Homeowners in fear amid heavy rain and flooding

Posted: 16 December 2020 5:11 pm

Severe wet weather remains in many parts of Australia, with some regions facing emergency evacuations.

The effects of La Niña are being felt once again this week as a number of weather warnings remain in place across Northern NSW and Queensland.

As of midday Wednesday, there were still fifteen current weather warnings for NSW and a further three for Queensland. They ranged from strong winds and thunderstorms to road alerts and flood watches.

The summer, it seems, is going to be fraught with wild weather and worry for many homeowners. As always, home insurance is likely to pay a pivotal role in recovery and repair.

The right home insurance policy can protect homeowners from damage due to storms, rainwater, flooding and much more. It can even pay for emergency accommodation if damage renders your home unlivable - for example, if a tree falls on your home and destroys the roof.

Speaking at an industry forum last month, Insurance Council of Australia CEO Andrew Hall reiterated the importance of home insurance for individuals and families.

"The family home is an Australian's great single economic asset," he said. "Insurance is a fundamental protection for that asset."

Worrying statistics

Despite that, many Australian homes remain underinsured, leaving owners in fear that one wild storm could put them out of pocket by tens of thousands of dollars - or more.

In fact, a 2019 assessment by MCG Quantity Surveyors found large numbers of Australian homes could be under-insured by up to 66% - or as much as $443,399.

Even more worryingly, the Australian Bureau of Statistics estimates about 1.8 million Australian homes (23 per cent) have no home and contents insurance at all.

So why are so many homeowners taking the risk? A report by the Australian National University's Centre of Law and Economics pointed to the obvious - an individual's financial position and affordability of cover.

While home insurance can be a significant investment, it's almost certainly worth it in the event something serious happens to your home.

Finder research shows that the average cost of home insurance is $1,344 a year, based on a suburban home worth $500,000 and contents of $100,000.

Comparing home insurance online can also shave serious cash off the cost of a home insurance premium. When Finder compared identical quotes from 11 different providers, there was an annual difference of $669.

Research from the NSW Emergency Services Levy Insurance Monitor also warned that consumers may be hit with a "loyalty penalty" of 25-30% on home insurance renewals, if they don't compare on an annual basis.

When was the last time you compared home insurance?

With storms likely all summer, home insurance is an essential line of defence - but there's no reason to be ripped off. Compare online and you could save hundreds of dollars.

Name Product Building Cover Contents Cover Fire, Storm & Theft Damage Sum Insured Safeguard Online Discount Cheapest way to pay
Budget Direct Home & Contents Insurance
Save 30% on your first year's premium when you purchase a new combined Home & Contents insurance policy online. T&Cs apply.
Youi Building and Contents Insurance
Youi Home Insurance takes the time to tailor a premium for you.
Huddle Comprehensive Home and Contents Insurance
Save up to 20% on your policy in the first year.
ANZ Home & Contents Insurance
Monthly or Annually
The only direct Australian home insurance provider to offer full building replacement cover as a standard feature.
Green Company
QBE Home & Contents Insurance
Save up to 20% on your first years’ premium with a new combined QBE Home and Contents policy online. T&Cs apply.
Seniors Top Home & Contents Insurance
Buy online and save up to 30% on a new home and contents insurance policy. T&Cs apply.
Qantas Home and Contents Insurance
Earn up to 20,000 Qantas Points when you apply. Points awarded will be based on your premium. T&Cs & exclusions apply.

Compare up to 4 providers

Picture: GettyImages

Get more from Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site