As communities recover from ex-Tropical Cyclone Alfred, Compare the Market has drawn attention to gaps in home and contents insurance coverage across Australia.
According to the Insurance Council of Australia (ICA), insurers have already received more than 44,000 claims following the weather event.
While damage varies across different regions, concerns about widespread severe wind damage did not materialise. Instead, the majority of claims relate to storm-driven water damage, food spoilage from power outages, and localised flooding.
Insurance providers have mobilised response teams in affected areas, including Coffs Harbour, Lismore, Ballina, and Tweed Heads in New South Wales, as well as Redlands, Hervey Bay, Logan, Brisbane, and the Gold Coast in Queensland. To meet demand, insurers have also increased the number of claims consultants and sourced builders from other states.
Compare the Market found that a significant portion of Australian households lack home or contents insurance.
A survey commissioned by the company in July 2024, involving more than 1,000 Australians, found that 20.1% of respondents do not have home or contents insurance for any of their possessions. Another 33.1% reported having partial coverage, while only 42% indicated that all their valuables were insured.
When asked about their most valued possessions, respondents identified their cars (15.2%), family photo albums (14.9%), and personal documents (13.7%) as their top priorities. At the same time, they expressed the greatest concerns over burglary or theft (23.9%), fire damage (23.6%), and water or flood damage (14.2%).
Separate research from Finder suggested that many Australian homeowners are facing increased insurance costs. A study conducted in November 2024 found that 69% of insured homeowners had experienced a premium increase over the past year, affecting approximately 6.4 million households. It also revealed that 9% of respondents were unsure whether their insurance costs had changed, indicating a potential gap in consumer awareness regarding policy expenses.
Adrian Taylor, Compare the Market’s executive general manager of general insurance, emphasised that insurance could provide financial protection against these risks – something insurers and brokers could remind their customers.
“Home and contents insurance can help pay for damages and incidents that affect your home or belongings from any listed or defined events such as fire, theft, or storm damage – which are all too common occurrences in Australia,” he said.
He also advised homeowners to ensure their policies reflect the true value of their property and belongings to avoid underinsurance.
“Reviewing your policy before it renews can help ensure you have the right coverage and potentially save money,” he said. “If a more cost-effective policy meets your needs, switching providers may be an option, and any unused premium could be refunded, less any applicable cancellation fees.”
