Many households are spending over four weeks of their annual income on insurance premiums, exacerbating financial pressure and leading to significant stress.

Sharanjit Paddam, the report's lead author, expressed concern that rising premiums are outpacing wage growth, leading to struggles for many homeowners.

Rising home insurance prices in Australia are increasingly driven by climate risks and escalating construction costs, making it unaffordable for many homeowners.

A recent report reveals that approximately 1.6 million Australian households are experiencing home insurance affordability stress, marking a 30% increase from the previous year.

The report estimates that 5% of mortgage-holding households, or about 180,000 homes, are facing insurance affordability stress, with an average premium of $5,216.

Lenders typically require home insurance for mortgage qualification but do not consistently verify ongoing coverage, which poses financial risks for borrowers.

The financial stress from rising premiums could lead to serious repercussions for lenders and the housing market, particularly if natural disasters impact uninsured or underinsured homes.

Experts warn that the potential collapse of the housing market in areas prone to climate disasters could lead to significant economic disruption in the coming years.

In regions like NSW's Northern Rivers, up to 16% of home loans are at risk due to affordability stress related to insurance.

Communities at risk of wildfires could see a 20% loss in home values over the next five years, with some areas facing severe economic repercussions.

Greens senator Mehreen Faruqi stated that fossil fuel companies should bear the financial burden of climate change impacts rather than households.

In major cities like Sydney and Brisbane, home insurance premiums have seen dramatic increases, with Sydney's premiums rising by 12.6% over the past year.