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Australian Homeowners Confront Steep Rise in Insurance Premiums

Darwin Tops the List as Most Expensive City for Home Insurance

Australian Homeowners Confront Steep Rise in Insurance Premiums?w=400

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.

Over the past five years, Australian homeowners have experienced a significant 51% increase in home insurance premiums.
This surge has placed a considerable financial burden on property owners nationwide, with Darwin residents facing the highest costs.

According to recent data, the average annual home insurance premium in Darwin reached $4,015 as of October 2025. Sydney and Brisbane followed closely, with average premiums of $3,964 and $3,872, respectively. In contrast, Adelaide reported the lowest average premium at $2,042.

Several factors contribute to these escalating costs. The increasing frequency and severity of natural disasters, such as floods and bushfires, have led to a higher number of claims. This trend has prompted insurers to adjust premiums to reflect the heightened risk. Additionally, rising construction costs and persistent inflation have further influenced the upward trajectory of insurance rates.

For real estate professionals, these developments underscore the importance of comprehensive insurance coverage. Ensuring that properties are adequately insured against potential risks is crucial in safeguarding clients' investments and maintaining trust in the real estate market.

To mitigate the impact of rising premiums, homeowners and real estate agents can consider several strategies. Shopping around for competitive insurance quotes, increasing excess amounts to lower premiums, and implementing risk mitigation measures, such as installing security systems or reinforcing structures against natural disasters, can be effective approaches.

Staying informed about market trends and understanding the factors influencing insurance costs will enable real estate professionals to provide valuable guidance to clients navigating the complexities of property insurance in an evolving landscape.

Published:Tuesday, 24th Feb 2026
Source: Paige Estritori

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

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Insurance which provides protection against liability to third parties.