Rising Home Insurance Premiums in France Due to Flood Risks

Home insurance premiums in France are set to rise significantly due to recent floods in the western and southwestern regions. As of February 22, several areas remain on high alert according to Météo France and Vigicrues. Key regions affected include Charente-Maritime, Gironde, Lot-et-Garonne, and Maine-et-Loire, with ongoing warnings for coastal areas.

The storms, which began in December, have caused persistent flooding and substantial insured losses, estimated between €2.5 billion and €3 billion. Notably, Storm Nils alone led to costs reaching €1 billion, affecting approximately 250,000 households, as reported by Caisse centrale de réassurance. Floods are one of the most expensive climate risks for insurers, with France Assureurs estimating claims per household ranging from €10,000 to €14,000.

Consumer group UFC-Que Choisir predicts home insurance premiums will increase by 8% to 11% in 2026. While insurers claim they do not pass the full cost of claims onto policyholders, pricing adjustments are necessary to address mounting pressures. Under France's natural disaster scheme, known as CatNat, policyholders contribute a fixed premium for disaster compensation, a surcharge that rose from 12% to 20% on January 1, 2025. This change aims to stabilize the reinsurance system amid consecutive years of significant claims.

Since 1982, CatNat has disbursed over €53 billion, mainly for floods and droughts. Recent severe winter flooding in Pas-de-Calais underscores the rising trend of climate-induced losses. Currently, 47% of French communes are considered flood-risk zones, affecting nearly 17 million people. Regulatory bodies warn that if climate patterns persist, insurance premiums could double by 2050.

In high-risk areas, there is a danger of "insurance deserts" forming, making coverage hard to obtain. This situation is exemplified by a British couple recently denied insurance. While home insurance is mandated for tenants and recommended for homeowners, those in vulnerable areas may face higher deductibles and difficulty securing policies. The Bureau central de tarification may require insurers to offer basic coverage to high-risk policyholders, potentially at higher prices. Financial aid is available for homeowners installing protective infrastructure, though investment varies by location.