23 February 2026

Home Insurance Premiums Spike 50% in Five Years: What You Need to Know

In a recent report by ABC News Australia, the alarming rise in home insurance premiums has been brought to light, revealing a staggering 51% increase over the past five years. This data, analyzed by the firm Infinity, highlights the financial strain many homeowners are facing, particularly in regions prone to natural disasters.

Key Insights from the Video

The video features reporter Stephanie Farrier, who discusses the significant changes in home insurance costs across Australia. Here are some of the critical points covered:

• Rising Costs: In 2020, the average home insurance premium was just over $1,900. By October of the previous year, this figure had surged to nearly $3,000. The most affected areas are those with higher risks of natural disasters.

• Capital City Breakdown: Darwin tops the list as the most expensive city for home insurance, with premiums exceeding $4,000 annually. Brisbane and Sydney follow closely behind, while Adelaide offers the lowest premiums at just over $2,000.

• High-Risk Areas: Specific regions, such as Brisbane's West, are experiencing exorbitant premiums, with some homeowners facing quotes as high as $70,000 due to repeated flood damage.

• Government and Insurance Sector Responsibility: Queensland Premier David Chrisully emphasized the need for insurance companies to adjust their premiums in light of government infrastructure investments aimed at mitigating natural disaster risks. He called for a collaborative effort between the government and the insurance sector to ensure that homeowners are not left to bear the brunt of these rising costs.

• Mitigation Strategies: The Resilience Building Council provided actionable advice for homeowners to potentially lower their insurance premiums. This includes:

  • Installing ember guards and clearing flammable materials for those in high fire risk zones.
  • Securing roofing and adding protective measures to windows in storm-prone areas.
  • Using resilient materials for flooring and wall coverings to minimize damage from floods.

Key Takeaways

1. Significant Increase: Home insurance premiums have risen by 51% in the last five years, with the average cost now nearly $3,000.
2. Regional Variations: Darwin has the highest premiums, while Adelaide has the lowest.
3. Government Action Needed: Collaboration between the government and insurance companies is essential to address rising costs.
4. Homeowner Strategies: Implementing specific mitigation measures can help reduce insurance premiums.

This video serves as a crucial reminder of the financial challenges many Australians face regarding home insurance, especially in high-risk areas. By understanding these trends and taking proactive steps, homeowners can better navigate the complexities of insurance in an increasingly unpredictable climate.