You might be paying $1,100 more than you have to for home insurance
Same home, same suburb but double the cost for home insurance. Why it's important to compare your options before you buy.
If you live in NSW you could be paying up to $1,100 more than you have to for basic home and contents insurance, according to the latest report from the Insurance Monitor, professor Allan Fels AO.
The latest quarterly report, submitted to the honourable Dominic Perrottet MP, NSW Treasurer, found that across 11 different NSW suburbs there was an average price difference of up to $1,100 when comparing home and contents insurance quotes for identical properties.
“There are large differences in the price of insurance for similar homes, with similar risks, in the same suburb,” Fels said.
In one suburb, Medlow Bath, the price variance between the most and least expensive home and contents policy was a staggering $1,700.
Fels said that it was deeply concerning that there were such wide discrepancies in the cost of home insurance for the same property. He said that while you would expect prices to vary from suburb to suburb due to various risk factors including crime and population density, the fact that prices were so different for the same property suggested that there was not adequate competition in the industry.
“Consumers can save hundreds of dollars by shopping around each time they buy or renew their property insurance policy. However, evidence shows most don’t, and miss out on savings," he said.
The Insurance Monitor was established by the NSW Government in June 2016 to oversee the removal of the Emergency Services Levy from insurance prices after 1 July 2017.
“Insurers must drop residential property insurance prices up to 20%, on average, when the NSW Government removes its Emergency Services Levy,” Fels said.
If you're looking to purchase or switch home insurance policies, research and compare to make an informed decision.
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