. This is not the case with the 2021 rates updated in our home insurance comparator. Based on a study of the 20 major insurers on the market, on 6 household profiles and 5 cities, the increase in premiums is 2% on average. This is a fundamental movement, since 80% of insurers have increased their rates this year. The reasons ? Less numerous, the claims would however be more expensive to compensate, in particular following natural disasters (storms, droughts, floods, etc.). A bill estimated between 1.35 and 1.65 billion euros for 2020 by the ACPR, the policeman of the financial market. That’s not all: insurers also set their rates on the index of the French Building Federation, which determines the cost price of an average building in Paris, an index that continues to climb every quarter.
An inflationary sector
Deja vu, one might say. Already in 2018 and 2019, the contributions had taken 2% each time. “Between 2005 and 2019, the turnover of the property and building insurance sector grew by more than 80%, from 6 billion to 11 billion annually.observes Gregory Caret, director of the Observatory of consumption at What to choose. At the same time, the rise in consumer goods prices will have been 18%. This sector of HRM is therefore clearly inflationary. If the increase in claims and especially in repair costs partly explains the situation, we must also point the finger at the weight of contract management costs as well as customer acquisition policies by insurers. » Today, out of €100 of contributions, 55% would go to the insured via reimbursements, the balance (45%) being used to constitute provisions and above all to pay the bill for general expenses of companies and other mutual insurance companies. Translation: insurers take care of their accounting ratio by increasing rates without great risk of losing their customers, given the inertia of this market.
The big price difference
Is it then justified to always pay more for your HRM? This question, each inhabitant should one day take up. It’s time to put this insurance under the fire of the competition. How? ‘Or’ What ? First step, by locating the price level of his current contract. Not easy in a very dense market. The good reflex will be to use our comparator, independent and listing 26 key insurers on the market. In a few clicks, you will obtain the prices of the main contracts of the place according to the location of the property. Plus an uncompromising judgment on product warranties. The results are astounding, the prices – with equivalent guarantees – make the big difference, ranging from simple to double or even more (see box). We have known for a long time that it was more expensive to insure a property in the east than in the west of the territory. We are now discovering that within the same geographical area, price dispersion is also the rule. Impossible under these conditions to draw up the classification of the best contracts of the market, it is well case by case that it is necessary to do.
Do not hesitate to change HRM
This hunt for good HRM must be accompanied by a review of two misconceptions among policyholders. One, loyalty to your insurer doesn’t really pay off. Long-time customers do not benefit from preferential rates, it is sometimes even the opposite. Two, it is not complicated to trade your HRM for another. After the first year, it is possible to terminate your contract in accordance with article L. 113-15-2 of the Insurance Code. And this at any time, without waiting for the anniversary date. Termination will be effective one month after the insurer has been informed, “by letter or any other durable medium”. The insurer with whom you intend to take out your new contract can sometimes take over the process, one less worry. Only the use of this freedom seems, ultimately, to be able to limit price inflation in this market.
MRH: the price yoyo by example
A household owner insures their 5-room house in Arras or Lille. The cheapest offer found in our comparator is that of the Mutuelle de Poitiers assurance, at €240 per year. Attention, the guarantees of compensation and assistance are deemed insufficient. And the contracts of Crédit Mutuel (€358), Crédit Agricole (€360), Generali (€399), GMF (€462) or even Carrefour, the most expensive offer with €510 per year, do not present not really better guarantees despite a price of 50 to 112% higher! The comparator allows you to perform a sort according to different criteria. Conclusion: the HRMs with the best value for money are, in this example, at Groupama (€371) and La Banque Postale (€374).
A couple rents a three-room apartment in Montpellier. On the price side, for minimalist guarantees, we run from €179 at Direct insurance to €396 at Allianz, the big difference therefore. For a contract with the best level of guarantees (insurers often speak of the “comfort” formula), it is a little tighter. It thus costs €246 at Maif or €286 at Caisse d’Epargne, which in this case prove to be the most convincing offers, but €311 at Groupama or €392 at La Banque Postale, two brands however well positioned in the previous example. Proof that the HRM of an insurer, attractive in one region of the country, is not necessarily so elsewhere.