Insurance premiums jump 15% in one major city as disasters hit homeowners

If you’ve noticed your home and contents insurance bill creeping up lately, you’re not alone—especially if you call a capital city home.

For some homeowners, the increases feel subtle. But for others, they’re facing a far more worrying trend.

One Australian city in particular is seeing a significant surge—and it’s leaving many residents questioning how much more they can bear.

The new epicentre of soaring insurance costs

According to Compare the Market’s economic director (and former Sunrise host) David Koch, the culprit behind Brisbane’s insurance price hike is clear: natural disasters—particularly the devastating flooding caused by ex-tropical cyclone Alfred earlier this year.

The aftermath of this event has left insurers with no choice but to raise premiums, with the average home and contents insurance quote in Brisbane now sitting at a hefty $2,914—well above the capital city average of $2,529.

But it’s not just a one-off event. The Climate Council, led by Tim Flannery, has long warned that Brisbane is one of Australia’s most vulnerable cities when it comes to natural disasters.

In fact, the city ranks as the fourth most at-risk federal electorate in the country, with areas like the city centre, New Farm, Newstead and Fortitude Valley all sitting on a flood plain.

The numbers are sobering: 12.7 per cent of properties in inner-city Brisbane are already considered ‘high risk’ for flooding.

The bigger picture: Is your home becoming uninsurable?

It’s not just about paying more—or some, the risk is that insurance could become completely unaffordable, or even unavailable.

The Climate Council has identified 10 federal electorates across Australia where the cost of repairing damage from natural disasters could reach one per cent of a home’s value each year.

In these areas, including three capital city electorates like Brisbane, insurance premiums are rising so fast that some properties may soon be ‘effectively uninsurable’.

This is a worrying trend, especially as Queensland continues to attract new residents from across the country.

Last year alone, nearly 26,000 people made the move to the Sunshine State, with most settling in Brisbane and the booming south-east corner.

With Brisbane’s median house price now topping $1 million (second only to Sydney), the stakes are high for homeowners and buyers alike.

Why are premiums so high?

Insurers set their prices based on risk, and in Brisbane, that risk is rising.

Flooding, storms and other extreme weather events are becoming more frequent and severe, in part due to climate change.

When insurers have to pay out more claims, they pass those costs on to customers in the form of higher premiums.

But it’s not just about the weather.

The influx of new residents, rising property values and the cost of rebuilding homes all play a role.

For example, Compare the Market found a staggering $1,965 difference between quotes for the same property in Bridgeman Downs, a northern Brisbane suburb.

That means shopping around can make a big difference to your bottom line.

How does Brisbane compare to other cities?

If you’re feeling the pinch in Brisbane, you might be envious of your friends in other capitals.

Adelaide boasts the cheapest average home and contents insurance at $2,234, followed by Melbourne ($2,260) and Perth ($2,346).

Meanwhile, Brisbane saw the biggest jump in premiums in the June quarter, with an average increase of 2.29 per cent.

Have your say

Home insurance is becoming more complex and costly for many Australians. Are you feeling the squeeze from rising premiums? Have you discovered ways to save, or are you concerned about the future of insurance in your suburb?

We’d love to hear your experience in the comments below—whether you’re a long-time Brisbane resident or watching from afar, your perspective can help fellow readers stay informed and prepared.

Also read: Millions face car insurance price hikes—does your state pay the most?