French Property and fire

Property and fire

The general rate of premium tax is 9% although different rates apply to fire risks, see below. Exemption applies to agricultural risks however 11% national agricultural catastrophe fund will apply instead.

Exemption also extends to vessels under repair and vessels under construction (on land or afloat) but does not cover harbour or shore installations, cranes etc.

Exemption applies to property risks where the property is located outside of France. This includes in-orbit space objects and launch risks outside of France.

Property risks include: exhibition (excluding transit), fine art, jewellers block, space vehicles, theft, livestock, bloodstock, hail and fire and natural forces. Please note this list is not exhaustive

Premium tax rates for fire risks:

• Fire element of a household policy - 30%
• Fire element of professional risks other than those relating to agriculture (including related business interruption) - 12%
• Fire element of non-exempt agricultural risks (including related business interruption) - 7%
• Fire element of insurance covering administrative buildings belonging to local authorities - 7%
• Fire caisses departmentales (applicable in very limited circumstances in relation to public buildings) - 24%

The amount of the gross premium relating to fire should be agreed by underwriters. Typically the French authorities would expect the minimum amount to be between 25% and 30%.

Premium tax is charged on the total premium including if applicable the natural catastrophe additional premium. Terrorism is covered separately, for details please select Terrorism under the appropriate Tax by risk section.