Living in a danger zone? See how much home insurance could soar!

For many, the dream of home ownership is often accompanied by the necessity of home insurance. It is a safety net that provides peace of mind against unforeseen disasters. However, for those living in areas prone to natural calamities, this safety net is starting to feel more like a financial burden.

Take the case of Andy McCarthy from Victoria’s Gippsland region. Nearly a year after a severe storm wreaked havoc on his property, McCarthy has been hit with another blow – his insurance premiums have increased.

Not only that, they have soared to 250 per cent more than what he paid the previous year. ‘There must be a mistake here but no, it was literally a 250 per cent increase year on year,’ he expressed his disbelief to 9News.

Looking into reports, McCarthy’s experience is not an isolated case. The Australian Bureau of Statistics (ABS) reports that, on average, insurance premiums have surged by 11 per cent over the past 12 months.

For homeowners like McCarthy, who have had to make claims for storm damage, the hike in premiums is even more pronounced. ‘It’s (now becoming) a choice of putting food on the table or paying your insurance,’ he lamented, highlighting the stark reality many are facing.

Experts are sounding the alarm that this trend is not reversing anytime soon. With millions of homes at risk from natural disasters such as bushfires and floods, insurance premiums are expected to continue their upward trajectory.

home insurance
Insurance premiums are anticipated to keep rising.

‘Home and contents insurance was the first essential item people stopped paying for when things get tough,’ points out Australian Council of Social Service chief executive Cassandra Goldie.

Amidst growing pressure, the federal government is being urged to intervene. Following a senate inquiry last year, recommendations were made for the Australian Competition and Consumer Commission to monitor prices and work towards making premiums more affordable.

In the meantime, Insurance Council of Australia executive director Andrew Hall advises homeowners to be proactive in shopping around for a better deal. He also suggests reaching out to insurers to inquire about payment plans or considering an increase in the excess to help reduce premiums.

We would love to hear from you. Have you experienced a significant increase in your home insurance premiums? How have you managed these rising costs? Share your stories and strategies in the comments below.

Your insights could help a fellow member of the YourLifeChoices community navigate these turbulent financial waters.

Also read: Wild weather is putting the future of home insurance in doubt

Floralyn Teodoro
Floralyn Teodoro
Floralyn covers different topics such as health, lifestyle, and home improvement, among many others. She is also passionate about travel and mindful living.

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