Home insurance premiums almost double in northern Australia, Mozo research finds

Aerial shot of Rockhampton, Queensland.

Following the federal government’s announcement of a new $10 billion reinsurance pool, Mozo has done the maths on what the current situation is for residents of northern Queensland, the NT and northern parts of WA. 

Shockingly, statistics Mozo gathered in 2020 show that residents in northern Australia could be quoted as much as $4,675 per year for home and contents insurance. This is compared to an average quote of $1,908 per year for the rest of Australia.*

That means on average, residents of northern Australia could be paying more than $2,000 per year for home insurance than the rest of the country!

Mozo used 160,000 quotes from 44 different insurance companies for properties in northern Australia to work out these averages. Northern regions covered included the Pilbara, Rockhampton, the Kimberley, the Northern Territory, tropical north Queensland, Mackay and central Queensland.

Much needed reinsurance pool

Mozo spokesperson Tom Godfrey says taking out home and contents insurance in the Top End is a costly business. He says premiums are going through the roof, as insurance providers factor in risks such as floods and cyclones.

“The government’s announcement that it will establish a reinsurance pool backed by a $10 billion government guarantee is welcome news for homeowners up north, who have been battling significantly higher premiums than the rest of the country,” says Godfrey.

It is hoped that the pool will help mitigate risk for insurance providers in these areas and that this in turn will reduce premiums for residents. 

Godfrey adds that with extreme weather events likely to continue hitting northern Australia, this latest move from the federal government will go a long way to helping many Australians gain access to insurance cover for their home.

Check for flood cover

Finally, Mozo’s research found that one in five home insurance policies do not automatically include flood cover. Instead it is available as an optional extra. On top of this around 75% of policies do not cover storm surge.

It is important to note this when taking out a home insurance policy, especially if you live in a flood prone area. 

Want to see what policies are out there? Head to Mozo’s compare home insurance page to review what cover you could get for your home and contents today.

Compare comprehensive car insurance - rates updated daily

Search promoted car insurance below. Advertiser disclosure. Important information on terms, conditions and sub-limits.
  • Gold Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $500 - $1,850
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Online Discount Up To 15%
    Go to site
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes
    Choice of repairer
    tools icon
    No
    Choice of excess
    coins icon
    $500 - $5,000
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
    Go to site
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    No
    Choice of excess
    coins icon
    $800 - $2,000
    Agreed or market value
    Car coin icon
    Agreed

    Available discounts

    • No Claim Discount
    Go to site
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $400 - $2,200
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Online Discount $75
    Go to site
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $400 - $2,500
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • 20% Discount On Contents Insurance If Youi Car Insurance Also Held
    Go to site
    Details

*Mozo analysts reviewed product disclosure statements from 37 insurance underwriters in the Mozo database, on 8 October 2020. Mozo also conducted a Pureprofile survey of over 1,000 people between 23 January and 12 February 2020. Full results are available on request.

*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