A water damage in the kitchen, a fender bender on the way to work, an unexpected hospitalization: in each of these situations, it is an insurance contract that determines what you pay out of pocket and what is covered. Understanding how insurance works means knowing how to read what you sign, identifying useful coverage, and avoiding paying for duplicate protections.
Increase in home insurance premiums: what recent figures change for policyholders
Have you noticed that your home insurance premium has risen in recent years? It’s not just a feeling: according to France Assureurs, multi-risk home insurance premiums will reach 15 billion euros in 2025, representing an 8.4% increase year-on-year. This increase reflects both the rising cost of climate-related claims and regulatory adjustments.
In light of this reality, comparing offers becomes a cost-effective approach. Several resources allow you to compare coverage and rates, such as insurance on British & Co, which lists various solutions tailored to different profiles. Before changing contracts, check that the compensation limits and deductibles correspond to your current home, not the one you occupied five years ago.
This structural increase is unlikely to reverse soon. The accumulation of hail, flooding, and drought episodes is driving up insurers’ costs, which they mechanically pass on to premiums. In practical terms, reviewing your contract each year is no longer an option; it’s a budgeting reflex.
Insurance coverage: distinguishing between mandatory, useful, and unnecessary
Not all insurances are equal, and not all are mandatory. The Civil Code and the Insurance Code impose certain coverages (automobile liability insurance, home insurance for tenants). Beyond this baseline, each additional coverage comes at a cost.
The trap of duplicate coverage
Let’s take a common example. You take out school insurance for your child, which includes liability coverage. Your multi-risk home insurance already covers this liability for all household members. You are unknowingly paying for the same protection twice.
Checking for duplicates between contracts can save you several dozen euros per year. List your current contracts (home, auto, health, credit card) and compare the coverage point by point.
What a property insurance actually covers
The insurance contract is a technical document. It is based on a simple principle: the covered risk must be uncertain and independent of the insured’s will. In other words, an event you intentionally cause will never be compensated. Coverage is divided into two main categories:
- Property insurance, which covers physical assets (home, vehicle, professional equipment) and liability in case of harm caused to a third party.
- Personal insurance, which protects against health-related risks, work incapacity, death, or dependency.
- Optional coverage (legal protection, assistance, glass breakage), whose usefulness varies depending on your personal situation and other coverages.
Before opting for an additional option, ask yourself: does this risk actually concern me, and am I already covered elsewhere?
Insurer’s duty of advice: an obligation that extends over time
When you sign an insurance contract, the professional offering it to you (broker, general agent, representative) has a legal obligation: to analyze your needs, recommend a suitable contract, and explain the exclusions. This is the duty of advice, governed by the Insurance Code and the European directive on insurance distribution.
What has changed recently is that this duty no longer ends at the signature. The ACPR recommendation 2024-R-03, adopted on November 21, 2024, requires distributors to recontact policyholders of life insurance contracts that have remained inactive for four years, and even two years when a personalized recommendation has been provided.
The first operational deadline is set for October 23, 2026 for contracts that have benefited from personalized advice. In practical terms, if you hold a life insurance contract and have not made any significant transactions for several years, your insurer will need to contact you to reassess your situation.
This shift from one-time advice to a long-term duty of advice is a fundamental change. The ACPR has made it a priority control area for 2025-2026, with fines targeting failures in needs assessment and advisory documentation.
Reading your insurance contract: the three points to check as a priority
An insurance contract includes general conditions (the common rules for all insured parties) and specific conditions (those that are unique to you). The specific conditions always take precedence over the general ones in case of contradiction.
Here are the three elements to check as a priority:
- The exclusions of coverage, often relegated to an annex or in small print. A home contract may exclude damages caused by a lack of maintenance, which covers most infiltration issues.
- The amount of the deductible, which is the sum you are responsible for after a claim. A low deductible increases the premium, while a high deductible reduces the incentive to report small claims.
- The waiting periods, common in health or disability insurance: during this period after subscription, certain coverages do not yet apply.
A cheaper contract with a high deductible may end up costing more at the time of the claim. The price of the premium does not tell the whole story; it is the relationship between premium, deductible, and compensation limit that determines the actual quality of your protection.
Each year, on the anniversary date of your contract, you receive a notice of expiry. This is the time to compare, renegotiate, or cancel. Since the Hamon law, cancellation is possible at any time after the first year for auto and home insurance, without fees or justification. Take advantage of this leverage to adjust your coverage to your current situation, not the one from three years ago.