Insurance up by 75%

I was wondering if anyone else has noticed a huge jump in insurance costs. Our PPOR building insurance last year was $531. We have just received a renewal notice for $933. That's just the building portion, contents are separate. My OH rang the company trying to find out why such a huge jump (about 75.5%) but couldn't really get any answers. We did a few online quotes with other insurance companies but they were all much of a muchness. Anyone else noticing this.

No doubt when our IP insurances come in we will find the same thing. It feels like expenses are rising all the time (rates etc.) but the rental return is pretty static at the moment.
 
They are passing on some govt imposed increase. But I was told the increase is 15% so not sure about the other 60%
 
yes, our building insurance for our PPOR has almost doubled. I did the online quote thing, and it seems they have all put their prices up. Car insurance was also up by a lot.
 
There have been a lot of big ticket natural disasters in the past year.
The oil spill fiasco isn't going to help, either.
Reinsurance rates are on the rise, margins for insurers are under pressure and their investment yields are down. Guess who takes up the slack and feels the pain?
We do.
 
I have noticed recently that some insurers are differentiating themselves by adding extra cover to their policies. For example I got a letter from mine that they were going to start including flood damage. This obviously affects the premium. So when shopping around try to take this into account.
 
My brokers contacted me this week about renewals for all my IP's plus business insurance. From memory, end result was IP policies down about 10%, business insurance down 15%. Same policies except increased default coverage with rising rents.

Alplant, are you in a natural disaster prone area of QLD?
 
No, we're not, not unless you count the occasional house falling into a mine shaft. :) We're in Ipswich.

We have found one insurer whose quote was more like the original. It was RACQ.
 
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