Victorian Insurance Premiums Spike Amidst Industry Turbulence

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Michael Keynes, a spokesperson for VMIA, stated that the raises, which see premiums leaping by an average of 53%, are a necessary measure to accommodate the recent flood of claims. "A record number of domestic building insurance claims have been resolved over the past year." Since July 1, the insurer has settled over 4000 claims.

Specifically, premiums for new single and multi-unit constructions will surge by 65%, while structural and non-structural renovations along with swimming pools will face a 20% rise. The charges for owner-builders are also set to increase by 65%.

Keynes attributes this spike to several intersecting issues: "We are dealing with the compounded effects of builder insolvencies, high inflation, and an ongoing shortage of skilled workers, all of which drive up building costs. As a result, VMIA needs to adjust premiums to ensure continued protection for homeowners when builders can't complete or rectify constructions."

In response, industry watchdogs, such as the Housing Industry Association (HIA), have been vocal about their objections. Keith Ryan, the executive director of HIA Victoria, warned that these increased premiums will further dent housing affordability in the state. "Victorian home builders and their clients are already grappling with soaring costs. This increase is an additional burden which hits new homebuyers the hardest," Ryan said in a statement.

The new premiums add to the already heavy financial load confronting new home buyers. "In Melbourne, nearly half of the cost of a new house and land package is swallowed up by taxes, fees, and related charges - effectively putting homeownership out of reach for many Victorians," Ryan elaborated.

Ryan also expressed disappointment that higher premiums were not coupled with enhanced insurance benefits for homeowners. He cautioned that builders, already stretched by increased material and labor costs, will ultimately pass these added expenses on to customers.

While premium hikes are aimed at safeguarding homeowners in these turbulent times, it’s clear that the cascading costs and their effects on housing affordability will spark further debate. This article incorporates information originally reported by insuranceNEWS.com.au.

Published:Monday, 17th Jun 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Fruit Fly Pressure Shows Biosecurity Is a Whole-Farm Insurance Issue

11 Aug 2026: Paige Estritori

Recent rural reporting on Queensland fruit fly pressure in horticultural regions is a timely reminder that biosecurity is not only a production issue. For orchardists, vegetable growers and mixed farms with small horticulture enterprises, a pest detection can affect far more than the crop in the paddock. It can influence picking schedules, packing arrangements, transport routes, labour planning, market access and cash flow. - read more

What Rising Insurance Complaints Mean for Truck Operators

06 Aug 2026: Paige Estritori

The latest insurance complaint trends are a timely warning for Australian truck owners, owner-drivers and fleet operators: the quality of a policy matters, but so does the way a claim is handled once something goes wrong. Across the general insurance sector, complaints continue to point to recurring pressure points such as delays, disputed decisions, communication gaps and confusion about policy terms. - read more

Why AI dash cameras are becoming an insurance issue for truck fleets

05 Aug 2026: Paige Estritori

The latest fleet technology coverage points to a clear shift in Australian transport: AI-enabled dash cameras, telematics and connected maintenance platforms are moving from optional extras to everyday risk-management tools. For truck operators, the insurance implications are becoming harder to ignore. - read more

NSW Workers Compensation Pressure Puts Tradie Employers on Notice

05 Aug 2026: Paige Estritori

Fresh attention on New South Wales workers compensation pricing is a timely reminder that insurance costs are not moving evenly across Australia. While some trade employers in other states have recently gained breathing room, NSW businesses are still operating in a market where scheme sustainability, claims duration and workplace injury trends remain under scrutiny. - read more

What Genetic Testing Reform Could Mean for Income Protection Applicants

05 Aug 2026: Paige Estritori

Australia’s move to restrict the use of adverse genetic test results in life insurance underwriting is an important development for people who have been hesitant to explore personal cover. While the reform is usually discussed in relation to life insurance, it also matters for income insurance because many retail policies sit within the broader life insurance framework. - read more

Click for more Insurance News