Home insurance: why do prices vary by region?


The price of an insurance home can vary significantly in one region elsewhere credit photo: Shutterstock

Home insurance rates vary according to several criteria, including geographic location. The differences may be noticeable from one region to another. Which regions have the highest premiums? And those where, on the contrary, they remain below the national average? Besides, how to explain such a disparity?

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

  • L’insécurité is concentrated in certain regions

  • Climate 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 insure housing. However, by definition, any average masks differences and specificities, the same can be important.

It is true that the criteria taken into account in calculating the rate of an insurance home are varied:

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

  • Her profile (age, marital status, number of children …).

  • His history in terms of claims.

  • The characteristics of its accommodation (detached house, apartment, area, presence of annexes and / or specific protective equipment …).

  • Declared value of ses meubles and objects.

However, another element is rarely highlighted by insurers: the geographical location of the property to be insured. Therefore, 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 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 is based on the top 20 insurers in the industry, six household profiles and five cities, the average home insurance premium increased by + 2% in 2021. 80% of insurers increased their their rates over the period. However, the number of claims registered in 2020 fell by -4%, as the Fédération Française de l’Assurance points out. 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 base of crimes and offenses recorded by the police. and the gendarmerie. The Consumers’ Association rightly points out that households can expect to make significant savings on their home insurance premium by competing. In fact, the conditions for changing insurers have been considerably relaxed in recent years.

This classification of the region is strictly identical in the houses of individual houses of 90 to 130 meters, for the same insurance cards for housing on average 248 euros. Île-de-France peaks at 311 euros, with Provence-Alpes-Côte d’Azur at 300 euros and Occitania at 277 euros. La palme de l’assurance la moins onéreuse is awarded once again in Brittany (209 euros).

The amount of an insurance premium depends on the risk

Such localization disparities may be difficult for high-premium policyholders to accept. However, these are explained. In fact, the notion of risk is central to the calculation of an insurance premium. In other words, the higher the risk of a claim, the higher the cost of home insurance.

The amount of an insurance premium is calculated on the basis of what is called a “pure premium”. It is equal to the average (we are talking about hope here) of the losses that the insurer has to face for the risk that it insures. And that loss varies from region to region, for a variety of reasons.

Namely: other criteria impacting the price of home insurance

Other elements are taken into account in calculating an insurance premium:

• Security loading, enabling the insurer to deal with unforeseen claims.

• The insurer’s management fees.

• Taxes collected by the state.

L’insécurité is concentrated in certain regions

In terms of insecurity and cambriolages, the regions must not be on an equal footing. Île-de-France, Provence-Alpes-Côte d’Azur and Occitania are among the most exposed, due to the concentration of individual houses and homes of delinquency. Unsurprisingly, you will find the geographical areas where the first insurance premiums are the highest. But the specifics are sometimes even finer: within the same region, premiums may vary significantly. In terms of burglaries, there are therefore clearly defined risk areas.

According to the report Insecurity and crime in 2019: statistical report, published by the Ministry of the Interior, „two sets of departments with high rates of burglary are distinguished: from the North to the Île-de-France through the ‘is from the Paris Basin and the Rhône Valley to the Mediterranean (from the Hérault to the Var) ”. In addition, “the Loire-Atlantique, the Gironde and the Haute-Garonne are among the departments most affected by burglaries in 2019”.

Climate events remain localized

Similarly, climate events are affected by accidents and therefore the amount of insurance premiums. Some areas are more sensitive to natural disasters such as floods, storms and destructive hailstorms.

According to Ubyrisk Consultants, 1,964 natural disasters recorded in France between 2001 and 2020, almost 50% were of meteorological origin (storms, cyclones, inclement weather, tornadoes, thunderstorms, hail, snow). The 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 below the line from the mouth of the Garonne to the south of the Lyon metropolitan area. The additional cost in terms of home insurance recorded in Provence-Alpes-Côte d’Azur and Occitania is again explained by an increased risk of claims.

Pool: pay attention to the extra cost in terms of insurance

From the first confinement of 2020, swimming pools are crumbling under demand. The experience of confinement has convinced many French people of the importance of this type of equipment. If it is not mandatory to insure your pool, it is nevertheless a matter to be studied closely in view of the cost of this investment. In general, pool insurance is an optional guarantee associated with a home insurance contract. This is triggered in the event of a specific event such as the fire in the technical room, the theft of equipment (tarpaulin, garden shed, barrier, alarm, pump, cleaning robot) or vandalism. According to the comparator LeLynx.fr, insuring your pool can lower the price of home insurance, which can even double.

.

Leave a Comment