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Insurance: some municipalities encounter difficulties in obtaining insurance
City councilors are experiencing increasing difficulties in obtaining insurance. Faced with riots, droughts and floods, the prices of insurance and franchise contracts are exploding. Some can no longer even find a company that agrees to insure them. – (France 2)
City councilors are experiencing increasing difficulties in obtaining insurance. Faced with riots, droughts and floods, the prices of insurance and franchise contracts are exploding. Some can no longer even find a company that agrees to insure them.
More and more municipalities are experiencing the same difficulty: succeeding in obtaining insurance. Example in Arcueil, near Paris, target of several rioters in June. The damage is still visible and estimated at “around 40,000 euros” by Mayor Christian Métairie. This summer the insurer changed the contract: in the event of urban violence, the deductibles increase from 1,500 to 2 million euros. “This means that in most cases, except for serious losses, we no longer have insurance at all.”, deplores the city councilor. The insurer justifies itself: with the increase in violence and the exponential cost of bad weather, deductibles are exploding to cover the deficit.
Some insurers break the contract
Some decide to break the contract as in Coteau (Loire). Last year, a hailstorm destroyed several buildings. The mayor finds herself without insurance. “We suffered the hail, we didn’t ask for it. The damage is more than 3 million euros, that does not mean that insurance should not play its role behind it. denounces Sandra Creuzet-Taite, mayor of Coteau. Without insurance, she will not be able to cope in the event of a new disaster. “I won’t be able to pay the salaries of our municipal agents, we will be in a sort of bankruptcy”, she is alarmed. The government has launched a mission led by a mayor. The idea is to create a sort of common pot so that all insurance companies contribute to the municipalities’ costs in the future.
