Statutory nat cat deductible (France)

The statutory nat cat deductible is the share of the loss the policyholder keeps on every claim paid under the French CatNat scheme, set by ministerial order rather than by the policy. The standard clauses annexed to Article A. 125-1 of the French Insurance Code give the amounts. For residential and other non-business property: 380 euros per claim, and 1,520 euros when the damage comes from drought and soil rehydration. For business property, 10% of direct physical damage, with a 1,140 euro minimum, raised to 3,050 euros for drought. Business interruption carries a three-working-day deductible, with the same 1,140 euro minimum. If the policy has a higher deductible, that one applies; a carrier cannot go below the statutory figure. What catches buyers used to open markets off guard: the insured may not buy back this deductible from another carrier. The scheme wants part of the cost to stay visible to the insured, otherwise the flat surcharge would give no incentive at all. For years a modulation doubled, tripled and then quadrupled the deductible in towns with no risk prevention plan in place, depending on how many orders had been issued for the same peril over five years. The law of December 28, 2021 removed it for individuals and businesses; only property insured by local authorities is still subject to it. In claims handling the deductible applies per property and per event: two orders for two separate episodes, two deductibles. On a drought spread over several seasons, how many events actually hit the house is often argued in front of the loss adjuster, and the answer can double the retention.