All multi-risk house insurance policies in France make provision for damage caused to your property through a natural disaster (catastrophe naturelle), such as a drought, forest fire, avalanche, severe storm, earthquake, or flooding.
This cover is provided through the aegis of the government, for incidents which are considered to be uninsurable, when the government steps in as the insurer of last resort.
The result is far stronger protection to homeowners than is found in many other countries.
Each year, these natural disasters occur in no less than 10% of municipalities (3,500 per year), which generates over €1billion in compensation paid.
Most of the claims are for subsidence caused by drought, and flooding from torrential rain, both of which are becoming more frequent due to climate change. The map below shows the risk by type of natural disaster.
Nevertheless, although such protection is universal, the procedure for making a claim and obtaining compensation is complex, opaque, and subject to several hurdles. The lack of transparency about it has led to many accusations of favoritism in the selection of municipalities.
In the first place, the clause is not triggered until there is an official declaration of a catastrophe naturelle in the area by the government, which itself depends on the local council submiting an application for recognition of a natural disaster.
There is normally considerable delay in the government making a decision and even if a favourable decision occurs, homeowners only have 10 days from publication of the decree to submit their claim.
Many homeowners do not even hear about it as notice of it may well be limited to publication on a board at the town hall.
If you are not familiar with the claims process we recommend you read Making a House Insurance Claim in France.
Reforms
The arcane nature of the process has finally been recognised by the government who have now passed a new law to streamline it and increase the rights of homeowners.
Among the measures are changes to the various deadlines applicable to compensation by insurers:
It extends from 10 to 30 days the period available to the insured to make their claim after the publication of the decision recognizing the state of natural disaster.
In a successful claim, the insurer will now have 21 days to pay the compensation.
In addition:
The text extends the scope of the natural disasters guarantee to include emergency relocation costs.
In the event of subsidence caused following drought or soil rehydration, compensation must be used to finance repairs that put an end to the existing disorders.
The limitation period during which the insured can demand from the insurer the payment of the compensation in the event of damage caused by the drought-rehydration risk of the soil is increased from 2 to 5 years.
With regard to local authorities, the draft law extends from 18 to 24 months the period available to municipalities to submit their application for recognition of the state of natural disaster. This is to allow for those circumstances where the damage caused by the incident may not appear for a year or more (notably subsidence).
Insurers will no longer be able to modulate the level of the insurance excess (franchise) if the local authority does not have a risk plan (Plan de Prévention des Risques Naturels - PPRN) in place. This excess could be up to €6,000 in the worst cases.
The law also includes a change in the recognition of a natural disaster in relation to subsidence due to drought, in that it accepts that the damage can be slow to evolve and that the insurers are obliged to take into account the progressive nature of the problem.
In future, the decree recognising a natural disaster in an area must present a decision "reasoned in a clear, detailed and comprehensible manner, and (mention) the means and deadlines for appeal as well as the rules for the communication of administrative documents, including expert reports on which this decision was based, under conditions set by decree".
The text also shortens the decision period: the decree must now be published no later than 2 months (instead of 3) from the filing of the application for recognition in the prefecture.
There is also some improvement to the communication protocols with local residents, although these are not specified in any detail.
More generally, the government has been tasked with reporting back to parliament on the prevention of drought and soil re-hydration and whether a specific scheme of compensation for it is necessary.
Most of the changes are operative from 1st January 2025, subject to publication of the relevant decrees, which have yet to be published.
We will be updating our guide below in due course to reflect these changes. UPDATE: See article at Insurance Claims and Natural Disasters
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