Following a strenuous year dedicated to reconstructing his home, McCarthy is now confronted with another obstacle as his insurance costs have surged.
According to the Australian Bureau of Statistics (ABS), insurance premiums have surged by an average of 11 per cent over the past 12 months.
“There must be a mistake here but no it was literally a 250 per cent increase year on year,” he told 9News.
“I guess just based on the fact we had some storm damage at our house and we had to make a small claim.
“It’s (now becoming) a choice of putting food on the table or paying your insurance.”
Experts have warned that premiums will only continue to rise, with millions of homes under threat of natural disasters like bushfires and floods.
“Home and contents insurance was the first necessity that people ceased paying for during challenging times,” stated Cassandra Goldie, the chief executive of the Australian Council of Social Service.
Soft skills on the rise as Australia’s 15 fastest-growing jobs revealed
There is increasing pressure on the federal government to intervene before the upcoming election following a senate inquiry at the end of last year that put forward numerous recommendations for the Australian Competition and Consumer Commission to oversee prices and drive premiums down.
Insurance Council of Australia Executive Director Andrew Hall recommended shopping around for a better deal.
He suggests that homeowners should reach out to their insurer to enquire about payment plans and consider increasing their excess in order to reduce their premiums.
