Europe's news in English

COPY LINK

REAL ESTATE

French houses priciest in Europe – but debts low

France is the most expensive place in Europe for new housing, according to a study released this week, but the country's inhabitants' are only half as indebted as their neighbours in the UK.

Published: 13 June 2012 12:29 CEST

The study by finance company Deloitte reveals the average price of new real estate in the capital is €8000 per meter squared. The cheapest is in the Hungarian capital Budapest, where the average price per square meter is €940.

France also comes second for the general cost housing – including renting, building charges and home improvements. It is 41% over the EU monthly average of €3200 per year. Denmark is the most expensive at 70%.

Getting on the property ladder is hard in France too – not only do buyers have to face a 6.2% hike in house prices, the highest in Europe, Deloitte also calculated they need to save 9.11 years’ worth of salary to buy a house outright.

But one area where France isn’t worst in Europe is housing debt – mortgage loans total 41% of GDP, which is over 10% lower than the European average of 52%.

At an average of €12,310 per inhabitant, personal debt in general in France is on a par with most other European countries, including Austria, Belgium and Spain, but they were only slightly more than half those of Britons, who owed an average of €23,270 per person.

Deloitte’s study released today looked at 12 European countries in total, including Belgium, Denmark, Czech Republic, Austria, France, Italy, Spain, Hungary, Hollande, Poland and Britain.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

How to ensure your French property is insured for storm damage

In the wake of Storm Ciaran, thousands of property owners in France are preparing insurance claims – with initial estimates of the bill for damage between €370 million and €480 million.

Home insurance is compulsory in France, whether you own the property you live in or you rent – and it must include some level of storm damage cover.

Check also to see if your insurance provides cover in case of a declaration of a catastrophe naturelle.

The garantie tempête (storm guarantee) covers damage caused by violent winds. What constitutes a ‘violent wind’ varies from contract to contract, but there appears to be a widespread consensus of agreement on wind speeds over 100km/h.

In most insurance contracts, this covers damage caused by the storm and within the following 48 hours – so you’re covered if, for example, a tree weakened by the storm comes down within that period and damages your property.

Be aware that, while the storm guarantee automatically covers the main property, it generally only covers any secondary buildings and light constructions – such as a veranda, shed, solar panels, swimming pool or fence – if they are specifically mentioned in the contract.

The same is true of any cars damaged by debris. A basic insurance contract might not include storm damage, so it is always worth checking.

Damage must be reported to your insurer as quickly as possible. The deadline for making declarations is usually five days after any damage is noticed. This is especially important for second home owners, who may not be at the property when the damage occurs.

In some cases – such as in the aftermath of Storm Ciaran – insurers may extend the reporting period. But under normal circumstances, it’s five days after the damage has been discovered.

What happens next

To make a claim, the first thing to do is contact your insurer by phone or email. Your insurer will take you through the next steps, but usually you have to send in a declaration – which should include an estimate of any losses and for any repairs, with evidence where possible, such as photographs and any receipts for purchases.

Your insurer may also request proof of wind intensity, which can be provided for example by a nearby weather station.

The insurance company may appoint an expert to come and assess the damage, so make sure to keep damaged property safe until they arrive, as well as all invoices for any urgent repair work.

What if you’re a tenant?

If you rent your property, you must report any damage inside the accommodation to your insurer and also notify your landlord so that they can file their own claim.

In the case of a co-propriete, you must declare damage inside the accommodation to your insurer, while the trustee sends his own declaration to the collective insurance (which sometimes covers the private areas) .

How long does it take for claims to be settled?

Payment of the compensation provided for by the “storm guarantee” depends your home insurance contract. After the insurer has estimated the amount of damage, compensation is generally paid between 10 and 30 days following receipt of the insured’s agreement.

What if we got flooded?

In the case of flooding, you may have to wait for a natural disaster order to be issued.

Catastrophe naturelle

The ‘state of natural disaster’ is a special procedure that was set up in 1982 so victims of exceptional natural events, such as storms, heavy rain, mudslides and flooding, as well as drought, can be adequately compensated for damage to property.

The government evaluates each area and deems whether it qualifies for the status of catastrophe naturelle (natural disaster).

Essentially once a zone is declared a natural disaster, victims can claim from a pot of funds created by all insurers. If the zone is not declared a disaster, insurance companies are under no obligation to pay out.

Under a “state of natural disaster” residents are covered for all those goods and property that are directly damaged by the phenomenon, in this case storms.

It applies to residential or commercial buildings, furniture, vehicles and work equipment that are already covered by insurance policies.

Homes must be already covered by a multi-risk insurance policy for the status of natural disaster to count.

Url copied to clipboard!