Insurance costs: Underinsurance on the rise as in areas where premiums have soared

Insurance premiums have shot up around Australia in the past few years, but for Emma Jordan, the increase has been particularly severe.

After her house was damaged in severe flooding of 2022, the 27-year-old says the annual cost of insuring her house in the Victorian town of Echuca skyrocketed from about $2000 three years ago to about $10,000 today, according to quotes she’s received.

The cost is so high that Jordan’s biggest asset is currently uninsured, although she plans to reassess in the future and could instead take out partial cover for the house.

“I haven’t taken up any insurance at this point because $10,000 a year on insurance isn’t really feasible,” Jordan says.

Her story highlights the growing risk of underinsurance for people in places where insurance premiums have soared.