It is a roll call that would leave any customer shaking their head. 800% increase in Queensland, 600% hikes in Victoria, and 900% blow-out in New South Wales in home insurance premiums.
Budget Direct’s CEO Ram Kangatharan says home owners shouldn’t just accept the crippling hikes in their home insurance premiums, and start shopping around.
The jump in home insurance premiums being felt by many is due to a number of factors, including the devastating floods of 2011.
“The fact is, more than 90% of Australia is not at risk of flooding, so why should people have to pay for flood cover if they don’t want or need it? Many insurers have made flood cover mandatory for their customers whether they want it or not.” Mr Kangatharan says.
He goes on to say. “We’re hearing stories of customers who live at the top of a hill which has never flooded and has no chance of flooding, but their current insurer is refusing to allow them to opt-out.
Budget Direct doesn’t offer flood cover and those customers who don’t need it don’t have to pay for it.”
The CEO welcomes the Courier Mail’s investigation (7/1/13) in to the increase in premiums, and hopes it will result in many homeowners taking another look at their current insurance and insurer.
“The truth is that there are insurers out there that will give you the option to opt-out of flood cover, so customers need to shop around.
Naturally, we’re not saying that people should opt of out of flood cover if they live in a flood prone area, we’re saying shop around to find the best policy to suit your needs,” Mr Kangatharan said.
According to a recent CANSTAR report:
- Insuring a $500,000 home in Melbourne and regional VIC is up 31% on average.
- The largest single increase for a $500,000 home was 682% in Melbourne and regional Victoria.
- Insuring a $500,000 home in Sydney and regional NSW is up 32% on average.
- The largest single increase for home and contents insurance valued at $150,000 was 918% in Sydney and regional NSW.
- The largest single increase for $75,000 contents cover in Queensland was 828%.