Property Buzz


One in five Australian home insurance policyholders have switched their coverage in the past two years to save money, according to new research by comparison site Finder.

The survey of 1,071 respondents, including 636 with home insurance, reveals that 20% have changed their policy to reduce costs, while 9% switched for better coverage.

Alarmingly, 3% of policyholders have either cancelled or downgraded their coverage, equating to approximately 370,000 Australians who now face significant financial risk in the event of a disaster.

Tim Bennett, insurance expert at Finder, expressed concern over this trend.

“Thousands have abandoned home insurance instead of facing more premium rises,” Bennett said.

“Without insurance, an accident in the home or weather related damage could be financially devastating.”

The research comes as 68% of Australians report an increase in their home and contents insurance premiums over the past 12 months.


Finder’s analysis shows the median home and contents insurance premium has surged by more than 19% in the last year, reaching a record high of $2,434.

Despite the rising costs, Bennett emphasised the importance of maintaining coverage.

“Home repairs or rebuilding after a fire, flood, or other disaster can be incredibly expensive,” he said.

“Without insurance, you’d be on the hook for these costs entirely, potentially leading to financial ruin.”

The survey also revealed that 47% of policyholders automatically renewed their plans, potentially missing out on significant savings.

Bennett urged Australians to shop around for better deals rather than automatically renewing with their current insurer.

“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 noted.

The research highlights a concerning trend of Australians compromising on essential financial protection due to cost-of-living pressures.

Bennett stressed the importance of home insurance, particularly given that the family home is often the largest financial asset for many Australians.

As insurance costs continue to rise, experts advise policyholders to compare quotes from multiple insurers and consider adjusting their coverage to balance protection and affordability, rather than abandoning insurance altogether.

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