The Natural Disaster Compensation Fund suffers from a deficitOlivier Moustacakis, Director General of Insurance Comparison Assurland, announced Thursday, August 11 in franceinfo. However, in the face of successive heat waves and the constant drought that occurs in France, cracks multiply in the buildings and “Insurance companies expect the bill to rise.” Furthermore.
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“To restore balance to the diet”Olivier Mostakis estimates that the 12% tax collected on home insurance contracts to fund the compensation fund “You should go to 18%.” After cracks appeared in the building, “The municipality must declare a natural disaster to be able to start the process” And the “It’s part of an obstacle course.”
franceinfo: Do we have an idea of the average time to get compensation for cracks appearing due to dryness?
Olivier Mostakakis: Drought is a very complicated issue because the municipality has to declare a natural disaster to be able to start the process.
“Unfortunately, due to counterexperience and depending on the nature and origin of the crack, it could take years. After two years, about half of the files are closed without further action.”Olivier Mostakakis, CEO of Assurland
This is a topic of major concern as insurance companies expect the bill to increase. From 1989 to 2011, there were about fifteen billion euros in damages due to drought. From today until 2050, they expect 43 billion euros.
Is this why insurance companies seem to be getting more and more difficult year after year?
The insurance company is not picky. There is a Natural Disaster Compensation Fund that is fueled by a tax levied on all home insurance contracts. It was 5.5% in 1982 and is now 12%, but this branch of natural disasters has a deficit because it makes it possible to collect 1.7 billion euros while on average every year there are 2 billion euros in compensation. There is no magic solution. Prevention is one of them, but it will only have an effect in the medium and long term by conducting preliminary studies of the soil before any new construction. Today, if we want to continue this solidarity scheme, experts believe that this tax should increase to 18% to rebalance the scheme.
What advice can you give people who will be affected by these cracks in buildings to avoid disappointment?
The problem is that when there is drought, the effects appear after several years. The onset of the crack can be seen only after two years. So, you should try to find out if there are other people in your area who are affected by the same phenomenon. At this point, you should contact your municipality because it is they who should collect the file with the governor. After that, it is the government that will decide whether to declare a state of natural disaster or not. This is the time when you can take all the steps. It’s a bit of an obstacle course.