Climate change: why should the price of your home insurance soar in Occitania and PACA?

The increasingly frequent meteorological hazards frighten insurers. According to a study by the Prudential Control and Resolution Authority of the Banque de France, a sharp increase in home insurance premiums is to be expected in the medium and long term, and in particular in the sectors most affected by natural disasters.

Bad news if you live in the south of France. The cost of home insurance could jump in the coming years. In any case, this is what a recent study by the Prudential Control and Resolution Authority (ACPR) of the Banque de France indicates.

PACA and Occitanie particularly targeted

The reason for these projections: the increase in temperatures for several years, the harmful effects of drought on housing but also the increasingly frequent climatic hazards (storms, Cévennes episodes, etc.).

According to the insurance comparator Assurland, “the resurgence and violence of bad weather mean that home insurance premiums are on the rise, especially in the South-East regions.” Moneyvox also indicates increases of 33.3% in PACA and 40.6% in Occitania in the coming years.

Costly natural hazards

But the worst is probably to come in the longer term. Still according to Assurland, “the most important disaster to come will be drought. It should be very expensive for insurers in the years to come. A cost that they will pass on to the price of the contracts”, estimates the comparator, basing itself on the study of the APCR which underlines that the prices of the premiums for home insurance could jump by “150 to 200% by 2050″.

It must be said that the damage linked to climate change weighs on insurers: natural disasters would have cost them 1.7 billion euros between 2016 and 2020, ie one billion more than over the period 2011-2015.

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