Escalating Home Insurance Costs Deepen Australia's Protection Gap
Escalating Home Insurance Costs Deepen Australia's Protection Gap
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Australian homeowners are facing a growing protection gap as escalating home insurance premiums render adequate coverage increasingly unaffordable.
Recent data indicates that average home insurance premiums have risen by 16% over the past year, with some insurers implementing hikes exceeding 30%.
This surge in costs has led to a concerning trend where many households opt to reduce coverage or forgo insurance altogether, exposing themselves to significant financial risks in the event of property damage or loss. Factors contributing to these premium increases include heightened construction and reinsurance costs, more frequent and severe weather events, and widespread underestimation of property replacement values.
For home services business owners operating from residential premises, this underinsurance trend poses additional risks. Ensuring that both personal and business assets are adequately covered is essential to mitigate potential financial setbacks. It's advisable to regularly review insurance policies, accurately assess property values, and consult with insurance professionals to secure comprehensive coverage that aligns with current market conditions.
Published:Monday, 23rd Feb 2026 Source: Paige Estritori
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Knowledgebase
Term Life Insurance: A form of life insurance that is a pure protection policy with no cash or maturity value which lasts for a specific length of time, called a term.
