InsuranceIn risks by NQ home buyers

MORE than two fifths of first home buyers in North Queensland are ignoring insurance costs, leaving them exposed to no cover if impacted by wild weather.

Research by provider Sure Insurance found 38.8 per cent of first home buyers across North Queensland and Far North Queensland who had obtained a quote from the provider had considered the cost of insuring their home before buying.

The insurer’s study, completed with customers between April and September, also showed only 32.5 per cent of other home buyers in regional Queensland had considered the cost of household insurance before buying property.

Sure Insurance managing director Bradley Heath said he was alarmed buyers were not understanding the costs of insurance before buying a home, particularly with the threat of another severe La Niña weather season ahead.

“Being fully aware of the cost of household insurance not only equips prospective buyers with critical information on the property to potentially enable more effective negotiation on price but, also exactly what the cost will be to fully protect the home with adequate insurance cover,” Mr Heath said.

“We recommend home buyers and especially first home buyers on tight budgets seek a quote on the cost of household insurance cover before moving forward with a property purchase.”

Mr Heath also urged aspiring home buyers to check the contract of sale for details on household insurance responsibilities.

The Bulletin revealed in February that North Queenslanders were being asked to pay up to 73 per cent more on property insurance by their providers.

According to a report by Canstar on October 28, the average cost for home and contents insurance for North Queenslanders (above Rockhampton) was $5058 per year, a 10.9 per cent increase on 2021’s figures.

Building-only insurance rose by 14 per cent to an average of $4526 per year.