Why do home insurance premiums change?
We want you to feel informed about the reasons behind changes to your Home Insurance premium. That’s why we’ve broken down some of the common factors that affect pricing and how you can consider checking if the coverage is right for you.
What impacts premium?
The below general information is relevant to Apia home (including home, contents, home & contents, home & contents extra, apartment, assisted living, village cover), landlord building, landlord contents, landlord building and contents (unless otherwise stated). Please refer to your relevant policy documents for more detail.
Many factors can impact the amount of premium that we charge our customers, some key matters are set out below. In addition to change in circumstances impacting your cover, premiums are also impacted by changes in our pricing practice, pricing factors and how we calculate premium from time to time.
Sum insured is the most you can claim for any one incident less any deductions that apply, unless stated otherwise in your relevant PDS. Repairs on high value homes also tend to cost more, resulting in higher premiums.
In some areas of Australia, natural disasters or severe weather events can happen more often and therefore, location can impact the premium more substantively. Certain areas with higher risk of theft, vandalism and other similar incidents will also affect the premium.
The materials used to build a home will affect the premium charges, in particular, the roof and wall materials as these are what protects a home from outside elements.
Excess is the amount you ordinarily have to pay for each incident when you make a claim. If you choose a higher excess, you may be out of pocket more when making a claim. A higher excess reduces our claims cost meaning we can reduce your premium. Higher excess means a lower premium, lower excess means a higher premium. Changes to excess not applicable to all covers.
A premium may change depending on the total amount of claims we receive each year. If we receive more claims than expected, premiums can be impacted.
After we have calculated the amount to cover your insurance policy, any applicable stamp duty, GST, charge and levy is then applied. Government taxes and charges may change from time to time.
How can I review my premium?
The below general information is relevant to Apia home (including home, contents, home & contents, home & contents extra, apartment, assisted living, village cover), landlord building, landlord contents, landlord building and contents (unless otherwise stated). Please refer to your relevant policy documents for more detail.
Review your policies to make sure all details are correct. Some changes can impact your premium if they affect the premium factors. Below are some ways you can influence how much premium you pay under our suite of home products. When reviewing your policy, you should always consider your own personal circumstances and check whether your policy suits your own needs.
By increasing your excess it will lower your premium. However, decreasing your excess will mean you will pay a higher premium. Changes to excess not applicable to all covers.
The amount you select as the sum insured for your building and contents will also influence your premium.
On renewal we also consider a range of factors that can influence the cost to rebuild the building and may choose to adjust the building sum insured shown on your certificate of insurance at the end of each period of insurance. This is to account for various factors including inflationary trends. However, at each renewal, you need to consider if the level of sum insured is sufficient for your situation and contact us if it is not appropriate.
Discounts are also a factor that can affect your premium. The premium you pay for your insurance includes any discounts we have given you. Any discounts are usually calculated and applied before the application of government taxes and charges.
Please refer to 'Ways to Save' for detailed information about discounts and savings available.
You should check your relevant policy documentation for information on discounts. To make changes to your policy, log in online to your account or give us a call on 13 50 50.
Apia's Online Services are not available, or not fully available, for all of Apia branded products, policy types or claim types. See Apia's Online Terms for further information.
Disclaimers:
- The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
- The information provided is accurate and true as of 7th September 2023, noting we may change our pricing practice (and the premium factors) from time to time.
Australian Pensioners Insurance Agency Pty Limited ABN 14 099 650 996 is an authorised representative of AAI Limited ABN 48 005 297 807, the product issuer for Apia home (including home, contents, home & contents, home & contents extra, apartment, assisted living, village cover), landlord building, landlord contents, landlord building and contents. Read the Product Disclosure Statement before buying this insurance. Go to apia.com.au for a copy. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group.
