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Sign the petition for fair and transparent home insurance

To the Assistant Treasurer, the Hon Daniel Mulino MP,

 

Home insurance premiums are rising, but insurers aren't giving consumers clear explanations about why they're paying more.

 

I call on the Government to make home insurance fairer and more transparent by requiring insurers to explain premium increases, show how consumers can reduce costs through risk mitigation, and end unfair charges for paying in instalments

 

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Home insurance premiums are rising, but insurers aren't explaining why

 

Home insurance is becoming increasingly expensive. Many households are facing significant premium increases, often without any clear explanation from their insurer about why they're being asked to pay more.

CHOICE analysed 75 home insurance renewal notices and found that not a single notice clearly explained why an individual consumer's premium had increased. Instead, consumers were left with generic explanations that did little to help them understand rising costs. 

To make matters worse, research by the General Insurance Code Governance Committee found that 12 out of 20 insurers charged extra for paying in installments, effectively punishing people who can't afford to pay their entire annual premium upfront.

With growing risks from floods, bushfires and other extreme weather events, home insurance is more important than ever. For many Australians, going without insurance simply isn't a risk they can afford to take. It's an essential financial safety net that protects their homes if disaster strikes.

As premiums continue to rise, households are being forced to pay more for this essential protection, often without understanding why. Consumers shouldn't have to choose between paying increasingly unaffordable premiums and leaving their homes unprotected.

Insurers should be required to clearly explain why an individual's premium has increased, be upfront about all additional charges and ensure consumers aren't unfairly penalised for how they pay.

It's time to demand for fair and transparent home insurance

FAQ

Insurers can generally set their own premiums based on factors such as the location of your home, your risk profile and the cost of rebuilding. While insurers must provide certain information about your policy and premium, they aren't required to clearly explain why your individual premium has increased or how different factors have contributed to that increase. Insurers can also charge customers more for paying their premiums monthly rather than annually.

CHOICE is calling on the government to introduce stronger rules to make home insurance fair and transparent.

We want insurers to clearly explain why a consumer's premium has increased, including the factors driving the increase, how much they contribute to the final price and what consumers can do to reduce their risks and potentially lower their premiums. This includes providing practical information about measures people can take to protect their homes against floods, bushfires and other natural hazards.

Insurers should also be required to clearly disclose any additional charges for paying monthly, so consumers can easily understand and compare the total cost of their insurance. Consumers deserve to know what they're paying for and shouldn't be unfairly penalised simply because they can't afford to pay a year's insurance upfront.

If your premium has increased, contact your insurer and ask what's driving the increase. You can also check whether your policy still meets your needs, compare quotes from other insurers and ask whether you're eligible for any discounts.

It's worth checking whether paying annually or monthly changes the total cost of your insurance. Some insurers charge more for instalments, so make sure you understand the difference before renewing.

While shopping around may help you find a better deal, consumers shouldn't have to switch insurers just to get a fair price or a clear explanation of what they're paying for.

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