Multi-risk home insurance: prices are still rising

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Property purchases, or at least real estate transactions, have soared following the strict confinements of 2020. This has put the question of home insurance back at the center of the concerns of many French people. But, isn’t it paradoxical to see that the price of multi-risk insurance always increases?

The reasons for such a price increase

Multi-risk housing contracts (MRH) saw their price jump by 0.9% between 2019 and 2020 and are likely to rise further from 1.5 to 2% in 2021. How to explain this increase?

  • Buying second homes exploded: INSEE listed 3.6 million second homes in the territory in 2020. Since houses are more expensive to insure than an apartment and more difficult to maintain remotely, this has an impact on the price of insurance.
  • The cost of repairs related to claims play a lot. It is no longer so much about burglaries or building damage but more about damage caused by natural disasters or situations triggered by the weather (fires, storms, floods…). The costs would amount to approximately 1.35 billion euros for the past year.
  • Price fluctuation is remarkable from one region to another. Multi-risk home insurance in Lille is 156 euros cheaper than its equivalent in Montpellier, for example.
Insurers have an obligation to base their prices on the FFB (French Building Federation) Index, itself indexed to the cost price of a standard building in Paris… However, this price obviously rises every years !

This is the right time to compare housing contracts!

Do not hesitate any longer if you think that you are suffering from an excessive price increase on your housing contract. A comparator, like LeLynx.fr, can help you see more clearly about your needs as an insured and save money on your bill!

4 thoughts on “Multi-risk home insurance: prices are still rising”

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