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Home and Contents Insurance premium increase


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31 replies to this topic

#1 Chalkie

Posted 26 March 2012 - 09:15 PM

ohmy.gif

Just received my insurance renewal today for home and contents insurance.

I nearly fell over.


Our premium has increased by 30%.  Last year we had a 20% increase and I thought that was horrible.

We live in Sydney, have never had a claim.  I think the sums insured are about right - and they have increased a little with indexation - but around 3% - not 30%.

The worst bit is that I have spent a couple of hours seeking other quotes from insurance providers and I cannot beat the current provider.

Next step is to increase my excess to see if that will reduce it a little.

Just wondering if anyone else has seen a huge increase this year?  Or did we somehow have cheap insurance before and now it is catching up?

#2 laridae

Posted 26 March 2012 - 09:28 PM

Yes - mine have gone up about 25%.  There were a lot of disasters last year.  I think everyones has gone up.

Kinda one of those things you just have to pay though.
Currently getting my house repaired under insurance after a water pipe started leaking in the wall.  1 room needed the wall replastered, 2 rooms
(downstairs) needed the ceiling re-plastered as they went moldy. All 3 need repainting & also part of the outside does.  Pretty sure it would cost more than I've paid in insurance so far to get it fixed, so I don't mind so much.

#3 FeralFP

Posted 26 March 2012 - 09:29 PM

Same here. Went up 20-25% last year, and then another 30% this year.

Both years I did a ring around and couldn't get a much better deal sad.gif


#4 dessiesgirl

Posted 26 March 2012 - 09:36 PM

Haven't had our renewal yet, but having been through a house fire 18months ago, i would happily pay double whatever they ask for!!

Haven't had our renewal yet, but having been through a house fire 18months ago, i would happily pay double whatever they ask for!!

#5 Chalkie

Posted 26 March 2012 - 09:38 PM

Thanks for the replies - at least I am not alone in my misery.

It is something that I won't do without, and I don't want to change the cover amounts, but I was shocked by the increase.

I suspect it is a combination of natural disasters here and overseas (Japenese tsunami and NZ earthquakes for example) as well as the cost of funding for insurers due to the European issues.  But even though I can understand why funding costs have increased - I am still gobsmacked by the extent of the increase.

I guess I am fortunate as I can afford to pay for it - but I am so worried about my pensioner income parents - how on earth are they going to afford such an increase on top of all the other utility increases?

Crazy.

Thanks again for your reponses, it is at least somewhat comforting to learn that our household wasn't singled out!

#6 Chalkie

Posted 26 March 2012 - 09:40 PM

QUOTE (dessiesgirl @ 26/03/2012, 10:36 PM) <{POST_SNAPBACK}>
Haven't had our renewal yet, but having been through a house fire 18months ago, i would happily pay double whatever they ask for!!


Sorry you have gone through that and thank goodness you did have insurance.

I wouldn't consider dropping ours, but I am still shocked at the increase.

#7 Spring Chickadee

Posted 26 March 2012 - 09:48 PM

Mine hasn't gone up by anything noticeable in the last 2 renewals , I'm with real insurance.

#8 Chalkie

Posted 26 March 2012 - 09:53 PM

Thanks Springchickadee I will look into them, I have only been phoning the major ones, GIO, NRMA, AAMI etc.



#9 FEdeRAL

Posted 26 March 2012 - 10:01 PM

Yep. Ours went up 25% too this year - the insurer decided to add floor cover to their home & contents. I got a few quotes online and all were comparable (within $50 difference) - some didn't even cover flood.

#10 Snack

Posted 27 March 2012 - 04:36 AM

mine went up 47% last year - I am in QLD so of course they used everything that happened here as an excuse.  I removed a few of the "extras" from our policy to get the cost down - the policy was almost $1500 - I nearly died ! I increased the excess, and lowered the overall value of the policy.

#11 Chalkie

Posted 27 March 2012 - 06:39 AM

Eek Snack 47%!!  I am going to phone today and see if I can reduce it a little by upping the excess.

Ours is over $1,500 but we have a fairly high sum insured which I think is fair due to the value of the home - we spent more than the insured amount on renovating so I have an idea of how much it would cost to do a total rebuild (less than renovating per square metre, but also the pool and garage etc) so I think the insured amount is OK.  We only have a small excess on the policy, must have put that there when we first took it out, so will up that a bit.


#12 fi73

Posted 27 March 2012 - 06:47 AM

Hi
Ours went up $500 from last year,I had made no claims so rang them up to talk about why it had gone up so much,.I understand about all the floods and natural disasters and realise some of the increase was due to these factors.However when I mentioned that I could get similair cover with another company for same price they were quick to reduce the premium by $400.It is always worth ringing them and speaking to them about the premium.
Fiona

Edited by fi73, 27 March 2012 - 06:47 AM.


#13 ~Sorceress~

Posted 27 March 2012 - 06:48 AM

I just paid our renewal yesterday after phoning around and being unable to beat it sad.gif . Just horrible sad.gif .

#14 Froggilicious

Posted 27 March 2012 - 06:51 AM

There has also been legislation change that came into effect feb 1 that now all insurance agencies must cover flood. So this may have an effect. I know I'm not looking forward to our renewal as we're in a high risk area. I have heard of one pensioner who's premium went up $1000, so she had to drop her insurance.

#15 Bluenomi

Posted 27 March 2012 - 08:10 AM

Apparently they reassess the price of home insurance in January so that's why people who have gotten renewals in the past few months have seen a big jump. Ours isn't due until November but I suspect it will be going up thanks to various floods, earthquakes etc.

It sucks but it is cheaper than paying for a new house if something happens to it

#16 samshine

Posted 27 March 2012 - 08:21 AM

We got our renewal late last year and it had gone up nearly 40% - we are in Tas.  

Over 4 years it had increased from $500 pa to $1300 pa - an $800 rise.  I understand with the recent events some increase, but not that much.  Interestingly my parents have a property, 4k down the road comparable size, contents and position and are with the same insurers yet their premium came at the same time, $400 cheaper.  Our insurance company weren't able to explain the discrepancy so we changed insurers.  

We ended up finding a policy $400 less with better cover.  So do try ringing around.  Good luck.

#17 Guest_bottle~rocket_*

Posted 28 March 2012 - 09:30 PM

We got our renewal recently and it went up 20% - so not too bad compared to PPs.

It was enough for me to shop around, although I haven't found anything much more competitive.

We do without accidental damage cover for contents as that seems to add quite a lot to the premium.

QUOTE (Froggilicious @ 27/03/2012, 07:51 AM) <{POST_SNAPBACK}>
There has also been legislation change that came into effect feb 1 that now all insurance agencies must cover flood. So this may have an effect. I know I'm not looking forward to our renewal as we're in a high risk area. I have heard of one pensioner who's premium went up $1000, so she had to drop her insurance.


That would explain why our insurance company added it to their cover - they didn't mention it was a legal requirement funnily enough!

#18 canuckmel

Posted 30 March 2012 - 07:14 PM

QUOTE (Chalkie @ 26/03/2012, 09:38 PM) <{POST_SNAPBACK}>
I guess I am fortunate as I can afford to pay for it - but I am so worried about my pensioner income parents - how on earth are they going to afford such an increase on top of all the other utility increases?


I work as a financial planner and it's scary how many of my older, pensioner clients have had to drop insurance altogether as they can't afford it.

I hate insurance, it's one of those expensive necessary evils I hate dealing with.


#19 lovemybabies

Posted 30 March 2012 - 07:24 PM

My renewal was over $2000! So I swapped to budget. Saved myself over $600 and have a lower excess. Took great pleasure in telling my insurance company of 15+ years, that I wasn't renewing with them and when they asked why I told them I was sick of having to ring them and squabble over the premiunm (I did alternative quotes last year and my company agreed to meet their price) and that they should take care of their existing customers. Not that it will make any difference but it made me feel good.



#20 Lifesgood

Posted 30 March 2012 - 07:32 PM

There was an item on ABC 7.30 tonight (the NSW edition) as premiums have risen so much this year.

#21 melhoneybee

Posted 01 April 2012 - 08:53 AM

Our home and contents insurance and car insurance for 2 cars all went up by around 25% despite us never claiming. We shopped around, found a better deal which saved us $1000 a year and swapped everything at once.
After calling the place we were insured with to cancel they offered us discounts but were still more than the one we moved to

#22 KylieY

Posted 01 April 2012 - 09:03 AM

Mine has gone up $150 and I thankfully found another provider that came in at a reasonable price. My girlfriend got her renewal on Friday and it had doubled!

#23 hopeful81

Posted 01 April 2012 - 09:32 PM

Just got ours with a huge increase. Eeek  ohmy.gif

We've made no claims and aren't in an area that floods. I think they are having to up the price to cover some of their payouts from the last 12 months or so.

#24 belwu

Posted 01 April 2012 - 10:13 PM

You should also be aware that there are a stack of taxes (state & federal) on your insurance - a lot of people aren't aware of this

#25 paris-stella

Posted 05 April 2012 - 05:15 PM

I got my renewal and it went up by nearly 30%. I rung my insurer (GIO) and explained how long I had been with them and I had never made a claim etc etc and they reduced the premium without reducing the cover. In the end they got it down to cheaper than what it was last year.

It cant hurt to ring your insurance company and ask for a discount. By ringing them I saved over $300.00 a year.




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