Natural disasters: definition and compensation

What are natural disasters?

Natural disaster: definition

The following events are considered natural disasters:

• of natural origin;
• occurring suddenly and suddenly;
• resulting from the abnormal intensity of a natural agent;
• resulting in significant upheavals that could cause significant material and human damage (rock falls, ground movements, etc.).

The list of natural disasters covered by the guarantee in France

Climatic and land-based risks can take various forms:

• cyclones;
• storms;
• floods (linked to torrential floods, overflowing of rivers, the rise of a water table, runoff following heavy rainfall);
• long periods of drought;
• earthquakes;
• tsunamis;
• avalanches;
• volcanic eruptions;
• landslides and mudslides (subsidence, falling rocks, landslides).

Storms, hurricanes and cyclones have been compulsory covered since the law of June 25, 1990 under the “Fire” guarantee, both for real estate and for land motor vehicles.

Are fires covered by natural disaster coverage?

In France, fires are generally not covered by natural disaster guarantee. Damage caused by flames is covered by the fire guarantee included in comprehensive home insurance contracts. It covers damage resulting directly from the fire. The insured has five days to file a fire claim with their insurance. He must justify the damage suffered by retaining all damaged objects and prove the disappearance of the goods (invoices, photos, etc.). An expert appointed by the insurer can come and specify the causes of the loss and assess the amount of damage suffered.

What does the law say about natural disasters in 2024?

Natural disaster and insurance

The increase in natural disasters has given rise to the establishment of a compensation system aimed at covering the effects of natural disasters by “damage” insurers (articles L125-1 to L125-6 of the Code of insurance).

An additional premium for “Damage” guarantees

The scheme is financed by a uniform additional premium, the rate of which is set by the State. This additional premium applies to the premiums relating to the “Damage” guarantees granted by the contract and whose guarantees serve as the basis for covering the “Natural Disasters” risk.

Conditions to benefit from natural disaster guarantee

Resulting from the law of July 13, 1982, the legal compensation regime for natural disasters is based on solidarity. It requires the concomitance of four elements:

• damage resulting from a natural event of abnormal intensity;
• usual unsuccessful prevention measures;
• the existence of a “Damage” guarantee for the insured property;
• recognition of the state of natural disaster.

What are the stages of recognition of the state of natural disaster?

The request for recognition of the state of natural disaster

The request for recognition of the state of natural disaster is made by the mayor of the affected municipality. The latter must, within a maximum period of 24 months:

• complete an electronic form on the iCatNat website;
• or send Cerfa form no. 13669*01 to the prefecture (SIDPC service).

The role of the prefect

The prefect also requests several technical and meteorological reports to prove the natural disaster and the abnormal activity of the natural event (earthquake, flood, etc.). The prefect must also appoint a “Natural Disaster” referent to facilitate exchanges with local authorities.

The interministerial commission

An interministerial commission studies the request (Ministry of the Interior, Economy and Finance, Action and Public Accounts) and publishes its decision by interministerial decree at Newspaper official.

The commission’s opinion

Then, two options are possible:

• If the opinion is favorable, the interministerial commission notifies the municipalities of the publication of the decree so that the latter can, in turn, inform their citizens.
• If the commission issues an unfavorable opinion, the file is closed, because the abnormal intensity of the natural event could not be proven.

How do you know if a municipality is in a state of natural disaster?

Consult the Official Journal

To find out if your municipality is in a state of natural disaster, you must therefore consult the Official Journal regularly to check the publication, or not, of the interministerial decree declaring the state of natural disaster. For example, following the floods in Pas-de-Calais in November 2023, 181 municipalities were recognized as being in a state of natural disaster. In December 2023, following further bad weather in the region, 84 additional municipalities were recognized.

Get information from communities

Failing this, it is possible to obtain information from the town hall or prefecture of the municipality concerned, or even in the press.

Who compensates in the event of a natural disaster?

The natural disaster guarantee is not compulsory and is therefore not part of the guarantees of traditional insurance contracts (of the civil liability type).

Damage insurance contracts

Holders of a contract including at least one property damage guarantee are the only ones to automatically benefit from natural disaster guarantee. Thus, for buildings and furniture, holders of a comprehensive home insurance policy are guaranteed. Be careful however, not all goods are necessarily covered by insurance, so it is better to check before making any claim for compensation.

Specific guarantees

The same applies to holders of contracts only guaranteeing the risk of fire, theft or broken glass (this is particularly the case for many motorized land vehicles insured only by a so-called “third party” formula accompanied by the theft, fire or broken glass).

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What damage is covered by the natural disaster guarantee?

The natural disaster guarantee is exercised within the limits of the guarantees provided for in the contract (in particular for the contents of the insured building, whether it concerns a particular or professional risk).

Direct damage

Only direct damage will be compensated. This may be direct damage linked to equipment, buildings, goods, furniture.

Operating losses

Operating losses and additional operating costs resulting from material damage to insured property are also covered when this guarantee has been taken out.

Emergency rehousing

Since November 28, 2023, people hosting residents in their main residence following a natural disaster can be compensated for the costs incurred.

Indirect damage not covered

Excluded from the scope of the natural disaster regime are indirect costs (those linked to the temporary absence of enjoyment of damaged property, etc.). They remain the responsibility of victims of natural disasters, unless otherwise provided for in the contract.

What is the deadline for reporting a claim?

Since January 1, 2023, the insured victim has 30 working days, and no longer 10 days, after publication in Newspaper official to file a claim with your insurer. But, unless there is certainty that a state of natural disaster has been triggered (consult your town hall), it is advisable to declare the disaster within five to ten days of its occurrence.

How to report a natural disaster?

Initiation of the guarantee, declaration of loss and expertise are the three steps necessary for compensation.

The natural disaster order in the Official Journal and the areas concerned

For insurance to compensate a loss, an interministerial decree must above all recognize the state of natural or technological disaster.

The guarantee comes into play after its publication in Newspaper official. The order specifies the geographical areas concerned and the dates of occurrence of the event.

Damage assessment

The insured must produce a statement of damage and losses listing the entire loss with proof of the amounts advanced (replacement or repair estimate, proof of existence such as invoices, preliminary assessments, photos, etc.).

Better to keep damaged items for the appraisal.

Declaration of natural disaster

The declaration must be sent by registered letter to the insurer in charge of the contract. It must specify:

• the contact details of the insured;
• the insurance contract number;
• detailed information about the incident (nature, date, time, location);
• the detailed inventory of damages with proof of purchase;
• possible damage caused to a neighbor or a third person.

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What is the deductible in the event of a natural disaster?

In the event of a natural disaster (earthquake, flood, etc.), a deductible is applied. It is set by decree and varies depending on the nature of the damage.

For personal damaged property

For personal property, you must provide:

• 380 euros for homes or any other property for non-professional use;
• 1,520 euros if the property was damaged by a landslide linked to drought.

The deductible provided for in the contract is applied if it is greater than the amounts above.

For professional damaged goods

As for goods for professional use, the amount of the excess is equal to 10% of the amount of direct material damage suffered by the insured, per establishment and per event:

• It is at least 1,140 euros.
• The amount is increased to 3,050 euros for damage attributable to differential land movements resulting from drought and/or sudden rehydration of the soil.

What is the reimbursement amount of compensation in the event of a natural disaster?

There is no rule, everything depends on the insurer and the insurance contract, knowing that compensation is based on the expert report and the clauses of the contract. Often this amount is not enough to cover the entire loss, as certain expenses may be excluded from compensation due to contract clauses. Furthermore, warranty limitations as well as deductibles may also apply to the costs covered by the contract.

How long does it take to receive compensation?

A period of three months

The insurer is required to provide compensation within three months from the submission by the insured of a statement of damage and losses suffered (or within three months from the publication of the order if this this turns out to be later).

A provision after two months

However, the insurance company is required to pay a provision for future compensation within two months after the date of submission of the estimated condition of the damaged property.