Skip to main content

What does ABEX mean?

Updated

ABEX is a Belgian index that tracks changes in the cost of construction materials. Understanding how ABEX affects your Home Protect policy may help you understand why your insured amounts and maximum payment limits change over time. The index helps ensure that your coverage remains aligned with current construction costs.

Important Information

  • ABEX adjustments happen annually - Your insured amounts are aligned with the ABEX index once a year on your policy's main renewal date 

  • Both insured amounts and maximum payments are affected - ABEX indexation applies to your building and household contents insured amounts, as well as maximum payment limits for various coverage types

  • Not all coverage is indexed by ABEX - Some types of coverage use the CPI (Consumer Price Index) instead 

 

How does ABEX affect my insurance policy?

ABEX impacts your Home Protect policy by adjusting certain amounts to reflect changes in construction material costs. This indexation happens automatically every year on your policy's main renewal date.

What gets adjusted with ABEX:

1. Your insured amounts:

  • The insured amount for your building
  • The insured amount for your household contents
How the adjustment works:
  • The insurer multiplies your current insured amount by the ABEX index that applies on your main renewal date
  • Then divides the result by the ABEX index stated in your Special Conditions
  • This gives you the new insured amount for the coming year

2. Maximum payment amounts:

  • The maximum amounts the insurer will pay for damage or loss (as set out in the insurance covers)
  • These amounts change every year on your main renewal date
How the adjustment works:
  • The insurer multiplies the maximum amount by the ABEX index that applies on the day of the incident
  • Then divides the result by 847 (the base index)
  • This gives the indexed maximum amount applicable to your claim

3. Specific thresholds:

  • The €4,400 threshold for the proportionality rule (Chapter 15)
  • The €7,500 threshold for the Surround Package proportionality rule
  • The €6,250 amount mentioned for household contents valuation
  • Claims assessor cost thresholds

 

Why is ABEX indexation important?

ABEX indexation helps ensure that your insurance coverage stays relevant and adequate by:

Maintaining coverage in line with market costs:
  • Construction materials become more (or sometimes less) expensive over time
  • Without indexation, your coverage could become inadequate
  • ABEX adjustment helps your insured amounts keep pace with actual reconstruction costs
Protecting against under-insurance:
  • If your insured amount stayed the same while construction costs increased, you could become under-insured
  • Under-insurance can trigger the proportionality rule, reducing your compensation
  • ABEX indexation helps prevent this by automatically increasing your insured amounts
Adjusting maximum payments fairly:
  • Maximum payment limits also increase with the index
  • This ensures limits remain proportionate to actual costs
  • You're not disadvantaged by inflation in construction costs

 

What is NOT adjusted by ABEX?

Certain types of coverage do not use ABEX indexation. Instead, they may use the CPI (Consumer Price Index) or have no indexation:

Coverage types that do NOT use ABEX:
  • Basic Terrorism insurance (uses CPI instead)
  • Basic Third-Party Liability Building insurance (uses CPI instead)
  • Recourse by third parties (uses CPI instead)
  • Recourse by tenants or users (uses CPI instead)
  • Baloise Assistance (no indexation)

 

How does ABEX affect compensation during rebuilding?

If the ABEX index changes while your insured building is being rebuilt, your compensation may be increased to reflect the higher construction costs:

When this applies:
  • Your insured amounts change with the ABEX index under your policy
  • The ABEX index changes during the normal period required to rebuild the insured building
How the increase is calculated:
  • The insurer multiplies the original claim amount by the new ABEX index
  • Then divides the result by the ABEX index on the day of the incident
  • This gives the increased compensation amount
Important limits on increases:
  • The increased amount cannot exceed 120% of the amount determined before the ABEX change
  • The increased compensation cannot exceed the actual price you must pay to rebuild
  • The increase is calculated from the date of the incident
  • If the insurer has already paid partial compensation, the increased amount is reduced by what's already been paid

 

Where can I find the current ABEX index?

For current ABEX index values and more detailed information about how the index is calculated, you can visit the official ABEX website at www.abex.be.
Your Policy Schedule or Special Conditions will show which ABEX index applies to your specific policy.

 

How often is the ABEX index updated?

According to your policy terms, ABEX alignment happens every year on the main renewal date for your policy.

This means:
  • Your insured amounts are recalculated annually
  • Your maximum payment limits are adjusted annually
  • The adjustment always happens on the same date each year (your main renewal date)


 

Keep in mind

If anything happens, please call the 24/7 emergency assistance service for help. Then, always fill out the online claim form to submit a claim—even if you’re not sure whether it’s covered. That way, we can keep a clear record and take a closer look at your situation. Just remember to keep any relevant receipts or official documents, like a police report in case of theft, to help support your claim.