Forest fires: exceptional measures for victims and businesses

Exceptional measures for disaster victims

To support construction professionals affected by the fires, local federations are mobilizing through several aid programs. On its LinkedIn page, the Gironde branch of the Confederation of Craft Trades and Small Building Enterprises (Capeb) indicates that it is offering support with administrative procedures, as well as information and advice services on specific topics.

For its part, the French Building Federation (FFB) of Gironde is compiling a list of needs and offers of assistance regarding equipment, storage, accommodation, vehicles, and workshops. It is also providing support with administrative procedures.

Action Logement is implementing several broader measures aimed at private sector employees affected by job losses. These measures include personalized assessments to determine necessary actions, the provision of financial assistance, and the implementation of the Visale guarantee without income requirements to facilitate access to private rental housing.

Insurers also announced on Monday, July 27, that they would cover the costs of rehousing victims of the fires affecting Gironde, Landes and Var.

For the single fire that engulfed the area around the Arcachon basin in Gironde, 220.000 people are said to be affected.

According to Roland Lescure, Minister of the Economy: "All French insurers have committed to ensuring that all those displaced will have their relocation expenses reimbursed according to the terms of their contract, whether their residence is damaged or not."

This measure remains exceptional. Usually, the rehousing guarantee only applies when the fire has actually reached the dwelling, and not when the authorities ask residents to evacuate their homes as a precaution.

Upon presentation of supporting documents, the scheme concerns primary residences and can be applied for a maximum period of three weeks, within the limit of the period of prohibition of access to the accommodation, specified the professional federation France Assureurs.

Insurance companies are also extending until August 31 the deadline given to claimants to submit their claim, compared to the usual five days.

Coverage levels vary depending on the contracts

For property damage, the vast majority of individuals are covered by their multi-risk home insurance policy. However, these policies do not systematically cover damage to external structures, such as gates, garden sheds, or swimming pools.

Vehicles damaged by fire are covered by comprehensive car insurance policies. However, mandatory third-party liability insurance does not provide this type of compensation.

Compensation may cover damage caused by flames, but also damage caused by fire retardant products dropped by Canadair water bombers and helicopters.

Businesses insured against business interruption losses will be able to obtain compensation according to the terms of their contract. This scheme may particularly concern professionals in the hotel, restaurant, and tourism sectors, affected during peak season, as well as forestry operators and winegrowers.

In Gironde, the evacuated areas house 7.000 craft businesses and 6.300 commercial businesses, Bercy specified on Monday.

Forest fires are not covered by the natural disaster insurance scheme. Therefore, they are not subject to the system of cost-sharing for claims between private insurers and the public reinsurer, the Central Reinsurance Fund (CCR).

A bill that is still impossible to assess.

It is still too early to quantify the cost of the summer fires, but the bill is expected to be "out of the ordinary", according to an insurance professional interviewed by Agence France-Presse (AFP).

With 115.000 hectares affected by fires in France since the beginning of the year, the situation was described as "exceptional" by Interior Minister Laurent Nuñez, interviewed on France 2 on Sunday.

The only fire on the outskirts of Bordeaux, which is still not under control, has already burned 42.000 hectares. In total, 240 homes have been destroyed in the Gironde department, according to the prefecture.

By comparison, the 2022 fires in the same region, which burned around 30.000 hectares, resulted in just under 2.000 claims being paid out, for a total amount of less than 80 million euros, France Assureurs told AFP.

Initial estimates are not expected until one to ten days after the fires have been extinguished. Difficult access to the affected areas will also slow the work of experts tasked with assessing and quantifying the damage.

Fire-related damages are infrequent, but generally require very high compensation compared to other risks.

Image illustrating the article via Depositphotos.com.