According to CommSec renovation loans has seen an unprecedented surge in Australia, with loans increasing by 7.4 per cent in June 2021 and hitting a 19-year record. Moreover, in the past year, property owners have taken out $4.38 billion in loans to fund home improvements. However, with this renovation boom has come a rise in the number of underinsured Australians.
New research by Honey has seen 29% of Australians proactively increasing their home insurance to cover an increase in their property value due to alterations, additions, repairs and rebuilds in the past year. However, a small minority, 12% admitted to not knowing it was necessary to increase their cover and another 21% assume they have sufficient coverage in place already.
Similarly, the majority of Australians (67%) are confident their insurer will pay out their claim in full. Yet, industry reports suggest that as much as 1 in 5 household insurance claims are declined or withdrawn, so making sure you have the right level of coverage could be the thing that saves you from being caught out.
Angelo Azar, Chief Operating Officer at Honey Insurance said “Australian homes have provided sanctuary during the pandemic and funds that may have been spent on travel, events and everyday activities have been invested into home improvements to create a new standard of living. We’re seeing significant value placed in the home and Australians are now acutely aware of the benefits of a proactive home insurance provider to protect their assets. As Australians re-consider the value of home insurance, Honey have launched to provide a smarter and more proactive option to suit how modern Australians live.”
“One of our big differences is that we utilise intelligent satellite data that can identify changes to the home including renovations, and alert customers that they may need to change their insurance amount. By using technology-driven data to be alerted to changes in the home, Honey can not only help customers get insured for the correct amount but surface a quote using integrated data to help address underinsurance in Australia.” he continued.
The new research revealed 92% of Australians believe home and contents insurance is more important now than ever before. With most Australians (62%) stating it is most important to insure their personal belongings against accidental loss. Closely followed by other factors including, Australia’s changing climate & recent extreme fire and flood events (55%) and increased theft & vandalism (47%).
The research also found the travel bug amongst Australians is alive now that international borders are open for fully vaccinated travellers and Aussies are dreaming up their next overseas holiday or making plans to reunite with family and friends. However, almost one third of Australians (32%) admitted to feeling a range of mixed emotions and anxiety leaving their home unattended as they readjust to ‘normal’ life. Honey is disrupting the current insurance landscape by empowering customers to feel safe and comfortable in and away from their home through the provision of app-integrated smart sensors that detect the three most common household accidents that lead to claims, including water leaks, fires and theft as a bonus.
“This year has presented a number of financial and emotional challenges for Australians. While doing the work to find the best value insurance can be challenging, the benefits can amount to more than just peace of mind.” Angelo concluded.
Notes to the editor
All figures, unless otherwise stated, are from PureProfile. Total sample size was 1,000 adults (aged 18+). Fieldwork was undertaken between Friday 12 November and Monday 15 November. The survey was carried out online.
Honey is smart home insurance, and we are on a mission to eliminate the majority of avoidable accidents that happen in the home. We give our customers $250 of technology upfront, and ongoing services to keep homes safer when they sign up for house and contents insurance. We then reward them with a lower price on their insurance for being safer. We raised $15.5m, the largest seed investment in Australian history, from industry leaders such as AGL, Metricon, Mirvac, PEXA, and many others. Honey is underwritten by RACQ, one of the most trusted insurance companies in Australia.