00:00A few weeks ago Blair Jeffreys and his fiancé Ella Green got an unwelcome surprise when
00:08they received their home insurance renewal.
00:11Last year our premium was about $2,069 and then this year when we got the annual premium
00:17it had gone up to about $3,600.
00:21Their experience isn't unusual.
00:241.6 million households in Australia face insurance costs that are more than one month's
00:30worth of gross annual household income, so that's very expensive.
00:36Those 1.6 million households are classed as facing extreme affordability pressure, with
00:41many of those paying premiums that are more than nine weeks of their pre-tax income, if
00:46they can afford to pay it all.
00:48I am absolutely seeing more examples coming through the phone lines of people who simply
00:53cannot afford their insurance anymore.
00:55The Actuary Institute's report estimates 180,000 households with mortgages face extreme insurance
01:02costs, with many unlikely to be paying their premiums.
01:07Several homeowners around Australia have told the ABC they're currently in a home that's
01:11under-insured or uninsured altogether, which is putting them in breach of the conditions
01:16of their mortgage.
01:17One woman in Queensland who didn't want to do an on-camera interview out of fear of losing
01:22her home, said her insurance premium went from $3,000 last year to more than $30,000
01:27this year, which she can't afford to pay.
01:30The insurance industry says the price rises are beyond its control.
01:34Things like the rising value in Australian homes, the impact of inflation, particularly
01:40on building materials and labour.
01:42But that's little comfort for Blair and Ella, who'll have to pay their insurance bill out
01:46of their wedding fund.
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