Home insurance is on the chopping block with many Australians feeling the pinch of rising expenses, according to new research by Finder, a financial comparison website company.
A Finder survey of 1,071 respondents – 636 of whom have home insurance – revealed one in 5 (20%) have switched their home insurance policy in the past two years in a bid to save money. A further one in 10 (9%) switched for better coverage.
Worryingly, 3% ditched or downgraded their policy – equivalent to almost 370,000 Australians who would be left financially exposed if disaster strikes.
The research revealed almost half (47%) of policyholders auto-renewed their plan, potentially missing out on thousands of dollars in savings. This comes as more than 2 in 3 (68%) Australians say their home and contents insurance premiums have gone up in the past 12 months.
Mr Tim Bennett, an insurance expert at Finder, says Australians are facing the difficult decision as to whether they keep their coverage or prioritise other bills.
"Thousands have abandoned home insurance instead of facing more premium rises.
"Without insurance, an accident in the home or weather-related damage could be financially devastating."
The median home and contents insurance premium surged by more than 19% in the last 12 months, reaching an all-time high of A$2,434 ($1,640), according to Finder analysis.
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Survey: Have you done any of the following with your home and contents insurance policy in the last two years?
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% of respondents
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Downgraded to building-only cover
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1%
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Cancelled because I couldn't afford it
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2%
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Switched for better coverage
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9%
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Switched to save money
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20%
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Auto-renewed
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47%
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Did not do any of the above
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30%
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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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