Home insurance: why prices vary by region?


The price of home insurance can vary significantly from region to region Photo credit: Shutterstock

The prices of home insurance vary according to several criteria, including that of geographical location. Differences can be significant from region to region. Which regions have the highest premiums? And those where, on the contrary, they remain below the national average? Besides, how can such a disparity be explained?

Summary:

  • Price of home insurance: location is important

  • Home insurance: the impact of location, in numbers

  • The amount of an insurance premium depends on the risk

  • Insecurity is concentrated in certain regions

  • Climatic events remain localized

Price of home insurance: location is important

According to the latest barometer published by LeLynx.fr for the year 2020, the French have spent an average of 160 euros to ensure their accommodation. However, by definition, any average hides the differences and specificities, which can sometimes turn out to be significant.

It is true that the criteria taken into account in the calculation of the price of home insurance are varied:

  • The situation of the insured (tenant, owner, etc.).

  • Their profile (age, marital status, number of children, etc.).

  • Its claims history.

  • The characteristics of his accommodation (individual house, apartment, surface area, presence of annexes and/or specific protective equipment, etc.).

  • The declared value of his furniture and objects.

However, another element is rarely put forward by insurers: the geographical location of the property to be insured. Consequently, you will not be treated in the same way by your insurer depending on whether you live in Paris, Nice, Saint-Étienne or a town in Corrèze.

Home insurance: the impact of location, in numbers

As Assurland shows in a study published in July 2020, home insurance for a typical apartment of 60 to 90 square meters will cost 231 euros per year for a household living in Île-de-France. The Paris region is the most expensive geographical area. It is closely followed by Provence-Alpes-Côte d’Azur (228 euros). Occitania follows at 202 euros, while Brittany closes the ban, at 139 euros.

Fewer claims, but more expensive insurance in 2021

According to UFC-Que Choisir, which took as a reference the twenty largest insurers in the sector, six household profiles and five cities, the average premium for home insurance increased by +2% in 2021. 80% of insurers increased their prices over the period. However, the number of claims recorded in 2020 fell by -4%, as recalled by the French Insurance Federation. The number of burglaries fell by -57% over the two periods of confinement (from March 17 to May 10, then from October 30 to December 14), according to data from the database of crimes and offenses recorded by the police. and the gendarmerie. The consumer association rightly points out that households can hope to make significant savings on their home insurance premium by playing the competition. Moreover, the conditions for changing insurers have been considerably relaxed in recent years.

This classification by region is strictly identical in the case of individual houses of 90 to 130 square meters, for which the home insurance premium comes out on average at 248 euros. Île-de-France peaks at 311 euros, where Provence-Alpes-Côte d’Azur is displayed at 300 euros and Occitanie at 277 euros. The prize for the least expensive insurance is once again awarded to Brittany (209 euros).

The amount of an insurance premium depends on the risk

Such location-related disparities can be difficult to accept for policyholders affected by high premiums. However, they can be explained. Indeed, the notion of risk is central in the calculation of an insurance premium. In other words, the greater the risk of loss, the higher the cost of home insurance will be.

The amount of an insurance premium is calculated on the basis of what is called “the pure premium”. It is equal to the average (we speak here of expectation) of the losses which the insurer must face for the risk it insures. And this loss varies by region, for different reasons.

To know: other criteria impacting the price of home insurance

Other elements are taken into account in the calculation of an insurance premium:

• Safety loading, allowing the insurer to deal with unforeseeable losses.

• The insurer’s management fees.

• Taxes levied by the State.

Insecurity is concentrated in certain regions

In terms of insecurity and burglaries, the regions do not play on an equal footing. Ile-de-France, Provence-Alpes-Côte d’Azur and Occitanie are among the most exposed, due to the concentration of individual houses and centers of delinquency. Unsurprisingly, these are the geographic areas where home insurance premiums are the highest. But the specifics are sometimes even finer: within the same region, the premiums can vary significantly. In terms of burglaries, there are therefore clearly defined risk areas.

According to the report Insecurity and delinquency in 2019: statistical report, published by the Ministry of the Interior, “two sets of departments with high rates of home burglaries stand out: from the North to Île-de-France passing by the east of the Paris Basin and the Rhône Valley to the Mediterranean rim (from the Hérault to the Var)”. In addition, “Loire-Atlantique, Gironde and Haute-Garonne are among the departments most affected by home burglaries in 2019”.

Climatic events remain localized

Similarly, climatic events influence claims and therefore the amount of insurance premiums. Some regions are more susceptible to natural disasters such as floods, storms and destructive hailstorms.

According to data listed by the firm specializing in natural risks Ubyrisk Consultants, of the 1,964 natural disasters listed in France between 2001 and 2020, nearly 50% were of meteorological origin (storms, cyclones, bad weather, tornadoes, thunderstorms, hail, snow). Analysis of the spatial distribution of these events shows a high concentration in the southern third of the country: 58% of the events recorded are located under the line running from the mouth of the Garonne to the south of the Lyon area. The additional cost in terms of home insurance recorded in Provence-Alpes-Côte d’Azur and Occitanie is again explained by an increased risk of claims.

Swimming pool: beware of the additional cost in terms of insurance

Since the first confinement of 2020, swimming pool specialists have been overwhelmed with requests. The experience of confinement has convinced many French people of the importance of this type of equipment. If it is not compulsory to insure your swimming pool, it is nevertheless a question to be studied closely with regard to the cost of this investment. In general, swimming pool insurance is an optional guarantee associated with a home insurance contract. This is triggered in the event of a specific event such as fire in the technical room, theft of equipment (tarpaulin, garden shed, barrier, alarm, pump, robot cleaner) or even vandalism. According to the comparator LeLynx.fr, insuring your swimming pool can drive up the price of home insurance, which can double up to.

.

Leave a Comment