2023-11-23 10:42:29
The Abex index, on the basis of which the amount of fire insurance premiums is calculated, rose to 1,041 at the end of November, an increase of 3.7% over one year.
Your fire insurance will cost you (at least) 3.7% more expensive in 2024according to the new Abex index published at the end of November and on the basis of which home insurance premiums are indexed. This index, calculated twice a year (in May and November), was established at 1,041 in this month of November 2023compared to 1,004 a year ago, i.e. annual increase of 3.7%, compared to +10.8% last year.
These are essentially the prices of construction materials which serve as a basis when calculating the index. These having soared in 2022, the growth of the index, and therefore of fire insurance premiums, was one of the largest ever observed last year. In 2023prices of construction materials gradually stabilizedwhich leads to a lower indexation of the index for 2024.
Insured replacement value
As a reminder, in Belgium, it is the replacement value of a property that is insured. “Insurers are required toupdate the indemnity value of their fire insurance to the construction costs (including labor) at the time of the disaster. But they are however free to pass on or not the increase in the value of the compensation to the amount of the premium and to add one or another economic element (increase in losses linked to natural disasters, heavier management costs, etc., Editor’s note)”, explains Alain Coppe, president of Abex.
He estimates that 98% of insurers follow the index to change the amount of their premium. But insurers are therefore free to apply an additional increase to that of the index. Not all contracts are indexed to 1is January of the year, since it is the date ofannual maturity of the contract which is taken into account for indexation.
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