Fears many Australians will abandon home insurance as premiums jump 50% in high-risk areas

Flooding in Lismore in March 2022. The northern rivers region of NSW is among the highest-risk areas where households with lower incomes are confronted with skyrocketing insurance premiums. Photograph: Dan Peled/Getty Images

Home insurance premiums have climbed by 50% in high-risk parts of Australia as global heating increases the frequency and cost of climate disasters, a new report has found.

The Actuaries Institute’s research on home insurance affordability and funding for flood costs, released on Monday, found median home insurance premiums rose by 28% in the year to March, sitting at an average of $1,894 across all states.