Priced out of protection: Thousands forced to alter home insurance coverage
Home insurance is on the chopping block with many Australians feeling the pinch of rising expenses, according to new research by Finder.
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A further 1 in 10 (9%) switched to seek out better coverage.
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Worryingly, 3% ditched or downgraded their policy – equivalent to almost 370,000 Australians who would be left financially exposed if disaster strikes.
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The research revealed almost half (47%) of policy holders auto-renewed their plan, potentially missing out on thousands of dollars in savings.
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This comes as more than 2 in 3 (68%) Australians say their home and contents insurance premium has gone up in the past 12 months.
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Tim Bennett, insurance expert at Finder, said Australians are facing the difficult decision as to whether they keep their coverage or prioritise other bills.
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"Thousands have abandoned home insurance instead of facing more premium rises.
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"Without insurance, an accident in the home or weather related damage could be financially devastating."
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The median home and contents insurance premium surged by more than 19% in the last 12 months, reaching an all-time high of $2,434, according to new Finder analysis.
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Bennett said while the cost can be a burden, home insurance offers peace of mind and financial protection.
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"Home repairs or rebuilding after a fire, flood, or other disaster can be incredibly expensive.
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"Without insurance, you'd be on the hook for these costs entirely, potentially leading to financial ruin."
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Bennett urged Aussies not to skimp on insurance.
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"Don't automatically renew with your insurer – loyalty doesn't pay, and you could find a better deal by shopping around and getting quotes from other insurers.
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"We found a huge price difference of $2,865 when we compared the cheapest annual policy and the most expensive for buildings worth $600,000.
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"The family home is the largest financial asset for many Australians, so insurance must not be overlooked," Bennett said.
| Have you done any of the following with your home and contents insurance policy in the last 2 years? | |
|---|---|
| Downgraded to building only cover | 1% |
| Cancelled because I couldn't afford it | 2% |
| Switched for better coverage | 9% |
| Switched to save money | 20% |
| Auto-renewed | 47% |
| I did not do any of the above | 30% |
| Source: Finder survey of 636 respondents who have home insurance, April 2024. Respondents could select all that apply except for "I did not do any of the above". |
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Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,071 respondents from April 2024, 636 of whom have a home insurance policy.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics, an SAP company.
- The survey has been running monthly since May 2019.
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