Why do home insurance premiums change?
We want you to feel informed about the reasons behind changes to your Home Insurance premium. That’s why we’ve broken down some of the common factors that affect pricing and how you can consider checking if the coverage is right for you.
What impacts premium?
The below general information is relevant to GIO home and/or contents, landlord and strata insurance (unless otherwise stated). Please refer to your relevant policy documents for more detail.
Many factors can impact the amount of premium that we charge our customers, some key matters are set out below. In addition to change in circumstances impacting your cover, premiums are also impacted by changes in our pricing practice, pricing factors and how we calculate premium from time to time.
Sum insured is the most you can claim for any one incident unless stated otherwise in your relevant PDS. Repairs on high value homes also tend to cost more, resulting in higher premiums.
The materials used to build a home will affect the premium charged, in particular the roof and wall materials as these are what protects a home from outside elements.
Excess is the amount you ordinarily have to pay for each incident when you make a claim. If you choose a higher excess, you may be out of pocket more when making a claim. A higher excess reduces our claims cost meaning we can reduce your premium. Higher excess means a lower premium, lower excess means a higher premium.
When your premiums are paid upfront annually it is usually cheaper. Should you choose to pay monthly, a higher premium is usually charged.
After we have calculated the amount to cover your insurance policy, any applicable stamp duty, GST, charge and levy are then applied. Government taxes and charges may change from time to time.
How can I review my premium?
The below general information is relevant to GIO home and/or contents, landlord and strata insurance (unless otherwise stated). Please refer to your relevant policy documents for more detail.
Review your policies to make sure all details are correct. Some changes can impact your premium if they affect the premium factors. Below are some ways you can influence how much premium you pay under our suite of GIO home products where relevant. When reviewing your policy, you should always consider your own personal circumstances and check whether your policy suits your own needs.
By increasing your standard excess it will lower your premium. However, decreasing your standard excess will mean you will pay a higher premium.
The amount you select as the sum insured for your home and/or contents, landlord and strata insurance, will also influence your premium.
On renewal we also consider a range of factors that can influence the cost to rebuild the building and may choose to adjust the building sum insured shown on your certificate of insurance at the end of each period of insurance. This is to account for various factors including inflationary trends. However, at each renewal, you need to consider if the level of sum insured is sufficient for your situations and contact us if it is not appropriate.
GIO offers a multi-policy discount up to 10% if you insure three or more eligible paid personal insurance policies with GIO. Eligible policies are GIO home, contents, car, motorcycle, caravan, boat. A GIO NSW CTP Greenslip and GIO ACT CTP insurance policy count as eligible policies, but the premium for these policies cannot be discounted. Comprehensive Car Insurance counts as an eligible policy, but the discount is not applicable to Roadside Assist optional cover. Discount is not applicable to strata insurance policies and to GIO Home Assist, Excess-free Glass or Domestic Workers Compensation optional covers.
GIO offers a discount on the combined premium of up to 15%, when you insure your home and contents for the same property under the same policy.
GIO offers a discount of up to 6% on your home and contents insurance premium if you hold a senior’s card. This discount does not apply to landlord and strata insurance policies.
Discounts are also a factor that can affect your premium. The premium you pay for your insurance includes any discounts we have given you. Any discounts are usually calculated and applied before the application of government taxes and charges. Discounts are not applied to GIO Home Assist, Excess-free Glass or Domestic Workers Compensation optional covers.
You should check your relevant policy documentation for information on discounts.
From time to time we might also offer discounts or some other special offer as part of a marketing campaign. If we do this, separate terms and conditions will usually apply. The amount and type of discounts that may be offered can change or be withdrawn.
If you are eligible for more than one discount, we usually apply any subsequent discount to the already discounted premium.
To make changes to your policy, log in online to your account or give us a call on 13 10 10. Online changes are not available for strata insurance.
Disclaimers:
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
The information provided is accurate and true as of 7th September 2023, noting we may change our pricing practice (and the premium factors) from time to time.
GIO Home and Contents, Landlord and Strata Insurance is issued by AAI Limited ABN 48 005 297 807 trading as GIO. Please read and consider the relevant Product Disclosure Statement before you make any decisions about any insurance products buying this insurance. Go to www.gio.com.au for a copy. The Target Market Determination is also available. This advice has been prepared without taking into account any person’s particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.
