Home Insurance

Climate change is driving up home insurance costs and making cover harder to secure in high-risk areas. California has introduced a new approach that allows forward-looking climate and catastrophe models in pricing, but requires insurers to expand coverage in riskier locations—an idea Australia could explore to stabilise premiums, keep cover available, and encourage safer homes.

Home insurance is commonly required because it protects homeowners, mortgage lenders, and communities from major financial shocks tied to disasters, fire, theft, and liability. It also supports property maintenance, market stability, and compliance with local rules where insurance is legally mandated.