Australians are feeling the strain as home and contents insurance premiums have surged dramatically over the past year, with a 14% national increase, according to Canstar research. The hikes, driven by rising rebuilding costs and the increased frequency of extreme weather events, continue to put pressure on homeowners.
In New South Wales, homeowners saw the steepest rise, with premiums climbing by 18%, or $403, bringing the average cost to $2,613 per home. However, residents in North Queensland and the Northern Territory, areas plagued by natural disasters, continue to bear the highest rates. In the Northern Territory, premiums skyrocketed 17%, or $700, while North Queenslanders faced a 2% increase of $112.
Canstar’s data insights director, Sally Tindall, highlighted that recent weather events had been pivotal in driving these increases. “Homeowners across the country are facing rising home insurance costs in a year marked by wild weather events,” Tindall said.
The report cites the aftermath of ex-tropical cyclone Alfred, which alone led to 125,000 claims and a total cost of $1.36 billion, as a significant contributor to the increase. Premiums also rose by 17% in Victoria, South Australia, and Tasmania, while households in Western Australia faced a more modest 9% rise.
The premium hikes extend beyond weather-related damage, affecting contents insurance as well. Tindall pointed out that incidents such as accidental damage, burglary, and even burst pipes or overflowing sinks could contribute to increased premiums, even for homes not in high-risk weather areas.
Given the ongoing increases, Tindall urged homeowners to shop around to find the best rates, especially as insurance premiums continue to climb. “Even if you’re not in a high-risk region, it’s worth comparing options to ensure you’re not overpaying.”
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