Escalating Home Insurance Costs Deepen Australia's Protection Gap

This surge in costs has led to a concerning trend where many households opt to reduce coverage or forgo insurance altogether, exposing themselves to significant financial risks in the event of property damage or loss. Factors contributing to these premium increases include heightened construction and reinsurance costs, more frequent and severe weather events, and widespread underestimation of property replacement values.

For home services business owners operating from residential premises, this underinsurance trend poses additional risks. Ensuring that both personal and business assets are adequately covered is essential to mitigate potential financial setbacks. It's advisable to regularly review insurance policies, accurately assess property values, and consult with insurance professionals to secure comprehensive coverage that aligns with current market conditions.