One in three Australians only review their home and contents insurance policies when moving to a new home, according to financial comparison website Mozo's report.
Among the respondents, 56% said they took out home and contents insurance for peace of mind, while 21% said they insured their home to comply with their mortgage terms and conditions.
Concerningly, 21% of the respondents said they never reviewed their home and contents insurance policies – only blindly renewing every year.
“When it comes to home insurance, loyalty doesn't always pay off,” said Claire Frawley, personal finance and insurance expert at Mozo. “Before renewing your policy, it's important to review and compare how much you are paying. If you do find you are overpaying and choose to switch providers, often, you can negotiate for any no claims bonus to be transferred across to your new policy.”
Location is one of the vital factors contributing to the cost of home insurance companies – with the Northern Territory considered the most expensive state, with the average annual premium hitting $4,759, followed by Queensland at $3,299.
As home insurance premiums continue to rise due to climate change and other factors, Mozo explained that policyholders can save up to $1,551 a year on average by comparing home and contents insurance policies when renewing and switching to a more competitive provider.
“There are not many people around at the moment who wouldn't want an extra $1,500 in the household kitty. My advice is don't wait until you move to shop around; review your home
insurance policy when it comes around for renewal,” Frawley said. “It's also a good idea to make sure that if you've made any recent additions to your property, you include these as these items on your policy, so you are not left underinsured.”
