In this article
To examine a change in your premium, start with your renewal notice and your policy. Look for any adjustment or indexation clause, then ask your insurer to explain what applies to your situation. You can then prepare a comparison that takes account of the cover, not just the amount payable.
Find the relevant documents
Your insurer must periodically send you a renewal notice. This document states the premium payable and the date from which you must pay it. Place the notice alongside your policy and, if you have kept it, the previous notice. Note the amounts and the periods they relate to before asking for an explanation.
The policy includes the general terms and the specific terms. The general terms cover, among other things, the risks covered, exclusions, deductibles, claims procedures and the method of paying premiums. The specific terms cover, among other things, your identity, the description of the insured risk and the premium amount. Read these documents together: they will help you formulate a precise question about your policy.
Home insurance indexation and premiums: what should you ask?
Look in the policy for the sections on the premium and its adjustment. If you find an indexation clause, note its heading and ask the insurer to explain how it applies to the amount shown on your notice. You can also ask the insurer to distinguish the factors that explain the change and specify the period to which they relate.
If you cannot find a clause or its wording seems ambiguous, ask the insurer to point out the applicable passage. The sources consulted for this article do not describe a general indexation mechanism: on their own, they therefore do not make it possible to determine the cause of the change in your premium.
Check the information about your home
When you take out a policy, the insurer may ask you to complete a questionnaire used to assess risks and set the premium. The information to provide about the home includes its type, floor area, number of rooms, outbuildings, level of security and use. An estimate of the value of the belongings to be covered and the optional cover you want are also requested.
Review the description in your specific terms and prepare your questions if your situation has changed. You must inform your insurer of any change that could affect your policy. The insurer may consider that a change represents an increase in risk compared with the original situation. The insurer may then notify you either of a refusal to cover the new risk or of a proposal to increase your premium. This is a separate situation from the question to ask about a possible indexation clause.
Compare proposals on a clear basis
You can contact several professionals at the same time to compare their proposals. To prepare your requests, gather the description of your home, your estimate of the belongings to be covered and the cover you want. Ask for each proposal to be sufficiently detailed so that you can compare its terms with those of your current policy.
Before you sign a home insurance policy, the insurer must provide you with an insurance proposal including an information sheet on prices and cover, as well as a copy of the draft policy or a detailed information notice. These documents must specify, among other things, the applicable limits of cover, such as the list of risks not covered. Also look at the deductibles and policy terms: a useful comparison considers the protection sought as well as the premium.
Requesting a proposal allows you to study an offer: take the time to read it before signing anything. If a term or a difference from your current policy remains unclear, ask the professional concerned for an explanation.
If you are considering changing policies
After the first year of the policy, you have the right to cancel your home insurance at any time, without penalty. The procedure varies depending on whether you are a tenant or an owner. For a tenant, home insurance is compulsory and the home must be insured at all times. After the first year, the tenant must take out new insurance that will take over; the new insurer sends the cancellation request to the previous insurer.
Before deciding, therefore, check your situation and the dates with the professionals concerned. This article provides general guidance; explaining your premium and choosing an offer require a review of your documents and your needs.