Accidental damage has emerged as the primary reason behind home and contents insurance claims in South Australia, according to recent data released by RAA Insurance, as the broader Australian market contends with rising premium costs linked to climate risk and inflation.
The insurer reported that accidental damage accounted for 35% of all home insurance claims lodged since the start of the financial year. Other common claim categories included:
RAA Insurance noted that the accidental damage category includes claims for a range of frequently used electronics, such as televisions, laptops, and mobile phones.
Jess Lyons, head of claims at RAA, said this optional coverage continues to play a significant role in consumer protection.
“Since July last year, our members have lodged more than 14,000 home insurance claims – and the most common reason for claiming is accidental damage,” she said. “Families invest significantly in items like TVs and laptops, and we all know how easily accidents can happen, leading to them needing to be fixed or replaced.”
Lyons said around 37% of customers have not included accidental damage as part of their policy and advised reviewing coverage details.
“Water damage and storm damage are also common claim causes, so we always encourage homeowners to keep their home well maintained,” she said. “Keep your gutters clear, ahead of wet weather, and make sure water drains away from your house.”
RAA also advised that homeowners notify their insurer about any new purchases to verify coverage under existing policies.
Meanwhile, across the country, home insurance affordability is becoming a more pressing issue.
A recent survey by Finder, conducted in November 2024, found that nearly 70% of policyholders reported an increase in their home insurance premiums over the past year. An additional 9% were unsure whether their premium had changed.
Finder insurance specialist Peta Taylor attributed the increases to higher claims costs associated with extreme weather events.
Separate research from the Actuaries Institute, based on data compiled by Finity Consulting, showed that affordability stress related to insurance premiums affected 1.6 million households by March 2024 – a 30% rise compared to the previous year. The report defined affordability stress as spending over one month’s gross income on home insurance.
According to the report, households now spend the equivalent of 9.6 weeks of income annually on home insurance, with 15% of policyholders falling into the affordability stress category.
To manage these costs, Taylor recommended strategies such as paying premiums annually, increasing excess levels, or comparing policies across different providers. She added that competitive pressures are leading insurers to offer incentives such as reduced premiums, smart home technologies, and loyalty rewards for switching.
