Bad news for your wallet: fire insurance premiums are soaring

Fire insurance premiums are climbing due to rising building material prices and an increase in natural disasters, Mediahuis newspapers reported on Wednesday.

Evolution of construction costs

The amount of fire insurance premiums is linked to the ABEX index. This index follows the evolution of the construction costs of a house and is calculated on the basis of the wages of the construction workers and the prices of the materials. Recently, the cost of construction has risen sharply due to the health crisis and the war in Ukraine, which is reflected in the index. According to the latest calculations, the ABEX index jumped almost 9% compared to the same period last year.

“No more disasters”

“Normally, premiums increase less than the index,” explains Peter Wiels, spokesman for Assuralia, the professional union of insurance companies. “The amount depends on what is left in the home insurance policy. In addition to the increase in the ABEX index is added the fact that some insurers have increased their rates. “It’s linked to the natural disasters of recent years,” continues Mr. Wiels. “There were a lot more claims. But insurance companies have to keep the balance, it remains commercial enterprises. »

.

Leave a Comment