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Home insurance statistics in Australia
With the cost of living rising, we asked Australians about their home insurance policies and what they’re doing about one of their biggest household expenses.
Home insurance is one of those everyday things that hover in the background of your life. You're not particularly excited by it, but you're glad it's there. For the last few years, Australia has been flogged with natural disasters such as floods and bushfires, which has brought home insurance back into the spotlight.
From September - December 2022, Finder conducted a nationally representative survey of over 1,000 Australians and asked them about their home insurance. We'll update this guide as more statistics come through. Here are our current results.
1. 60% of respondents have some form of home insurance. 2. 22% of respondents' homes have alarms installed. 3. 18% of respondents use video systems/CCTV. 4. 15% of respondents have a guard dog at home. 5. 10% of respondents don't protect their homes at all. 6. Of those who have home insurance, 43% say that they fully understand the benefits and inclusions of their policy. 7. Of those who have home insurance, 48% say that they partially understand the benefits and inclusions of their policy. 8. Of those who have home insurance, 8% admit to not understanding the benefits and inclusions of their policy. 9. 46% of Aussies have updated their sum insured amount on their home insurance in the last 12 months. 10. 22% of Aussies have updated their sum insured amount on their home insurance in the last 1-2 years. 11. 32% of Aussies have not updated their sum insured amount on their home insurance ever, or at least not in the last 2 years. 12. 15% of respondents have switched their home insurer in the last 12 months. 13. 11% of respondents have switched their home insurer in the last 1-2 years. 14. 74% of respondents have never switched home insurers, or have not switched in 2+ years. 15. 88% of respondents have not had to make a home insurance claim in the last 12 months. 16. Of the 12% of respondents who have had to make a claim, more common claims were for floods, mould and portable contents. 17. The average excess amount in New South Wales is $712.30, which is the highest of all major states. 18. The average excess amount in South Australia is $430.80, which is the lowest of all major states. 19. The average excess amount in Victoria is $634.10. 20. The average excess amount in Queensland is $650. 21. The average excess amount in Western Australia is $537.60.
How did we get these numbers?
1085
Number of respondents
5
Major Australian states
The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics, an SAP company.
*This data was last updated from a survey held in December 2022.
Has home insurance increased in 2022?
In short, yes. 63% of Australian home insurance policyholders have seen an increase in their premiums in the last 12 months, according to Finder research from December 2022.
In fact, South Australia has been hit with the biggest premium increases. 69% of policyholders told Finder they're paying more. This is followed by Queensland where 66% of policyholders have seen increases as well.
*This data was last updated from a survey held in December 2022.
Do you understand what's included in your home insurance policy?
Product disclosure statements are not fun to read at all. They're long, overwhelming, and no one likes to think about losing their home and possessions. But they exist so that you can understand what exactly you're entitled to, and it's really important that you do.
For the respondents who said they had home insurance, we asked if they fully understood the benefits and inclusions of their policy. We're glad to know that:
*This data was last updated from a survey held in September 2022.
When was the last time you updated your sum insured amount?
Most home insurers will ask you to declare the amount you want your home covered for. This is known as your sum insured amount.
Your sum insured amount isn't simply the value of your home, it's the cost of rebuilding your home to its original state if it was totally destroyed. So you should be considering other things like demolition costs, removal of debris, etc.
With the cost of living rising, your premiums have probably increased, but have you considered increasing your sum insured amount as well?
Shockingly, 32% of respondents have not updated their sum insured amounts recently or never have. This puts them at risk of underinsurance.
This is doubly concerning when you consider rising construction costs. According to the national Cordell Construction Cost Index (CCCI), residential construction costs increased at a record rate of 11.0% over the 12 months to September 2022.
*This data was last updated from a survey held in September 2022.
When was the last time you switched home insurance brands?
Despite the cost of living going up, only 15% of home insurance customers have switched brands in the last 12 months. The majority of respondents have admitted to never switching or switching more than 2 years ago.
Finder insurance editor, James Martin, says that there is little to no cost benefit for staying loyal to home insurers as the best deals are usually offered to new customers when they sign up online.
*This data was last updated from a survey held in September 2022.
We've been hit with a barrage of savings tips during the cost of living crisis (switching to supermarket brands, ditching streaming services, selling stuff online, the list goes on). Yes, some are quite helpful but there's a huge opportunity for bigger savings if you look at your largest household expenses. Switching things like car and home insurance every year is one of the easiest ways to keep prices down.
According to our survey, 6% of respondents have mentioned that they've been refused cover for their homes. Half of the respondents said that it was because they live in a high risk area, the other half have not mentioned why or do not know.
*This data was last updated from a survey held in December 2022.
Did you know?
The 2022 Queensland and NSW floods have cost insurers $5.65 billion in claims so far, according to the Insurance Council of Australia.
Have you made any claims in the last 12 months?
Despite recent weather, 88% of our respondents have not made a home insurance claim in the last 12 months. That's good news because it means that bad things aren't happening to your neighbours.
It is worth noting that while this is a nationally represented survey, there are a lot of Australians whose homes have been devastated in recent years. In fact, according to the Insurance Council of Australia, claim frequency is at an all-time high.
88%
Have not made any insurance claim in the last 12 months
Of the 12% of respondents who have made claims, here are the events that they've claimed for.
88%
Have not made any insurance claim in the last 12 months
Of the 12% of respondents who have made claims, here are the events that they've claimed for.
*This data was last updated from a survey held in September 2022.
Watch out for leaks
Internal water damage is the most costly form of loss (excluding natural disasters) to homes in Australia, according to a report by Chubb. Water leakage also accounts for more claims (27%) than fires (23%) and storms (22%), says a Honey study conducted by YouGov. Despite this, 58% of Australians can't pick what industry 'Escape of Liquid' relates to (hint, that's what most water damage claims fall under).
What is a typical excess for home insurance?
When signing up for a home insurance policy, you'll select an excess amount. It usually starts from around $500 and can go upwards of $1,000. In the event of needing to claim, you'll have to pay this excess amount which is usually deducted from your payout.
It looks like New South Wales homes prefer to have a higher excess with an average of $712, whereas South Australia prefers a lower average excess of $430.
If you're curious, these are the average excesses that home insurance customers are opting for across Australia.
*This data was last updated from a survey held in September 2022.
Why you can trust Finder's home insurance experts
We're free
You pay the same as buying directly from the home insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of home insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find home insurance by explaining your cover options simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 30,000 respondents. The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics, an SAP company. The survey has been running monthly since May 2019.
Jessica Prasida is a travel insurance expert for Finder. She lives and breathes travel, having worked as a travel agent and branch manager at STA Travel for over 4 years, then writing about travel insurance with Finder for another 5 years. Jess has a Bachelor of Business from the University of Technology, Sydney and a Tier 1 General Insurance qualification.
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