Your Home Insurance Bill Has Gone Up. Here’s Why, and What You Can Do About It

If your home insurance renewal landed in your inbox recently and made you wince, you’re not alone. Across Australia, premiums have been climbing steadily for years, and many households are now asking whether they can still afford adequate cover.

The Numbers Are Stark

Home insurance premiums have risen nearly 50% over the past five years, and it hasn’t slowed down, the average household premium increased by around 14% in 2025 alone, with some areas seeing rises closer to 17%.

Why Is This Happening?

The main drivers are largely outside any individual insurer’s control. Natural disasters have become more frequent and more costly, and when insurers pay out billions in claims, those costs eventually flow through to premiums. Additionally there has been a rise in construction costs, through labour and materials, so the pressure on premiums becomes easier to understand, even if it’s no less frustrating.

With half of insured Australians already concerned that climate-related risks could make insurance unaffordable or unavailable in their area, the pressure is being felt all over the country.

What Can You Do?

The worst response to rising premiums is to quietly cancel cover or let your policy lapse — particularly if you have a mortgage. Here are some practical steps worth considering:

• Review your sum insured. Make sure it reflects what it would actually cost to rebuild your home today, not what it was worth five years ago.
• Don’t just auto-renew. Insurers often offer better rates to new customers. Shopping around, or asking for a review can make a real difference.
• Bundle your policies. Combining home, contents, and car insurance with one provider can sometimes unlock meaningful savings.

We Can Help

Navigating insurance on top of everything else can feel overwhelming. We can help point you in the right direction and connect you with insurance options that suit your situation. Get in touch to chat through your options.

References: https://www.insurancebusinessmag.com/au/news/property/rising-home-premiums-deepen-insurance-protection-gap-across-australia-564828.aspx