Home insurance pricier thanks to climate change: where to find cheaper cover
Extreme bushfires, floods and storms have forced many households to reconsider their home insurance.
A new survey commissioned by The Climate Council has found that more than half (54%) of Aussies think home insurance will become unaffordable in the area they live due to extreme weather.
Just last week, the Insurance Council of Australia revealed that in 2025, extreme weather cost $3.5 billion in insured losses from 264,000 claims.
Climate Councillor and economist Nicki Hutley said the survey results weren't that much of a surprise, anticipating these costs are just the beginning.
"It's a blunt reminder that climate pollution is already costing us - as more disasters anywhere, drive up costs everywhere - and those costs are growing.''
"Families know their homes face greater risk from climate-fuelled disasters, and those same risks are helping drive insurance costs — and insurance itself — out of reach as more Australians struggle to pay their premiums."
These new findings correlate with recent Finder research, where 69% of homeowners said their premiums had increased in the last 12 months to February 2025.
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Aussies planning to ditch cover in light of climate stress
Worryingly, the survey also found that 22% of homeowners with home and/or contents insurance said they are considering ditching their policy if extreme weather continues to impact premium costs.
Meanwhile, a further 65% of homeowners noted cost as the reason they hadn't taken out home insurance.
As the cost of living pressures continue to remain a key concern for households, it shouldn't have to mean choosing between preserving your budget or protecting your home.
Finder recently held its inaugural Home Insurance Awards where our experts shared the top performing home insurance policies in the market.
Split into two categories, Value and Comprehensive, we've made it easy to find some of the best home insurance policies, based on what matters most to you.
To learn more about the 2026 Finder Home Insurance Awards or to check out this year's winners, head on over to our awards page.
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