Home and contents insurance seems like an essential backup, but one in ten Australians avoid it. Why are we insurance-shy? A new survey suggests some possible answers.
Picture by Troy Kelly
The survey, conducted by insurance operator IAG, asked 1200 Australians why they didn't have home or contents insurance. The most common concern was that insurance was "too expensive", a reason cited by 40 per cent overall. Here are the other factors involved, broken down for both home and contents insurance:
The figures are fairly similar in both categories, with two notable exceptions. When it comes to contents insurance, there's a stronger apparent disbelief that the claim will be paid in the first place. In terms of building insurance, preferring to pay for damage yourself was twice as common an argument for buildings than for contents. In essence, I suspect that's a variant on "it's too expensive": in high-risk areas, the insurance premiums might be so high that self-insuring seems preferable.
The list of reasons isn't exhaustive: for instance, if you live in a unit, you won't pay for building insurance directly (though it will be part of your fees). Have you resisted getting insurance? Tell us why in the comments.
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