A majority of Australian homeowners have seen their home and contents insurance premiums rise over the past year, according to new research from Finder.
The study, conducted in November 2024, found that 69% of insured homeowners reported an increase, affecting approximately 6.4 million households across the country.
The research also indicated that 9% of respondents were unaware of whether their premiums had changed, highlighting a potential gap in consumer awareness regarding policy costs.
Peta Taylor, an insurance specialist at Finder, said that insurers are adjusting premiums in response to the rising frequency of severe weather events.
“Insuring your home is becoming even more expensive as insurers pass on the cost of more frequent and severe weather events,” she said. “Your house is often your biggest asset, and home insurance is a vital investment to protect yourself from financial loss due to damage or theft, but it still stings when the bill jumps.”
The Finder study’s findings are consistent with a separate report from the Actuaries Institute, which identified a significant rise in affordability stress due to increasing home insurance premiums.
The report, produced by Finity actuaries, found that 1.6 million Australian households were facing affordability stress by March 2024 – a 30% increase from the previous year.
It said that Australian households spend an average of 9.6 weeks of their gross income on home insurance. The proportion of policyholders classified as experiencing affordability stress – defined as those paying more than one month’s gross annual income on insurance – rose to 15% in March 2024, up from 12% the previous year.
Taylor suggested several ways for homeowners to manage rising costs, including paying premiums annually to receive discounts, adjusting policy excess amounts, or switching insurers – something insurance companies and brokers could share with their clients who are seeking the best home insurance deals.
“Many insurers will give you a discount for paying your premium annually. Likewise, you often can pay less by increasing your excess, but this might mean you feel the sting when it comes time to make a claim. Oftentimes, the way to score the biggest discount is to switch to a different provider,” she said.
She also noted that policyholders can change insurers at any time, even if they have already paid for a full year, as most insurers refund the unused portion of the policy.
“The competition is fierce – providers are now offering reduced premiums, smart sensors, and even airline points for those willing to switch,” Taylor said.
