I understand my car insurance policy increased in price ~$100, but the value increased 10k.
My new house insurance policy has increased by 59% and the house value has only increased ~8k and contents ~4k.
I live in a rural area, not affected by floods or bushfires. Never had any insurance claims, nothing has changed since last policy.
As usual, I obtained other quotes, and they're nearly double that of my new policy.
I expected a price increase, but nothing like this.
Shop around to avoid the lazy tax
Not sure if OP did any editing but he/she said this already "As usual, I obtained other quotes, and they're nearly double that of my new policy."
My bad…..
Just because you have not been affected by floods or fire does not mean that you are not in a flood zone or a fire zone for insurance calculations.
There have been allot of posts about builders increasing new build costs by 15to20%, so the cost of replacing the house would have increased by at least that %.
Insurance payouts have been up in the last few years and the companies need to recover the increases payouts so they can survive and payout in the future so this would also cause an increase.
When insurers have to make ginormous payouts for things such as floods, they increase the premiums to recoup that money. Not just for the people who have made a claim, but right across the board.
I've had house insurance for many years. Have never claimed on it. Many thousands of dollars wasted. Makes me wonder if it's even necessary to have it.
Try self-insurance if you have the funds. Say your house burns down (could be very remote but happens), if you've got the funds to easily rebuild, then no need to take out insurance.
If you have a mortgage, it will be one of the T&Cs that you have insurance on the property. If no mortgage then it's certainly up to you if you want to take the risk of the property being destroyed or damaged.
Hate how our rates have to increase because of people living in flood prone areas. It's almost if we're paying for them.
Sell your car and use the gain in that to pay for it.
but the value increased 10k
True but doesn't necessarily mean that the payout would reflect current market value.
my home insurance with budget direct has also gone up 47% from last year. I did try doing a new quote with them and the new quote is also $200 more than my renewal so for me it's not the lazy tax. Probably unfortunate that my postcode is in the flood zone, even though I haven't claimed anything ever. Trying to shop around but they're still the cheapest for my insured sum so not sure what to do, either cop it or not insure the house
Material and labour costs have increased along with supply chain costs, so this will drive some of the increase.
No doubt reinsurance costs (insurance for insurers) have increased; while those in cat prone areas will pay more for it, everyone will participate in the increase.
Insurers have also been hit by bushfires, covid, then floods so some across the board increases will be necessary to rebuild their capital/improve profitability.
Increases will be driven by overall average increase and for specific risk factors (e.g. location). E.g. cost to rebuild your property due to remoteness needs to be taken into account.
Try taking out the biggest excess - say $2k and see what savings you get.