My home insurance premium leapt to almost $7000. Here’s what I did

September 12, 2026 — 5:00am

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Have you had the “pleasure” of opening your new house insurance premium envelope or email yet? “Panic” might be a more apt word.

Mine was up 27 per cent on last year. It was 9 per cent higher the previous year, and jumped 7 per cent the one before that. But that followed a 23 per cent leap in 2023.

Guess what? That’s just about the norm. Premiums have increased 51 per cent across Australia over the past five years, says data analytics firm Finity.

The average home insurance premium rose to $2938 by October 2025, up from $1940 in 2020. And, yes, that’s far faster than inflation. Insurance costs have been one of the contributors to the rising consumer price index.

In my game, I know this. But my latest house and contents insurance premium, when it landed, shocked even me. It was nearly $7000.

This is how your bank will curb your card’s perks and points next month

Nicole Pedersen-McKinnonMoney contributor

The spike in premiums is linked to both natural disasters and catastrophe losses, and construction cost inflation. And let me say that I live regionally and many regions, exposed to flood, cyclone and bushfire, have seen higher increases.

Indeed, they are higher than capital........

© The Age