The cost of living has been a struggle for Australian businesses and households. Adding to this is the expected rise in home insurance, typically by about 10%.

We’ll share our tips on reducing the hit to your hip pocket, while still ensuring appropriate coverage.

Why premiums are increasing

Everyone’s insurance premium contributes to a pool of funds from which claims are paid out. When the cost of claims increase, everyone is impacted as the premiums that contribute to the pool need to increase, even if you haven’t made a claim. Meanwhile, inflation often affects insurance costs. Experts say in the wake of the pandemic, inflation may have a more significant effect in the next few years.

Increase your excess

The fast way to reduce your premium is to agree to pay more when claim on your insurance. For example, you might agree to pay the first $1,500 rather than $500, for a claim. However, you need to ensure you have the funds to pay the excess. Therefore, it is a balancing act between an insurance premium combined with an excess that you can afford to pay.

Estimate the value of contents accurately

The spectre of a higher premium is a useful prompt to review the value of your building and contents. Insurers automatically adjust that dollar value annually. Avoid assuming the rebuild cost will be the same as what you paid for your house.  We can help you figure out the right value so you don’t risk over or under insuring your property.

Keep your house safe

You may already have these measures in place, so consider this list a refresher:

• Regularly test your smoke alarms
• Deadlock doors and windows when you’re out
• Install a comprehensive security system
• Trim vegetation from windows, so burglars don’t use it as cover
• Maintain your plumbing, heating, and electrical systems to lower the risk of water and fire damage

Let us guide you on how to best protect your home, ensuring you have the right insurance policies for your needs.

If you would like to know more about home insurance premiums, please CLICK HERE, or contact us for more information.