Victorian Insurance Premiums Spike Amidst Industry Turbulence

5

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
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Insuregroup's Remarkable Growth Reflects Surge in Truck Insurance Demand

07 Dec 2025: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently announced a significant milestone: processing over 10,000 insurance policies since its inception, with a 25% increase in policy volume over the past year. This growth underscores the escalating demand for comprehensive truck insurance solutions tailored to the unique needs of Australian freight operators. - read more

Envest Group Unveils TLI Underwriting: A New Era for Heavy Motor Fleet Insurance

07 Dec 2025: Paige Estritori

Envest Group, a prominent player in Australia's insurance sector, has announced the launch of TLI Underwriting, a new agency dedicated to providing specialized insurance solutions for heavy motor fleet operators. This strategic move aims to address the unique challenges faced by larger transport businesses in Australia. - read more

ASIC Initiates Legal Proceedings Against QBE for Alleged Misleading Discount Practices

07 Dec 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has commenced legal action against QBE Insurance, alleging that the insurer misled more than 500,000 customers regarding premium discounts over a five-year period. This development has significant implications for the Australian insurance industry, particularly for policyholders seeking transparency and fairness in premium calculations. - read more

Declining Construction Insurance Premiums: A Boon for Australian Tradies

07 Dec 2025: Paige Estritori

In 2025, Australia's construction insurance market has experienced a significant shift, with premiums decreasing across various lines due to intensified competition among insurers. This trend is particularly beneficial for tradespeople, commonly known as 'tradies,' who are witnessing more affordable coverage options. - read more

Upcoming Insurance Mandate: NSW Builders Must Act Before 2026 Deadline

07 Dec 2025: Paige Estritori

In a significant regulatory development, registered building practitioners in New South Wales (NSW) are now required to secure professional indemnity (PI) insurance by July 1, 2026. This mandate, stemming from the Design and Building Practitioners Act 2021, underscores the importance of comprehensive risk management for tradies operating within the state. - read more

Click for more Insurance News