Fire insurance will cost Belgians up to 11% more in 2023 as the Abex index – which dictates fire insurance prices – increased by 10.8% on November 2021. The increase is due to the rising prices of building materials, especially steel, wood, and insulation.
On Wednesday, it was revealed that Belgian households who purchase a fire insurance premium in January 2023 will pay 11% more than in the previous year due to the Abex index greatly increasing within the last 12 months.
The index, which accounts for the indemnities owed to fire victims for the replacement value of insured goods and resulting construction cost, has been set at 1,004 by the end of November 2022, which will go into effect in January 2023.
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As the figure stood at 906 in November 2021, the past year saw the Abex index increase by 10.8% on the last year, "one of the highest ever" increases according to Abex president Alain Coppé, who ascribed the increase to rising prices of building materials such as steel, wood, and insulation as a result of Russia's war in Ukraine.
On a brighter note, Coppé told French-speaking outlet L'Echo that Abex expected growth and prices to stabilise during the next six months, by the time the index is recalculated by experts.