One item is becoming increasingly unaffordable for Australians, and with prices expected to climb even higher, they may abandon it altogether.
As soaring inflation and high interest rates batter households, the report released by the Actuaries Institute on Monday found that the median home insurance premium had risen to $1894 a year.
Twelve per cent of households were now considered “affordability stressed”, where the cost of taking out home insurance was more than a month’s household gross income, the report stated. While the price of premiums have increased significantly, real household incomes have also been eroded as a result of high inflation, meaning that home insurance is becoming prohibitively expensive for many households.
Home insurance premiums have jumped by 50 per cent in some locations. Picture: Facebook via NCA NewsWire Affordability pressures were also acute in North Queensland and Western Australia due to the higher likelihood of cyclones. Researchers found that to close the insurance gap and fully insure these households would cost $1.5bn annually or $8800 per household.
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