Is your home properly insured?
Some homeowners in Queensland are taking the ultimate risk and not renewing home and contents insurance due to rising premiums.
The move would place them in breach of their mortgage contacts and expose them to significant financial losses in case of fire, storm or another natural disaster.
One North Queensland insurance broker said premiums had jumped from 200-600% and people were quietly dumping their insurance coverage because they could not afford to pay.
Affordability was identified as a major factor in people’s inability to insurance their properties after the 2011 cyclone and floods in Queensland.
The Australian Banking Association said not having insurance was a breach of mortgage agreements but it was unlikely to result in a lender throwing people out of a home.
The risk was if the house was destroyed in some form, which, in the case of houses, would leave home owners with just land and no funds to rebuild.
In the case of apartments it could leave people with nothing and in both cases the people would be left with a mortgage but no-where to live.
The Insurance Council of Australia said not insuring a property was the equivalent of financial suicide.