In a shocking revelation, a national survey by Choice found that nearly 87% of home and contents insurance policyholders have seen their premiums rise with their most recent renewal notice. The Actuaries Institute’s research further confirms this alarming trend, revealing a 28% increase in median home insurance premiums in the year to March, averaging at a staggering $1,894 across all states.

For high-risk properties, including those in flood-prone areas, the premiums have shot up by a whopping 50%. This is the most significant rise in two decades, leading to concerns that households may abandon insurance altogether due to the skyrocketing costs.

Home insurance premium increases have FAR outstripped inflation over the last 12 months

As a result, nearly one in eight Australian households (1.24m) are now considered “affordability stressed”, spending more than four weeks of their annual income on home insurance.

But there's a silver lining amidst this gloomy scenario. Compare the Market*, a leading comparison business, is helping Australians fight back against these rising costs.

Adrian Taylor, Executive General Manager of General Insurance at Compare the Market*, offers some valuable advice. "When comparing policies to your current insurance, ensure you're comparing the same sum insured, same excesses, and same optional cover. This way, you can be sure your results are comparable," he advises.

Mr Taylor also suggests playing around with the excess amount to see if it lowers the cost of the insurance premium. He reminds us that while choosing a higher excess for a lower premium means you'll have to pay more in the event of a claim, the savings from switching may well outweigh the cost to cancel.

He also recommends considering a home security system, and notifying your insurer of your retirement status, all of which could potentially lower your premium.

With Compare the Market*, you can compare up to 7 different home insurers*, helping you to look for a better deal. So, don't wait for your renewal notice to arrive. Take control of your home insurance costs today with Compare the Market*.

Remember, it's not just about finding the cheapest insurance, but the right insurance for you. And with Compare The Market, you're in safe hands.

*Please note, members, this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We simply do this to assist with the costs of running the SDC. Thank you!

 

[Barbara V]

Unless you have antique furniture, mega jewellery and Persian carpet throughout, why insure for contents? Your building is worth saving 100%, contents are replaceable. Photos of course need a strong box. We hanged and saved.

Agree , will be ditching contents insurance this year,at my age would buy secondhand

 

[LeahI]

"Keep up with the times"? I suspect that insurers well and truly have done so. Quoting Wikipedia:

"Expanded polystyrene (EPS) is another type of cladding that is combustible and increases the likelihood of fire spreading more quickly, as it may shrink, melt or ignite when exposed to elevated temperatures. "

Why would an insurer willingly take on an increased risk?

Why is this an increasingly used home building product if it's so potentially hazardous in a fire?

 

[mylittletibbies]

I will certainly be looking around this year. Mine went up 49.5%.

Mine too, and I live in the Wheatbelt, not too much chance of getting flooded here any time soon.
Have only made one claim in my life and that was for damage to a fence during a storm .
I tried six other companies for comparisons, I do this every year, and none were any better.
If this keeps happening pensioners won't be able to afford insurance.
Perhaps insurance companies should think about how many people will be forced to drop their insurance and how that might affect their bottom line. You can't get blood out if a stone. At an average of $1800, that's about $70 out of each pension payment, who can afford that.

 

[mylittletibbies]

I will also drop my contents insurance next year. Not worth it, I've never made a claim for contents l probably could have furnished my home again for what I've paid in premiums.

 

[Clancieblue]

When my insurance company raised my premium & told me that I had to cover for risk of a tsunami (I live west of the ranges) I told them to take a hike as if I was hit by a tsunami they wouldn't pay out because they would all be dead. They still told me they would pay out!!! I now only cover for contents. If I lose my house I will have the money to buy new furniture etc & move into retirement living where I only pay rent.

But where will you get the bond for retirement living?

 

[LeahI]

We're in cyclone zone. When looking at insurance, 'big' companies' quotes were like $10-$16k py. Found one at $3.6k and was thrilled. After the recent cyclone and floods I guess ours will be up .

 

[Liz]

I ditched my contents insurance last year, was costing a fortune. Don't live in a flood prone area, had never had any claims. My pet insurance has just gone up $12 a fortnight but I consider this a necessary evil.

 

[Fairynxis]

Whoa, skyrocketing premiums sound like a nightmare! Been there, done that. When I was facing a similar situation, I found my secret weapon: hunting down recommendations for the best renter's insurance. It's like finding a superhero cape for your home protection needs! Don't let those premiums get you down—arm yourself with the right coverage and take back control. You got this!