2024 home insurance in Australia: trends and predictions
Heading into 2024, the home insurance market in Australia is undergoing some exciting changes. This year brings a blend of technological innovation and a stronger focus on climate resilience, reshaping the way Australians protect their homes.
So let’s jump in and take a look at some trends we think will shape the home insurance industry in 2024!
1. Smart home tech in home insurance: a triple win!
The home insurance scene in Australia is getting a bit of an upgrade, thanks to smart home technology. Take Honey Insurance, for example. They're not just offering home insurance; they're also throwing in smart home kits. These aren't your average gadgets; they're designed to keep an eye out for fires, leaks and intruders.
The best part? These kits can lead to savings on your insurance premiums. Because these devices lower the risk of incidents, insurers are willing to cut you a deal on your premium. And let's not forget the convenience factor – no need to shop around for these devices, as they come included with your insurance policy.
So, what's in it for you? You save on home insurance, while getting some cool tech AND protecting your home. That's what we call a win-win-win!
Prediction. By the end of 2024, it wouldn’t be surprising to see one of the big names in Australian home insurance offering something similar to Honey's smart tech offering.
2. Rising tides, rising risks: home insurance in disaster-prone areas
The pattern of severe, frequent insurance events like those caused by ex-Tropical Cyclone Jasper in Far North Queensland is becoming more common.
APRA has observed that smaller insurers are already withdrawing from high-risk areas in Australia, reducing competition and limiting consumer choices. This situation is reminiscent of Florida, where the entire state has experienced large-scale withdrawals by insurers due to increasing climate risks.
Prediction: While we may see some smaller insurers adjust their presence in specific areas of Queensland, it's unlikely that we'll experience major disruptions akin to what happened in Florida where significant insurers exited entire regions. Nonetheless, it's a situation worth monitoring in 2024.
3. Building resilience with climate conscious coverage
It’s not all doom and gloom, as the industry is making strides in climate resilience. Through initiatives like those from the Insurance Council of Australia, homeowners are being encouraged to adopt measures like bushfire-proofing. These steps not only safeguard homes but can also lead to perks like lower insurance premiums, showcasing the industry's dedication to proactive, environment-friendly practices.
Prediction: An Australian insurer is likely to launch a new policy that clearly defines and offers significant premium reductions for homeowners who implement certain certified climate-resilient improvements.
Looking ahead, it’s clear that the home insurance industry is due for some unprecedented adaptation and growth. It's an exciting time to explore what these innovative insurers have to offer. From Honey's smart home integration to QBE's focus on environmental sustainability post-damage, and Youi's inclusion of counselling coverage for traumatic events, there's a range of forward-thinking options available for today's homeowner.
Smart tech and accident prevention
Honey Home and Contents Insurance* *
- Includes smart sensors to help avoid mishaps
- Up to 8% discount each year for using smart sensors
- Flood cover included as standard
Key details: Our top pick this month is the combined policy from tech-savvy provider, Honey. As a tech-led company focused on accident prevention, Honey provides customers with smart home sensors valued at around $250. The sensors can help alert customers to mishaps such as fires, water damage and theft in the home. Plus, by using them, you can get up to an 8% discount on your premium each year!(T&Cs apply). Just make sure you activate your smart sensors within 28 days of receiving them and keep them active throughout the year. Besides providing smart tech, Honey’s policy includes flood cover as standard as well as cover for other events such as damage caused by an animal, storms and theft. Remember to read the PDS for precise cover limits and exclusions, before signing on the dotted line. Underinsurance protection isn’t included so ensure the sum insured for your property and contents will be adequate in the event of a claim.
Home and contents insurance that includes trauma cover
Youi Home and Contents Insurance**
- Flood cover included as standard
- Cover for fire, theft and storms
- Cover for counselling services after a claim
Key details: Voted to the top for its Outstanding Customer Service at the 2023 Mozo People’s Choices Awards, Aussie insurance provider Youi must be doing something right. Youi’s combined Home and Contents Insurance policy includes flood, fire, theft, and storm cover. Plus, if you do need to make a claim after a traumatic event, the policy also includes up to $1,500 worth of cover for counselling services per household member. Up to $1,000 pet cover is also available as an optional extra, going toward vet fees if your cat or dog is injured due to an eligible household accident. Just be aware this policy doesn’t come with underinsurance protection so be sure to adequately estimate the market value of your home and contents.
Home and contents insurance with environmental upgrade cover
QBE Home and Contents Insurance**
- 10% online policy discount (T&Cs)
- Up to $30 million legal liability cover (T&Cs)
- Underinsurance protection for up to 30% sum insured (T&Cs)
Key details: This award-winning policy from QBE won in the Exceptional Value Home & Contents Insurance^ and Exceptional Value Landlord Insurance^ categories at the 2023 Mozo Experts Choice awards, and it’s not hard to see why. This flexible policy comes with all the standard cover you’d expect, with some handy built-in features, such as environmental upgrades after damage cover and $30 million in legal liability (eligibility criteria applies). New policies purchased online could receive a 10% discount (with conditions). Just be aware that if you choose to pay monthly, you’ll be paying a bit more than if you choose an annual plan.
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Home Insurance Awards