This law will soon cost more and affect millions of French people

2024-10-19 05:14:00

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The sharp increase in a tax is up for debate.

Back to school and saving money rarely rhyme. The waltz of bad financial news continues and French wallets will once again be hit hard by a discrete increase that will cost all families more, in a matter of weeks. An increase that will even be “stronger than those of previous years, which were already high from one year to the next”.

No one will be able to escape this surge since it is an increase in a tax, decided by the State, and which must necessarily be paid by 46 million families every year. The bill promises to be steep and will arrive very soon.

Every year, homeowners and tenants have to pay for insurance on their homes. While this protection is not mandatory for property owners, it is strongly recommended to finance repairs at lower costs (or even free). For all tenants, however, it is fundamental.

This represents a cost: 191 euros on average, according to Les Furets, an insurance comparator. This varies whether the person is an owner (€272 on average), rents empty (€165) or rents furnished (€165). Significant differences are also observed whether it is a house or an apartment. Geographic location also plays a role.

But be careful: from 1 January 2025, the price of home insurance will skyrocket: from +10 to 12% on the bill, confirm Les Furets on Flashlight. “We are already observing this trend since, on our cheapest offers, the increases over one year are of the order of 13%,” explains Cédric Ménager, general director of the comparator.

This increase is directly linked to a change in the law. At the end of 2023, the government decided that the “Natural Disasters” surcharge will represent, starting from 2025, 20% of the total amount of the note, up from 12% currently. This tax is used to finance a fund that compensates victims of floods, droughts, avalanches, earthquakes or other… Faced with the multiplication of climate risks, the State has therefore decided to increase this financial resource.

Concretely, for insurance that cost 300 euros in 2024, the amount of the additional premium was 36 euros. From January 1st it will rise to around 55 euros.

But that’s not all. The base price of insurance will also increase, not counting the additional premium. “There has been a lot of inflation in repair costs (materials, paint, suppliers, etc.). This inflation has not been fully carried over in the last two years because there was pressure from the government not to increase the prices of repairs. Insurance in times of inflation, insurers will also bear these costs, which they could not do so far “, explains Cédric Ménager.

On average the bill will therefore increase by a few tens of euros. “We pay more to continue to be covered and there isn’t necessarily any change in deductibles,” he explains. However, in a few months the check will be even more difficult to write.