November 27, 2022

Taylor Daily Press

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Fire insurance becomes more expensive |  Standard

Fire insurance becomes more expensive | Standard

After energy and fuel prices, premiums for fire insurance have also gone up. This is due to two reasons: the high cost of building materials and the increase in natural disasters.

Fire insurance is linked to the Abex index. This comes after the development of home construction costs and is calculated on the basis of construction workers’ wages and material prices. These have become much more expensive due to the Corona crisis and the war in Ukraine. This is reflected in the indicator: on the last count, it rose by almost 9 percent compared to the same period last year.

Do you have to pay 9 percent more from now on? “Usually, premiums rise less strongly than the index,” says Peter Wells of university insurance organization Assuralia. Thus, your premium will become more expensive, but not 9 percent. How much depends on what is still in the housing policy.

On top of the growing Abex index is the fact that some insurance companies have raised their rates. “This has something to do with the natural disasters of recent years,” Wills says. “Many claims have been filed. Insurers have to balance the balance. After all, they remain business entrepreneurs.

The Abex is expected to rise again on the next account.

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