David Koch reveals why Aussies in a single metropolis are paying a LOT extra for dwelling insurance coverage

Residents of a major Australian city are now paying 15 per cent more for home and contents insurance because there’s a high risk of flooding, new figures show.

Brisbane‘s average home and contents insurance quote of $2,914 is significantly higher than the capital city average of $2,529.

It’s also more expensive than Sydney‘s $2,908 and costs significantly more than Melbourne‘s $2,260. 

Former Sunrise presenter David Koch, who is now Compare the Market’s economic director, said Brisbane home insurance premiums had soared because of ex-Tropical Cyclone Alfred in March, which caused major flooding across south-east Queensland.

‘Insurers are still counting the cost of this year’s protracted wet season, and we might have to expect higher premiums in parts of New South Wales and southeast Queensland as a result,’ he said.

The Climate Council regards Brisbane as Australia’s fourth most vulnerable federal electorate when it comes to natural disasters, with this area covering the city centre, New Farm, Newstead and Fortitude Valley.

‘Being built on a flood plain around the Brisbane River places the electorate and city at great risk of flooding when heavy rainfall and or storm surge strikes,’ it said.

Climate Council analysis showed 18,878 or 12.7 per cent of properties in inner-city Brisbane are ‘already at high risk’ from riverine flooding.

Residents of a major Australian city are paying 15 per cent more for home and contents insurance because of natural disasters, new figures show (pictured is a flooded house in Brisbane)

The Climate Council regards Brisbane as Australia’s fourth most vulnerable federal electorate when it comes to natural disasters, with this area covering the city centre, New Farm, Newstead and Fortitude Valley

This marked a 36.3 per cent increase ‘in average risk damage from climate extremes’ since 1990.

The risk of damage from climate extremes is expected to surge by 64.8 per cent by the end of the 21st century. 

The Climate Council also listed 10 federal electorates where average insurance costs are more likely to be unaffordable, because damage from natural disasters is likely to cost one per cent of a home’s value in repairs.

Of this list, Brisbane was one of just three capital city electorates where homes are potentially uninsurable, based on the potentially prohibitive cost of premiums. 

Queensland also receives Australia’s biggest interstate influx of new residents, with 25,940 people moving there last year from other parts of the country.

The bulk of those arrivals are settling in Brisbane and the state’s south-east corner, covering the Gold Coast. 

Brisbane’s median house price climbed above $1million in May, making it Australia’s second most expensive capital city market after Sydney, CoreLogic data showed.

For those relocating to Brisbane, Compare the Market calculated a $1,965 difference between quotes for the same Bridgeman Downs property in the city’s north.

Former Sunrise presenter David Koch , who is now Compare the Market’s economic director, said Brisbane home insurance premiums had soared because of ex-tropical cyclone Alfred in March, which caused flooding across south-east Queensland (he is pictured left with wife Libby)

‘Our research shows there are plenty of deals and incentives around to entice customers making a switch,’ he said.

Brisbane had the biggest average growth of 2.29 per cent in home and contents quotes in the June quarter.

While overall inflation is moderating, insurance costs are still a strain on the household budget. 

Adelaide has the cheapest average home and contents quote of $2,234, followed by Melbourne ($2,260) and Perth ($2,346).