A concerning number of Aussies have ‘ditched or downgraded’ their property insurance
As the cost of living continues to bite, a new survey has shown many Australians have chosen to swap, scrutinise, or ditch their home insurance policies.
Research conducted by comparison platform Finder surveyed 1,071 Australians to find out attitudes to home insurance as expenses continue to rise.
Of the more than half who had home insurance (636 of 1,071), the findings showed one in five – or 20 per cent – had switched their home insurance policy in the past two years to save money.
A further 3 per cent ditched or downgraded their policy, which Finder said was the equivalent of almost 370,000 Australians who would be left financially exposed if disaster were to strike.
The figures are, perhaps, unsurprising given the fact than more than two in three (68 per cent) of Australians say their home and contents insurance policy premiums have risen in the past 12 months.
That’s supported by Finder’s analysis which reported the median home and contents insurance premium surged by more than 19 per cent across the last 12 months – now at an all-time high of $2,434.
According to Tim Bennett, an insurance expert at Finder, many Australians are facing the “difficult” decision as to whether they keep their home coverage, potentially facing “more premium rises”.
He warned that “without insurance, an accident in the home or weather-related damage could be financially devastating”.
Stressing that “the family home is the largest financial asset for many Australians, so insurance must not be overlooked”, he also noted the peace of mind and financial protection afforded by adequate insurance coverage.
“Home repairs or rebuilding after a fire, flood, or other disaster can be incredibly expensive.
“Without insurance, you’d be on the hook for these costs entirely, potentially leading to financial ruin,” Bennett conceded.
Alongside the warning, Bennett did advise that home owners should ensure they aren’t overpaying for insurance, telling them they should not automatically renew their policy year-to-year, as “loyalty doesn’t pay”.
“You could find a better deal by shopping around and getting quotes from other insurers.”
“We found a huge price difference of $2,865 when we compared the cheapest annual policy and the most expensive for buildings worth $600,000,” he pointed out.