Key Takeaway

A Brisbane homeowner recently quoted $70,000 per year for home insurance illustrates the accelerating affordability crisis facing Australian property owners in high-risk areas. Premiums are surging nationwide due to escalating climate-related claims (floods, cyclones, bushfires), rising reinsurance costs, and insurers withdrawing from or repricing high-risk postcodes. While this extreme quote reflects properties in flood-prone or cyclone-exposed zones, even low-risk areas are seeing double-digit annual increases as insurers recalibrate risk models to account for more frequent and severe weather events.

Why Premiums Are Climbing So Sharply

Australian home insurance premiums have risen dramatically since 2020, with some regions experiencing increases of 20 to 40 per cent annually. According to the Insurance Council of Australia, insurers paid out record claims following the 2022 east coast floods, the 2021 Queensland and New South Wales storms, and repeated cyclone seasons in the north. These events have forced insurers to reassess risk across the country, not just in obviously flood-prone areas.

Reinsurance costs (the insurance that insurers themselves buy to cover catastrophic events) have also climbed steeply. Global reinsurers now view Australia as a higher-risk market due to climate change, and they pass those costs down to local insurers, who in turn pass them to policyholders. Properties in Brisbane’s flood-prone suburbs, coastal Queensland, and low-lying areas of northern New South Wales face the steepest rises, with some owners quoted premiums that exceed their annual rates or even mortgage repayments.

The $70,000 quote reported from Brisbane likely applies to a property with significant flood or cyclone exposure, possibly with a history of claims or located in a postcode that insurers now classify as uninsurable under standard pricing models. While this figure is an outlier, it signals the wider trend: insurance is becoming unaffordable or unavailable for a growing number of Australian homeowners.

What Homeowners Can Do

If you are facing a sharp premium increase or an unaffordable quote, consider these steps:

  • Shop around: premiums vary significantly between insurers. Use comparison sites or a licensed insurance broker to obtain multiple quotes. Some insurers specialise in high-risk properties and may offer more competitive pricing.
  • Review your sum insured: over-insurance inflates premiums. Ensure your sum insured reflects the genuine rebuild cost of your home, not the land value or market price.
  • Increase your excess: accepting a higher voluntary excess reduces your premium. Weigh this against your ability to pay the excess if you claim.
  • Mitigation works: flood barriers, elevated floor heights, cyclone-rated shutters, or bushfire-resistant materials can lower your risk profile and may qualify you for premium discounts. Some insurers offer lower premiums for properties that meet resilience standards.
  • Ask about government schemes: the Northern Australia Reinsurance Pool (a federal initiative launched in 2022) was designed to reduce premiums in cyclone-prone areas of Queensland, the Northern Territory, and Western Australia. Check whether your postcode is eligible and whether your insurer participates.
  • Seek independent advice: a licensed insurance adviser can help you navigate your options, compare Product Disclosure Statements (PDSs), and identify cover that matches your risk and budget.

Read also: Australian Homeowners Drop Coverage as Natural Disaster Insurance Costs Rise

When to Complain

If you believe your premium increase is unjustified, or if your insurer has cancelled your policy without clear explanation, you can lodge a complaint with the Australian Financial Complaints Authority (AFCA). AFCA provides a free, independent dispute resolution service for insurance matters.

Before lodging a complaint, read your PDS and the Target Market Determination (TMD) to understand the insurer’s stated risk approach and the circumstances under which they can adjust premiums or decline renewal. Document all communications with your insurer and keep records of quotes from other providers for comparison.

The Broader Picture

The home insurance affordability crisis is not limited to Brisbane or Queensland. Coastal New South Wales, parts of Victoria, and fire-prone regional areas across the country are all experiencing premium pressure. As climate risk continues to reshape the insurance market, Australian homeowners will need to consider property location, resilience measures, and cover trade-offs more carefully than ever before.

This is general information only. It does not take into account your objectives, financial situation, or needs. Before acting on this information, consider whether it is appropriate for you, read the relevant Product Disclosure Statement (PDS), and consider obtaining personal advice from a licensed insurance adviser. Cover, exclusions, and premiums vary by insurer, location, and property characteristics. Always confirm current terms with a licensed adviser before making a decision.