Why has fire insurance increased so much?

Fire insurance prices have increased. The proliferation of natural disasters as well as the explosion in the cost of building materials is one of the explanations, reveals L’Echo.

Thus, in 2018, Gilles’ home insurance amounted to 44.69 euros per month. From now on, it amounts to 62.05 euros per month. “I see the increase and it is substantial”, Gilles explains.

Price of construction and materials

Home insurance is calculated on the basis of the price of construction and materials. This index, called ABEX, is revised twice a year. Between July 2022 and July 2021, it increased by 11.2%. This is the biggest increase ever. It is the only insurance in Belgium which can be indexed in this way.

“The ABEX index is included in all fire insurance contracts. It makes sense because these are the construction prices. When it burns, we rebuild with new materials”explains Patrick Cauwert, managing director of F├ęprabel, the federation of insurance brokers

To reduce your premium, you should clearly target the essentials to be insured. We could also hope for a reduction in the prices of materials and therefore in the Abex index. But it’s only happened three times in a century.

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