Australia is facing more frequent natural disasters than ever, reshaping how insurers price risk. From floods to fires to hailstorms, climate change and home insurance are now inseparable — and the financial impact is growing.
Premiums Rising Faster Than Inflation
Data from the Actuaries Institute (2025) shows home insurance premiums have risen by 28% in two years, outpacing wage growth and inflation.
Regions like Northern NSW and Queensland floodplains have seen premiums soar by over 70%, forcing some homeowners to go uninsured.
“We’re seeing climate risk translate directly into cost,” says ICA CEO Andrew Hall.
“Areas repeatedly hit by extreme weather are becoming uninsurable without major adaptation.”
The Broader Cost Beyond Premiums
The cost of climate change and home insurance goes beyond higher premiums. More disasters mean delayed repairs, material shortages, and longer rebuild queues. Rising claims volumes drive up construction costs, widening Australia’s protection gap and increasing household vulnerability.
What Happens When Areas Become ‘Uninsurable’
Some Australian regions are now at risk of becoming uninsurable as climate damage intensifies.
When premiums climb beyond reach or insurers withdraw entirely, property values drop and banks hesitate to approve mortgages. Families are left exposed, and each disaster hits harder because recovery support becomes slower and more limited.
How myVal Helps You Adapt
While myVal can’t change global weather patterns, it helps you manage climate risk personally by:
- Identifying coverage gaps in your policy for flood, bushfire, or storm.
- Keeping a digital record of valuables to accelerate claims after disasters.
- Sending location-based alerts for recalls or severe weather warnings.
- Offering preventive maintenance reminders that reduce damage likelihood.
Resilience starts with readiness.
Download myVal today and stay one step ahead of climate change challenges.
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