News Corp Australia
First published 6 Apr 2025, 5:30am
As if life wasn’t already expensive enough, new data has shown where homeowners are getting stung the hardest when it comes to their house insurance.
New Finder analysis of three major insurance providers’ average quotes for SA’s most densely populated council areas have revealed where homeowners need the deepest pockets.
And the results are surprising.
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The most expensive council area was Charles Sturt – which spans from Brompton to West Beach and up to West Lakes Shore – where the average premium on a median-priced home of $980,000 was $2593.
Highlighting the need to shop around when purchasing insurance, the first provider’s quote came in at $1644, another was close at $1639, however a third provider’s quote was a whopping $4496.
The Adelaide Hills was the second-most expensive, with an average premium of $2564 for a $1.075m property.
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Home insurance is just another barrier to home ownership for many. Pic: iStock
Unlike in Charles Sturt, just $266 separates all three quotes.
Adelaide, Holdfast Bay and Clare and Gilbert Valley council areas rounded out the top five for most expensive premiums.
Nationally, the average home insurance premium now sits at $2790, with Brisbane taking the unenviable crown with a record-high average premium of $11,881.
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Finder insurance expert Peta Taylor said the research found 3 per cent of Australians (about 370,000 people) have either downgraded or ditched their insurance entirely due to cost pressures in the past year, raising concerns there is a growing risk of underinsurance, or worse, no cover at all.
“That’s deeply concerning,” she said.
Finder’s Peta Taylor. Pic: Supplied
“If your policy no longer reflects the full cost to rebuild, you’re exposed.”
“For many families, especially those in high-risk areas, it’s becoming harder and harder to justify the cost.
“But the real question isn’t just: ‘Can I afford it?’ – it’s: ‘Can I afford not to have it?’”
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Ms Taylor said each insurer calculates risk differently through proprietary models.
“What we do know is that risk pricing usually includes a mix of environmental exposure, crime rates, the cost of materials and labour to rebuild, and other property-specific factors,” she said.
Ms Taylor said premiums were trending upwards in some parts of Adelaide.
Crime rates can impact your insurance premium. Pic: iStock
“If premiums are rising without a clear disaster event, it often points to other underlying trends — maybe more claims, rising construction costs, or even broader inflationary pressure,” she said.
Surprisingly, the council area with the highest median sale price was one of the cheapest to insure.
Premiums on a median-priced home of $1.65m in Burnside Council would cost you just an average $1515.
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Playford had the lowest average premium of any council area at $1261 for a median priced home of $580,000.
A paper by the Australian Housing and Urban Research Institute revealed the issue of underinsurance is likely to continue.
Professor David Sanderson of the University of New South Wales. Pic: Supplied
“Underinsurance is likely to become increasingly problematic as floods and bushfires intensify and become more frequent in the future,” lead researcher Professor David Sanderson from the University of New South Wales said.
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“The Australian Government should consider establishing a federal insurance scheme for those who cannot afford to pay high premiums.
“This will go a long way in helping Australian communities to build back better (after a disaster).”
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