In the last few years, Australia has been impacted by some of the most extreme weather on record, causing millions of dollars worth of damage.
The South East Queensland and NSW floods, for instance, have cost insurers over $6.07 billion in claims so far.
Meanwhile, the severe weather and flooding that has been taking place since 12 October 2023 in parts of Victoria, Tasmania and New South Wales has already amounted to over $755 million in claims.
Home insurance costs
Largely as a result of these catastrophes (as well as inflation driving up the price of materials), home insurers have increased premiums.
Home insurance costs have risen 28% since March 2023 to $1,894, according to a study by the Australian Actuaries Institute. Properties in disaster-prone areas have gone up by 50%.
Finder has also found instances in which they’ve risen by as much as 104%.
We also gathered over 300 quotes from 17 different insurers for a $500,000 building and $100,000 of contents. The average cost of a home and contents insurance policy was $160 per month.
Also, many home content policies do not cover jewellery insurance and it is recommended you speak to a company like Centrestone to ensure their important pieces are covered.
The reality is that costs can differ massively depending on where you live, the size of your house and the insurer. You can’t do much about the first 2 factors. The third though is well within your control.
7 ways to save on your policy
Compare multiple quotes
To give you an idea of how much you could save, Finder’s insurance team gathered over 700 quotes from over 20 providers and found a difference of $1,362 between the cheapest and most expensive home and contents insurance policies.
Don’t just accept the first home and contents insurance quote you get. Compare quotes from at least 3 or 4 different insurers. If you’re buying home insurance for the first time, most brands offer sign-up discounts.
Search for discounts
Sign-up discounts can save you lots in your first year. Several insurers will knock off as much as 15%.
However, insurers often increase your costs significantly after the first year to make up for the deal you’ve just received.
Review your policy at least once a year
To avoid big price hikes, make sure you shop around every year. Loyalty doesn’t pay. Do this every 12 months and you could save hundreds or maybe even thousands of dollars.
Pay your premium annually
If you can afford to pay your home insurance for the entire year, it’s often up to $100 less than paying monthly.
Increase your excess
The excess is an amount that you need to pay upfront when you make a claim. All insurers charge at least one excess.
If you increase your excess, your home insurer will lower your premiums. Just keep in mind that this makes smaller claims pointless – for example, if you had $1,200 worth of water damage with a $1,200 excess.
Improve your home security
Security systems and smoke alarms help reassure insurers and can reduce the risk of your home being damaged or broken into.
Installing these items can also reduce the cost of your home and contents premiums. Make sure to also check your smoke alarms on a regular basis.
Want to learn more about insurance costs?
Check if your home is in a flood or high risk area with Soho’s guide. And for your next property search, set up your match profile on Soho to check out some amazing listings available right now.
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