Home Insurance

Major insurers have paused new home policy sales in California, echoing a longer-running pullback in Florida and other disaster-prone states. Rising catastrophe losses, higher reinsurance costs, and regulatory constraints are combining to make some markets harder to price and insure. Experts say the bigger issue is structural: development and construction practices continue to place more property in harm’s way, increasing the likelihood that coverage becomes unavailable or unaffordable over time.

Climate change is driving up home insurance costs and making cover harder to secure in high-risk areas. California has introduced a new approach that allows forward-looking climate and catastrophe models in pricing, but requires insurers to expand coverage in riskier locations—an idea Australia could explore to stabilise premiums, keep cover available, and encourage safer homes.

Home insurance is commonly required because it protects homeowners, mortgage lenders, and communities from major financial shocks tied to disasters, fire, theft, and liability. It also supports property maintenance, market stability, and compliance with local rules where insurance is legally mandated.