The size of fire insurance premiums is linked to the Abex index. This, calculated twice a year in May and November according to the development of construction prices, was 1,004 at the end of November 2022 against 906 in November 2021, i.e. an annual increase of 10.8% against 5.6% last year.
“This is one of the highest growths ever observed for this index”, acknowledges the president of Abex, Alain Coppe, who explains that it is essentially the prices of steel, wood and insulators that have pushed the index up.
“The insurance companies are obliged to update the indemnity value of their fire insurance to the construction costs at the time of the damage. However, they are free to overstate or fail to increase the value of the indemnity to the size of the premium and to add one or the other financial element to that”, adds Mr Coppe.
According to him, 98% of insurance companies follow the index to change the size of their premium.
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